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Long Short Portfolio Now Hedged Using LONG RWM

Just wanted to announce to sims and potential subscribers, I will no longer be trading micro-futures, or short positions to hedge the portfolio. Instead I will be using RWM, which achieves essentially the same goal.

RWM is the ‘inverse’ Russell 2000 index ETF. So every time the Russell 2000 moves down RWM moves up by (near enough) the same percentage.

Effectively, if I am long $60K in my selected stocks, I will be long around 75%-100% (depending on the strategy rules I employ) in RWM… so always three-quarters or fully hedged against any major market reactions (which is an integral part of the strategy, aimed at keeping any drawdown minimal).

Anyway, using RWM allows any investors who do not want to trade ‘short’ instruments or futures, to enjoy (and hopefully profit from) the hedged strategy.

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