SPODD500 celebrates it’s 1 year Anniversary at Collective 2 with a 24.2% annual compound return. The SPY closed at 295.66 on July 1 2019 and closed at 310.52 on July 1, 2020 (a return of 5.02%).
SPODD500 is proud to present a return of nearly 5 times that of the S&P 500 for the same period and we did it with less exposure to volatile market conditions by being in a trade only 40% of open trading days. Presumably, investors would be in cash, or interest bearing money market funds during 60% of open trading days, increasing their yield but with an overall smoother volatility curve.
SPODD500 is a great vehicle for trading in IRA and Cash accounts where investors are seeking less exposure to market conditions (by remaining in cash most of the time) while still seeking superior returns to the S&P 500. We do this with limited time in the leveraged SPXL or SPXS triple bull or bear funds - but take very selective trades for short time-frames from 1 to 4 days at a time.
The SPODD500 drawdown occured at a time when COVID-19 took a big bite out of the market. SPODD500 was able to contain the continued slide in March to a loss of only 7.8% for a month when the market saw a total loss of 34% from it’s peak to it’s bottom in March. Admittedly we had on too large of a position going in to the volatility but were able to mitigate the losses with stop loss orders. We made adjustments to our formula to lower the amount of funds dedicated to the strategy where we reduce our exposure to big losses by a larger degree when volatility sets in. But still, we managed to do well for those who bought in to SPODD500 early and hung on through the market rebound.
We would like to thank our subscribers for their continued business and wish you all much success in the next year with SPODD500.