That time of the month…..
2020 – 57.5%
YTD for 2021 – We are up by around 7.8% in non-IRA accounts
For June, we were up by 4.78%
The recommendation on the distribution remains 20:40:40 across RP Platinum: RP Swing: RP Innovation. The diversification across strategies which play out in multiple timeframes is working well as you can see.
For those of you who haven’t done so yet, I would strongly recommend diversification across the strategies as a way of maximizing return over risk. Before we go into the performance statistics for the month, I want to spend some time on “Why Optimize/ Diversify?”
Why Optimize/ Diversify?
I will let the diagram below speak for itself. The “dark” black line is the optimized portfolio between RP Platinum, RP Swing and RP Innovation. The objective is to get as straight line as possible without compromising on the returns. As you can see the Optimized Portfolio provides the second highest returns, but it does so with the lowest risk amongst all three models.
The logic is similar to why you should diversify between multiple stocks, industries etc. Reduces risk, and potentially increases return.
This is what the performance looks like over time for the optimized portfolio. Remember that all three strategies do not invest in individual stocks, do not short, do not trade in options. They only trade in ETFs that represent stocks, bonds, gold, crypto and volatility. The speed at which they change positions between assets (lanes) is what differentiates one strategy from another.
The percentages I am recommending are based on the optimization that I do across strategies. I am continuing to work on the optimization algorithm. The recommendation for this month continues to be 20%: 40%: 40% across RP Platinum: RP Swing: RP Innovation
2021 Performance Statistics
Monthly Performance RP – Platinum
Monthly Performance RP – Swing
Monthly Performance RP – Innovation
The annual returns are cumulative, not additive. You need to multiply the returns of each month and not add them up.
