Table of Contents
Result of a public investment experiment – profitability grows +5%
Goal of investment experiment
As we mentioned before (link on Russian language), the main expertise of our Company is an options trading on the NYSE and NASDAQ markets. Not so long ago, 21 June 2021, we launched the public investment experiment. We prefer the Iron Condor trading strategy on the flat market and Vertical Spread on the tranding market. Both are at the list of top-10 classical option strategies. The know-how of our team is in analytical methods of selection of basic assets of option orders. We consistently did 8-10% monthly on our working capital. This made it easy for us to payout out our investors the unprecedented annual fee of 17-25% in Premium investment package by agreements with individual conditions.
However, we decided to improve our achievements. Our analyst team suggested some enhencement of our trading strategy the essence of which is as follows: the exit from an investment position at the point of reaching half of the potential profit allows, on the one hand, to accelerate the turnover of investment capital, and on the other hand, it reduces the likelihood of the price going beyond the selected range. And this probability, as practice shows, rises sharply when crossing this median point.
The goal of investment experiment was to increase profitability of trading strategy on 2-3%, to 10-12% monthly and reach out the investment portfolio growth rate of 140% per annum.The suggested strategy had both opponents and supporters among our team. There were different arguments for and against. Finally, we took a decision to launch the public experiment on the relatively small amount.
Publicity
So, we allocated 25,000 USD and decided to go public. The rest of working capital of the Universum Credit LLC was invested at the same way as usual, but some amount was temporary invested in US blue chips, to compensate for potential losses in case of the new strategy failure. Before summing up this investment cycle, we have published over 85% of our company’s investment positions in real time in our Telegram group @universum1 . We were unable to publish the rest of 15% of our trades in real time by technical reasons and did it later with some of them, while others were too minor and did not influenced the overall result. We’ve published our trading positions in other chats for business and investments, various web-forums and private chats with our investors as well.
The results of investment strategy
Everyone who followed our updates in real time knows that the result has exceeded our wildest expectations!
Summary
We managed to earn more than 15% per month! Нам удалось сделать более 15% в месяц! Extrapolating this result, we can talk about a return of 180% per annum. We will update the pay outs of our investment packages in nearest future as the result of new improvements of our trading strategy. But you may discuss new individual conditions with our managers right now! The main principle that we are guided by is – the larger your investment and the longer the term of the agreement, the more attractive the conditions. Contracts with payment at the end of the term can be concluded on terms of compound interest with monthly accrual as usual.
The list of all investment positions
We’re presenting the list of all investment positions through discussed period. All this information was published in our Telegram group before.
| Date | Description | Misc. Fees | Commissions & Fees | Amount | Balance |
