I have decided to share my track record from this past year. By track record I mean; all my trades, all my losses and all my gains, along with this, I am going to share with you a graph of my performance relative to the SP500 plus a glimpse of my Sharpe Ratio.
The reason I am doing all this is simple, I want to build a track record for my (potential) future career within this industry. Also, I should note: This is only for educational purposes – I am not selling anything and do not manage anyone’s money (at this time).
So, before we really get into the numbers of it all, I would like to reflect on how I performed this year. I finished up above 17%, which is great on the surface, but I believe I can do better, I would like to do better. So, here are some things off the top of my mind that I would like to improve upon during 2015.
- I had losses this past year and will always have them, it is apart of the business but the losses I did have could have been (somewhat) avoided. Specifically, I often placed trades when I should not have. The most prevalent example of this is when I had not traded for a couple weeks and then would allow my emotions subconsciously take ahold of me and force me into a trade that was not 100% aligned with my process I had built.
- Relative performance hurt me this year. I constantly would compare myself to the SP500, which is extremely damaging from an emotional perspective. I actually wrote a post about this previously, you could read more here: http://www.bencbanks.com/relative-performance-emotional-health/ I hope I can improve upon this in the future, I am sure I will always struggle with it to some degree though.
- Confidence. Every single trader can get better at this, doesn’t matter who they are. My confidence definitely improved over the course of the year, but I am constantly looking to become even more confident (should be an unspoken goal).
- Patience. Another one of those unspoken goals, but nevertheless, should be mentioned. There were many times this past year in which I rushed a trade, got out too early or something along those lines. My goal for 2015 is to slow it down and trust in my process.
I am almost sure there are more than just these few things that I can (and should) improve upon when it comes to my trading but as I sit here and write, those are the ones that come to mind first.
At this point, if you are still on this post you are probably ready to see some numbers, well that is understandable and I am ready to share. Below are some screen shots from my excel document that tracks all my trades. I am not sharing with you the actual monetary gain or loss because that is irrelevant to you (so, please do not ask). However, the percentages are all accurate and I look forward to reading and replying to your comments!
(Please note: This information is as of 12:45 PM on December 30th 2014)
Above you will find every single trade I took in 2014, not a single one is missing. Even the ones I did not Tweet about are on here, all the mistakes can be seen, all the losses and all the gains are there for your viewing. If you click on the image it will pull up a bigger view of the image for easier viewing. On this spreadsheet; average purchase price, sale price and then the gross and net P/L (in percentage terms).
This next screenshot is showing my relative performance on a cumulative, monthly basis versus the SP500. Again, all my mistakes are here, if you look closely my performance took a dip in the last quarter of the year – that’s unfortunate but doesn’t matter in the scheme of things, it is about improving in the long run, not on a weekly or even monthly basis.
This is probably the most interesting of all the graphics you will see on this post. The graph above shows you my relative performance versus the SP500 on a monthly basis. Again, you can see my performance took a dip in the last quarter (reflected on this dip earlier in this post on ‘Things I Can Do Better’). At the end of the day though, I finished about 5% better than the SP500.
Finally, but far from the least I have my Sharpe Ratio calculated above. I use the 3-month t-bill to calculate it, but raised it to the 1/12 power so it is now based on it’s monthly return (that being the 3 month t-bill). My portfolio’s volatility is far less than the SP500’s, which is evident from the monthly returns listed above, my worst month coming in at around .70% and best coming in at 3.43% – this volatility is far less than the typical equity index, which I am proud of. My goal is slow, consistent but strong growth of my monetary capital.
Well, that is all I have for you today. As always, if you have any questions – I’ll do my best to answer them, but the only way I can do that is if you send me an email. So, if there is something that caught your eye or you would like to learn more, send me an email. Otherwise, talk you soon and see you in 2015!