My Journey (2019 Update)

My focus has definitely shifted since I took a break from blogging.

2018 was first the losing year since I started trading full-time 11 years ago. That was certainly a wake-up call. I decided my trading approach was too risky to be doing with more than a limited portion of the account (akin to what I discussed in the second paragraph here). As a result, I have traded a small position size all year. While I have been profitable, I have significantly underperformed the benchmark.

My focus has gradually turned toward incorporating other asset classes in addition to equity options. I hope such diversification can increase total returns more than drawdown thereby improving my risk-adjusted return.

One way to accomplish this is to trade a basket of long uncorrelated futures. In other posts, I will detail my reasoning and plan for this strategy. Said discussion also begs for some space devoted to the concept and implications of correlation.

Another way to trade multiple asset classes is to develop multiple trading strategies. I will delve into this next time.