| 6/22/21 | SOLD -10 IRON CONDOR HAL 100 20 AUG 21 28/32/18/14 CALL/PUT @0.43 | -$0,02 | -$26,00 | $430,00 | $25 403,98 |
| 6/22/21 | SOLD -10 IRON CONDOR XLU 100 20 AUG 21 70/73/60/57 CALL/PUT @0.31 | -$0,02 | -$26,00 | $310,00 | $25 687,96 |
| 6/22/21 | SOLD -10 IRON CONDOR EEM 100 20 AUG 21 58/61/49/46 CALL/PUT @0.32 | -$0,02 | -$26,00 | $320,00 | $25 981,94 |
| 6/22/21 | SOLD -10 IRON CONDOR GDX 100 20 AUG 21 40/44/30/26 CALL/PUT @0.44 | -$0,02 | -$26,00 | $440,00 | $26 395,92 |
| 6/28/21 | SOLD -10 IRON CONDOR GDX 100 20 AUG 21 39/43/30/26 CALL/PUT @0.41 | -$0,02 | -$26,00 | $410,00 | $26 779,90 |
| 6/29/21 | BOT +10 IRON CONDOR XLU 100 20 AUG 21 70/73/60/57 CALL/PUT @0.23 | -$0,02 | -$26,00 | -$230,00 | $26 523,88 |
| 7/1/2021 | SOLD -10 IRON CONDOR ASHR 100 20 AUG 21 44/47/36/33 CALL/PUT @0.31 | -$0,02 | -$26,00 | $310,00 | $26 807,86 |
| 7/2/2021 | SOLD -10 IRON CONDOR GDX 100 20 AUG 21 38/41/30/27 CALL/PUT @0.36 | -$0,02 | -$26,00 | $360,00 | $27 141,84 |
| 7/2/2021 | SOLD -10 IRON CONDOR GDX 100 20 AUG 21 38/42/30/26 CALL/PUT @0.41 | -$0,02 | -$26,00 | $410,00 | $27 525,82 |
| 7/6/2021 | SOLD -5 IRON CONDOR JETS 100 20 AUG 21 28/31/22/19 CALL/PUT @0.31 | -$0,02 | -$13,00 | $155,00 | $27 667,80 |
| 7/9/2021 | SOLD -5 IRON CONDOR GDX 100 20 AUG 21 38/41/30/27 CALL/PUT @0.29 | -$0,02 | -$13,00 | $145,00 | $27 799,78 |
| 7/13/21 | BOT +10 IRON CONDOR EEM 100 20 AUG 21 58/61/49/46 CALL/PUT @0.15 | -$0,02 | -$26,00 | -$150,00 | $27 623,76 |
| 7/13/21 | BOT +10 IRON CONDOR HAL 100 20 AUG 21 28/32/18/14 CALL/PUT @0.23 | -$0,02 | -$26,00 | -$230,00 | $27 367,74 |
| 7/15/21 | SOLD -10 IRON CONDOR LL 100 20 AUG 21 23/25/16/14 CALL/PUT @0.35 | -$0,02 | -$26,00 | $350,00 | $27 691,72 |
| 7/15/21 | SOLD -5 IRON CONDOR LL 100 20 AUG 21 23/25/16/14 CALL/PUT @0.35 | -$0,02 | -$13,00 | $175,00 | $27 853,70 |
| 7/16/21 | SOLD -10 IRON CONDOR HPQ 100 17 SEP 21 32/36/24/20 CALL/PUT @0.42 | -$0,02 | -$26,00 | $420,00 | $28 247,68 |
| 7/19/21 | BOT +5 IRON CONDOR JETS 100 20 AUG 21 28/31/22/19 CALL/PUT @1,14 | -$0,02 | -$13,00 | -$570,00 | $27 664,66 |
| 7/19/21 | SOLD -5 IRON CONDOR TBPH 100 17 SEP 21 17,5/20/10/7,5 CALL/PUT @1,05 | -$0,02 | -$13,00 | $525,00 | $28 176,64 |
| 7/21/21 | BOT +15 1/1/2/2 ~IRON CONDOR GDX 100 20 AUG 21 38/41/30/26 CALL/PUT @0.30 | -$0,02 | -$58,50 | -$450,00 | $27 668,12 |
| 7/21/21 | BOT +10 IRON CONDOR ASHR 100 20 AUG 21 44/47/36/33 CALL/PUT @0.13 | -$0,02 | -$26,00 | -$130,00 | $27 512,10 |
| 7/21/21 | SOLD -50 IRON CONDOR EWZ 100 17 SEP 21 41/42/34/33 CALL/PUT @0.43 | -$0,13 | -$130,00 | 2,150,00 | $29 531,97 |
| 7/21/21 | BOT +5 2/2/3/3 ~IRON CONDOR GDX 100 20 AUG 21 38/42/30/27 CALL/PUT @0.47 | -$0,02 | -$32,50 | -$235,00 | $29 264,45 |
| 7/21/21 | BOT +10 GDX 100 20 AUG 21 39 CALL @0.05 | -$50,00 | $29 214,45 | ||
| 7/21/21 | BOT +10 GDX 100 20 AUG 21 40 CALL @0.03 | -$30,00 | $29 184,45 | ||
| 7/22/21 | SOLD -10 GDX 100 20 AUG 21 44 CALL @0.01 | -$0,01 | -$6,50 | $10,00 | $29 187,94 |
| 7/22/21 | SOLD -10 GDX 100 20 AUG 21 43 CALL @0.01 | -$0,01 | -$6,50 | $10,00 | $29 191,43 |
| 7/23/21 | SOLD -5 IRON CONDOR GDX 100 17 SEP 21 39/43/30/26 CALL/PUT @0.43 | -$0,02 | -$13,00 | $215,00 | $29 393,41 |
| 7/27/21 | SOLD -100 VERTICAL XLC 100 17 SEP 21 71/70 PUT @0.05 | -$0,07 | -$130,00 | $500,00 | $29 763,34 |
| 7/28/21 | SOLD -10 IRON CONDOR KR 100 17 SEP 21 45/49/35/31 CALL/PUT @0.42 | -$0,02 | -$26,00 | $420,00 | $30 157,32 |
| 7/28/21 | SOLD -2 IRON CONDOR HPQ 100 17 SEP 21 33/36/24/21 CALL/PUT @0.32 | -$0,02 | -$5,20 | $64,00 | $30 216,10 |
| 7/29/21 | SOLD -3 IRON CONDOR KR 100 17 SEP 21 45/48/35/32 CALL/PUT @0.36 | -$0,02 | -$7,80 | $108,00 | $30 316,28 |
