We entered March not fully comprehending the magnitude and global economic ( and soon to be political) shock of the Covid – 19 Pandemic.
With carrying a position into March our moderate February drawdown of -0.77% should have realised into a small but quick profit for early March. However as you can see it pulled us into significant drawdown of -9.52% on the 9th March when the market closed.
I entered into recovery mode which began to take effect after our ultimate zones had been established and the market slowly began to seek equilibrium. Institutions desperately trying to find balance and slashing interest rates across the board made for volatility never seen before. Part of my strategy encompasses intraday trading if conditions meet my requirements, which they certainly did during the last 2 weeks of the month. This helped contribute about 50% to the overall recovery and profits added to the month.
April is currently positioned well and I will be trading predominately EUR crosses but will be scaling back on some opportunities. This will probably reduce the April return but will provide a cushion to build on the March performance.
I will update the investor account in a later post to demonstrate how Darwinex pay performance fees and also what the plan looks like for April in more detail.
Take care out there.