After initially losing heavily from the crypto sector taking a huge hit earlier this summer, the initial Bitcoin stop-loss was triggered as we moved back into a profitable position.
We had previously intended to buy and hold crypto assets, even adding Ethereum to the portfolio, but on reflection we thought that maybe buying and holding for the long term wasn’t really in the spirit of learning about trading and all the exciting strategies, and we took the stop-loss as our queue for a change in direction.
Although we have clearly missed out on the recent spike to record levels, we are still comfortable with our decision.
So going by where we stood a couple of months ago, it was nice to pull out of the crypto trades actually back in the green.
As for the other two positions, as much as we thought a completely clean sheet would be best, both assets are still shooting up extremely fast.
Cloudflare: After buying at the end of June, the price climbed steadily until going into overdrive from the beginning of October. Currently we have a 107.32% profit which is by far the best result from the Tradeback experiment. Until there is any kind of a turnaround we will continue to hold.
Vanguard S&P 500: Again this asset continues to rise, although not an especially quick level. The global recovery from the Covid-19 pandemic will no doubt help push the biggest companies in the US forward for quite some time. Currently we have a 10.97% profit and, as with the Cloudflare position, we will sell at the first sign of a downturn.
The Coming Weeks
The overall portfolio is currently valued at $295 from a starting bankroll of $250. It’s a shame that we backed out of the crypto positions when we did but there was still a lot of uncertainty about the coming months for the sector. An 18% profit is a great start to the project and, considering how much we’ve learnt, it is completely unexpected.Don’t forget to check back in next week when we will start to detail some more in-depth strategies for our portfolio. Every buy and sell so far has purely been down to the big picture and our assessment of what the long-term prospects look like.
In the coming weeks we will investigate the possibility of much shorter term trades where we look to get in and out in a much smaller time frame, possibly intra-day. We will also assess if our current bankroll is sufficient to copy trade with a real skilled trader who has a record worth trying to emulate.
