Hello World Cup Portfolio fans, here's how things turned out in what was a very difficult trading environment in Q2.
But first, let's start off with some positive news. As you may know, we trade six different markets and out of those six markets we made profits in three of those six. The profits in corn, wheat and soybeans, while very good, were not enough to make up for the losses in the other three markets. The other three markets were, for the most part, in trading ranges and very choppy and difficult to trade for the entire quarter. The markets in question are crude oil, gold and to a lesser extent, the Dollar Index.
| PAST PERFORMANCE: | ||||||
| 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 |
| +501.6% | +48.5% | +35.3% | +186.7% | +57.6% | +77.1% | +135.8% |
Past performance in no guarantee of future performance. Losses can and do occur.
We have never had a losing year in the World Cup Portfolio. In Q1 of this year, we had a really good quarter with a gain of around 23%. In Q2 we gave it all back in extremely difficult and choppy trading conditions, which puts us flat on the year.
Let's take a look at which markets we made money in and which markets we lost money in, along with the reasons why.
Winners
Corn + $2,075.00
Wheat + $4,050.00
Soybeans + $1,387.50
The reason we made money: All three markets exhibited trending characteristics in Q2.
Losers
Crude Oil -$5,920.00
Gold -$8,901.50
Dollar Index -$4,494.00
The reason we lost money: All three markets exhibited choppy, trend-less trading conditions in Q2.
Out of the last 32 quarters, we have had only six losing quarters. This past quarter was one of those six negative quarters for this portfolio.
It would be nice to see profits every quarter, but that's not always what happens no matter how smart or big your portfolio is.
The World Cup Portfolio had a terrific start to the year, but followed that with a disappointing Q2 which put us flat for the year. The results generally reflect a non-trending market environment.
You can find out about the World Cup Portfolio and our next day trading signals right here. Plus, you can see the trading rules for this portfolio and all our previous yearly results.
This question always comes up when we have just gone through a bad quarter, "Why don't you change your methodology and your approach to the market so you don't lose any money?" That's a valid questions, however the reality is, if you stick to your guns with a strategy that has proven itself over time, you will make money.
I have seen too many traders blow themselves out of the markets reconfiguring and finessing their strategy to suit a particular moment in the market. The problem with that approach is when the markets change back, they find themselves zigging when the market is zagging. That's when they lose everything.
Only by having a solid, systematic, market-driven approach can you, in my opinion, consistently make money in the markets.
I look forward to reporting more positive results for Q3.
Every success in following and trading MarketClub's World Cup portfolio in Q3, it should be a great ride and a great quarter.
Every success with MarketClub,
Adam Hewison
President, INO.com
Co-Creator, MarketClub
