Macro Investor Volume 1, Number 15 is now available at the website.
Over the past four months, Macro Investor has offered a model portfolio called MacroTrades. As you can see from the above chart, it has nicely out-performed a good period in the ASX, and that includes dividends.
But the above chart does not give you a true indication of the role and performance of this portfolio. To achieve the full ASX returns you would have had to be fully invested. MacroTrades is designed to be a part of a larger balanced barbell portfolio in which the other 90% is dedicated to low risk income securities. So, we calculate returns based upon deploying approximately $10k in a $100k portfolio. In four months, MacroTrades has returned 13.5%, an annualised rate of 39.5% and if assessed in terms only of capital at risk, 135%.
Now, it is not entirely fair to represent things in this way. We are, after all, only four moths into the year and this portfolio is intrinsically volatile. Nonetheless, it gives you a guide to the kind of performance that we are aiming for.
MacroTrades uses a medium term trend trading system, designed to capture large moves in forex, commodities, precious metals and stock markets. The trades are medium term in nature, with a view to holding for on average 1-3 months. Both long and short positions are utilised, as volatility can present in both directions. Risk control is paramount, as most trades are undertaken using contracts for difference or futures, which are leveraged products, but some some positions can be done using exchange traded funds, which are gaining popularity with Australian investors.
MacroTrades is a system, in following it you should be aware that it operates on principles of market technicals and capital management. Sometimes this means taking losses when you might think that there are reasons to exit a position. Or missing gains when you reason that it is better to stay invested.
Today, we are excited to announce that MacroTrades will be offered as a daily updated product. Trade articles will be published before 9am each morning, with updates on all positions including sell, take profit and scaling signals and stop loss levels.
Live trades will be available to all Macro Investor subscribers. A free 21-day trial is available at the site!
