2014 was a year of I don’t know what to say!
Practically, the first half the year was dead boring with the markets not really moving anywhere and we saw that in the low volatility.
Nonetheless, we as traders owe it to ourselves to sniff out trades to the best of our abilities.
What made me feel very uncomfortable was the fact that the global economies were diverging which means that through time uncertainty will spike up volatility.
I decided to reduce our leverage in our trading from our usual 5X to 10X down to 3X to 5X, this of course, means that our absolute returns will also be affected. However, my view is that it is better to be safe than sorry.
Our average leverage throughout the year was 4X of our principal.
We did 28 trades throughout the year both spot trades and options which was less than half of the trades we did in 2013.
We decided to stop trading at the end of October as the markets was just getting too crazy with too many central bankers talking too much and at the wrong time. The markets was just swinging like a see saw………violently.
We locked in an absolute return for 2014 of 68.36% p.a., a far cry from the 290% p.a. we did in 2013.
I shall be writing my thoughts for 2015 in the near future.
The Panthenon Investment Group 