| 7/30/21 | BOT +10 IRON CONDOR HPQ 100 17 SEP 21 32/36/24/20 CALL/PUT @0.34 | -$0,02 | -$26,00 | -$340,00 | $29 950,26 |
| 7/30/21 | BOT +2 IRON CONDOR HPQ 100 17 SEP 21 33/36/24/21 CALL/PUT @0.24 | -$0,02 | -$5,20 | -$48,00 | $29 897,04 |
| 7/30/21 | BOT +5 IRON CONDOR GDX 100 17 SEP 21 39/43/30/26 CALL/PUT @0.38 | -$0,02 | -$13,00 | -$190,00 | $29 694,02 |
| 7/30/21 | BOT +5 IRON CONDOR TBPH 100 17 SEP 21 17,5/20/10/7,5 CALL/PUT @0.45 | -$0,02 | -$13,00 | -$225,00 | $29 456,00 |
| 7/30/21 | BOT +10 IRON CONDOR KR 100 17 SEP 21 45/49/35/31 CALL/PUT @0.46 | -$0,02 | -$26,00 | -$460,00 | $28 969,98 |
| 7/30/21 | BOT +3 IRON CONDOR KR 100 17 SEP 21 45/48/35/32 CALL/PUT @0.39 | -$0,02 | -$7,80 | -$117,00 | $28 845,16 |
| 7/30/21 | SOLD -20 IRON CONDOR CARR 100 17 SEP 21 60/65/50/45 CALL/PUT @0.65 | -$0,04 | -$52,00 | $1 300,00 | $30 093,12 |
Financial indicators
| Financial indicators | |
| Net Profit | $ 3 932,00 |
| Win rate | 57,89% |
| Lose rate | 39,47% |
| Average winner | $ 335,77 |
| Average loser | $ -230,33 |
|
Average reward/risk (Payoff Ratio)
|
1,46 |
| Profit Factor | 2,14 |
|
Expectancy per trade
|
$ 103,47 |
|
Expectancy per month (profit forecast)
|
|
|
Expectancy per amount of money risked
|
$ 42,29 |
| Win# | 22 |
| Lose# | 15 |
|
Initial investment
|
$ 25 000,00 |
| Profitability | 15,73% |
What’s next? The continue of investment experiment.
So, as you can see, our new strategy has shown excellent results. What are we going to do next?
Firstly, we have increased the investment capital, which is under close public scrutiny, almost tenfold! Starting 03 Aug 2021 we continue to test our strategy with amount of 200 000 USD.
Secondly, we found a way to improve our strategy and we would like to dwell on this in more detail. As you know, the Iron Condor is based on four strikes – two call strikes and two put strikes. So, when a pronounced trend appears, all experts advise to rollover the entire position. It is highly discouraged to close only 2 losing strikes out of four. However, no one explains why. In other words, it is suggested to simply take this fact on faith and act exactly as the recognized authorities in options trading advise.
However, after extensive analysis, we have not found any compelling reason to follow this recommendation. We believe that rollover of the entire position leads to redundancy and additional costs while minimizing potential profits. Therefore, for the first time before your eyes, the Iron Condor strategy will be tested with the closure of half of the strikes in the transition from a flat market to a trend market. By the way, if you are a professional options trader, let us know your thoughts on this in the comments here or in our group @universum1. We are really interested in your opinion, especially if you are a practitioner and support your words with an example of your own trades. But theoretical objections are also welcome.
Tools
Our broker is TD Ameritrade. We use Thinkorswim as main trading software. We provide services of broker accounts opening with TD Ameritrade as well.
Conclusion
We have prepared a nice bonus for you If you have read this article to the end and decided to invest in Universum Credit LLC, then this unlimited [bb_spoiler title=’promotional code’ style=’default’ collapse_link=’true’]GetProfitWithUniversumCredit[/bb_spoiler] will add +1% to any investment package rate. This promotional code will be relevant until we announce the end of this promotion on the pages of our site.
Money rules the world but we control the money.
