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#13 – March 2024 – End of month report

Wow, is there a lot to say about March or what?

As a brief summary, I’ll be talking about:

  • Profit and reporting,
  • Starting or adding to a copy and managing emotions, and
  • Withdrawals and rebalancing.

First of all, let me apologize for the delay in posting the end-of-month report. I was taking some time off to visit lovely Andalucia.

This month is the best explanation of why looking at the eToro profit stats is not a good measure to assess the profitability of the copy. While eToro reports a -8.93% loss, I register a +2.74% gain. How is it so? Quite simply, eToro reports on what the investment would be worth if liquidated at that very moment, hence cashing in on all the loss-making open positions. While I report on all the profit made during the month, knowing that I will keep those loss-making positions open until they are no longer loss-making. How long is that? It could be long. I just recently closed a LONG position on the UK100 at 7850 that had been open since May 2023. This is the way I keep making profits: by avoiding losses 😁

Naturally, being that we are far out in the upper end of the grid, this would be the best time to start copying or to add money to the copy. I do understand, however, that this feels very, very scary. On one side, there is the logical, evidence-based knowledge that markets, and in particular the UK100 index, oscillate and if we are testing a boundary, there is a chance that an investment at this point will multiply the benefit. On the other hand, there is the fear that this might be the time that the grid theory might be broken and the oscillation might not come. I cannot advise you on what to do; it’s very much down to your capacity to take a chance when faced with a risk/opportunity, but one thing I’d say for sure, and this applies to those people that have left the copy at a loss during this testing month, don’t jump ship out of fear. Emotions and markets are travel buddies but are not the best of friends.

Finally, a word about the rebalancing engine. There has been a lot of chatter on the companion Telegram group to this portfolio [ https://t.me/+FBNtSKeHWbg5ODI0 ] about the effect of my latest withdrawal. I am a copy trader and therefore I do not copy others, so I’ll have to leave both peer support or eToro support to answer the questions that arise from the new system of rebalancing. I strongly encourage you to get in touch with them to both highlight issues or to suggest a way forward. As for what I am concerned, I’m very happy to modify my modus operandi if this is deemed to be disadvantageous to the majority of my copiers. Keep me informed of what happens in your portfolios, and I’ll do my best to keep yours and my profits rolling.

Thanks for your continuous support and good trading,

Alex

💰 The growth for this month was $2,735.00 (2.74%).

⏺️ eToro data

  • Month Average Risk: 4,
  • Month Max Risk: 5,
  • Performance -8.93%,
  • Copiers number: 900, 911 (-1.2%),
  • AUM: $3,000,000, $3,110,000 (-3.54%)
  • Portfolio value:
    • Unrealised: $102,765.00
    • Realized: $85,063.00
  • Portfolio composition:
    • Index: 45.64% ($UK100)
    • Share: 3.02% ($SBSW)
    • ETF 3.00% (SPLV, VNQ)
    • Cash: 48.34%

⏺️ My data:

  • Unrealised performance
    • Total change: $2,735.oo (2.74%)
  • Weekly breakdown:
    • W1 0.94%,
    • W2 0.84%,
    • W3 0.57%,
    • W4 0.39%

For all those who are interested here are some shots of the trip to Andalusia.

Starting with Cordoba, the Mesquita and along the river walk

Then moving to the Cathedral in Sevilla

And to finish, the Alhambra in Granada