It is the end of the week that I first launched my FTSE 100 spread betting strategies
- Fleabags of the FTSE
- Getting Ahead of Themselves
The strategies are intended to be longer term strategies and I will generally report on performance at the end of each calendar month.
However, as it is the first week of the portfolios and the markets have been fairly turbulent, I have provided a performance update as at the end of week 1.
Getting Ahead Portfolio Gets Ahead
It is not surprising that as the FTSE 100 has fallen nearly 200 points since the portfolio was started that this strategy has worked well. Even after the 4.5% dealing spread charged when the positions were opened, the portfolio is currently over 22% up on the week which is a greater fall than the market as a whole – the FTSE 100 contract used for comparison purposes has increased in value by 14% over the same period.
It is obviously very early days but it looks like the method used in the share selection for the portfolio could have the potential to identify those shares that could be likely to fall at a greater rate than the market as a whole.
Fleabags Get Bitten
Obviously, a strategy that involves going long on shares is not going to perform well in a week when the market has lost nearly 3%, but the performance of the Fleabags portfolio has been truly disastrous having lost 35% of the stake in a week, greater than the 16% that would have been lost on the comparable FTSE 100 contract.
Again, it is early days but it looks like the selection method may be identifying shares that are likely to fall heavily in a falling market and underperform the market as a whole which is quite the opposite of what I had expected.
Putting the two portfolios together has produced a 6.5% loss which is a worse performance than the sum of the FTSE contracts used for comparison purposes (1.2% loss).
This is the first week of spread betting strategies that are meant to be longer term strategies. It is too early to draw any firm conclusions, though the way things are going I would not be surprised to see at least one of the Fleabags bite the dust by hitting their stops in the near future.There are certain performances that can be understood once you’ve played them out so it is better to venture into the game with a nice round of agen slot where you can understand the basic tools essential for playing various games as a practice session so that you can prepare for the bigger games in the trade.