I Survived The August 2011 Crash

I rely on mean reversion both in my value investing strategy and for my trading strategy. A 20% move in a straight line is a mean reversion traders worst nightmare. Many records were broken over the course of the past two weeks and not good ones.

While I have had a bit of a drawdown, it could have been a lot worse. I was patient with my adds, did not get too large and did not panic even though I was close. I used the rally of the past two days to take off some positions put on Monday and Friday. On net I took slight gains on those position. I was originally looking for more from those position but right now I'm just happy to have survived and wanted to take some risk off. Have a great weekend.

1 comment:

Anonymous said...