Friday, December 30, 2011

PFG Year End Performance + 54.39% Since Sept 2011

PFG Year End Performance


Implied Vol 14.08%
Watermark Leverage 16.8
Average Leverage 4


PFG Year-End Management note

We are still very early in performance meaning anything to actually project, since September however we have learned a few valuable lessons.

  1. Day Trading is very stressful and best left to machines/systematic emotionless folks
  2. Taking money off the table, entering trades should be done in thirds, no more, no less
  3. Risk management, over analysis of positions does payoff at the end in profit maximization.  
  4. Staying focused on your thesis, challenging your book everyday when offside by flipping it around and asking “what am i rooting for?”  Don’t ask yourself why your positions are losing, rather why the opposite book to yours is winning
  5. No way to remove emotions of trading unless you can allow a computer to trade your money and walk away.


2012 Themes

1. We continue to see value in Web Security Stocks and out of favor names

Performance

Web Basket + 11%
Out of Favor -13.5%

2. Hold financial upside calls for an Obama failure
3. Systematic Algo VIX Iron Condor Trading - Cheap Tail Hedge for a short vol portfolio
4. Enter into short vol trades on market fear

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