Archive for May, 2008

April Performance

Wednesday, May 21st, 2008

I’ve been a little tardy updating my performance for the month of April. However, better late than never.

According to my statement, the return for the month was 4.88%. Whilst not an outstanding return, it certainly beats having money in the bank – and it’s much more fun.

I took a decision half way through the month to switch to the corn contract. The reasons were:

  • Wheat trades are still suffering a lot of slippage.
  • The wheat margin is still $6,075 which is very high. Now that prices are coming down and volatility is reducing, I expect the margin to be reduced, but it will take a while for this to feed through the system.
  • Corn is in a gentle uptrend, which I find the best environment for my type of trading. Also, with margin at just $1,350, I can trade a lot more contracts to compensate for the lower volatility. Finally, corn has the highest volume of all the grain markets, and I find slippage to be very tight.

During the last 12 months, I’ve had periods trading soybeans, wheat and now corn. I monitor all 3 contracts, and when I see one which appears to be moving into a sweet spot, I make the move.

I’m traveling during May and June, so these will be shortened trading months. That may make it harder to record profitable months (fewer trades to overcome drawdowns), but we’ll see how it goes. May is about breakeven as I write, but I’ve missed a number of profitable trading days.  In fact, had I traded May properly, it would have been one of the better months. Never mind, it’s good to have a break.