A Deep Dive into My Q1 2021 Trading Performance

As we look back at the first quarter of 2021, my trading portfolio has had a remarkable performance, achieving a significant rise of 62.94 percent since its establishment in 2013. This has been the highest quarter of my last decade’s portfolio valuation.

Summary of Q1 2021 Trading Highlights

Throughout the first quarter, I managed to increase my trading portfolio by approximately 24K out of a total fund of 200K. The results were overwhelmingly positive, and I aim to share some of the key strategies that led to this success. Let’s break down the various aspects of my trading performance.

Effective Trading Strategies

Automatic Strategies: One of the mainstay strategies that proved fruitful was the monitoring of overnight spreads between various special acquisition companies (SPACs). By automating this process, I was able to scalp profits without much intervention. Additionally, I employed a combination of straddle and strangle option strategies ahead of earnings announcements for volatile firms. With these strategies, I managed to capitalize on the time value of options.

Macro Publications: I focused on macro publications that caused volatility in various assets, particularly those related to unemployment and foreign exchange (FX) due to Brexit. All these strategies were automated, allowing for consistent and timely adjustments.

Airline Laggards: Leveraging the binary nature of the airline industry, I identified that cash-rich airlines recover quicker from closures and lockdowns, which was instrumental in my gains. This strategy provided substantial returns, and it was one of the highlights of the quarter.

Rights Issues: Participating in rights issues for firms in dire need of capital proved to be a strategic move. For example, I invested in junior lithium miners like KIS:ASX, which were benefiting from the 'Green Electricity' boom. The discounts provided during these issues allowed for significant arbitrage opportunities, leading to substantial profits.

Coins: While not entirely aligned with traditional investing, I indulged in a variety of cryptocurrencies. Despite not being a believer, these investments proved to be a significant source of return. The short-term gains from other trades were reinvested in coins, allowing me to hedge my risk while leveraging potential gains.

Corona-Related Strategies: Some trading strategies were based on the evolving landscape of the Corona pandemic, including investments in funeral-related firms and testing kits. However, these strategies proved to be hit-or-miss, with one notable loss from an activist investor-driven portfolio.

Lessons Learned

While the overall performance was positive, some strategies did not yield the expected results. For instance, investing in Roblox and other highly shorted stocks did not pan out as anticipated due to both luck and strategic missteps. Similarly, testing kits for Corona were successful initially but turned sour due to activist interference and changing government regulations.

Other strategies that didn’t perform well include investing in listed funeral firms and attempting to profit from correlations between shorted stocks. These lessons underscore the importance of careful risk management and flexible adaptation to market changes.

Strategies for Improvement

Looking forward, there are some strategies that I should have pursued but did not due to time constraints or incomplete due diligence. For example, shorting Deliveroo at its IPO could have been a lucrative opportunity given its questionable business model.

Additionally, I highlight some lucky trades, such as the modest 7-figure profit from GME and the unexpected gains from UEC, which were a pleasant surprise.

Conclusion

Q1 2021 marks a remarkable period in my trading history, with a significant rise in my portfolio value. While I aim to maintain a balanced perspective, recognizing the impact of luck and careful strategic planning, the strategies highlighted in this article provide valuable insights into my trading approach.

For those interested in the nuances of trading, these experiences offer a flavor of the various strategies and opportunities that are available in the market today.