The emergence of Coronavirus disease (COVID-19) interrupted life as we know it. Equally, securities markets were affected. In the beginning of 2020 South Africa was yet to experience the full might of the virus; but on February 24 the dominoes started to fall in the Johannesburg Stock Exchange (JSE).
As a Systematic Trend Follower I have an obligation adhere to the set parameters, particularly stop levels, and to bend with the market. I sold ALL my shares, took a 20% loss on equity. Some stop levels were hit, luckily some position were still somewhat on profit. I was in cash position for about two weeks before the System started churning signals once again.
Despite the signals, the risk of ruin table paints a grim picture. In addition to working twice as much to break-even, trading costs also take a toil on the account. Just over 6 months, I have broke even, from here it's profits! Unless Mother Nature cooks something as a surprise.
I will be sharing the trades that took me out of the woods, till then happy trading.
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