As an ongoing feature of this website, we decided that we would go the extra mile and track the performance of a large number of long term established Commodity Trading Advisors (CTA’s) reported by the NilssonHedge crowd-sourced CTA database.
May 2019 saw another positive performance result for the Commodity Trading Advisors as a group. This is the fourth consecutive month in a row for positive returns in the CTA Composite Index (12)....however despite the solid performance of the CTA's as a whole, we saw a slight negative result for the Trend Following Global CTA's.
Well thank heavens that 2018 is over. There were ups... downs....whipsaws....phantom bonanzas....you name it. That is as much as I would like to say about it in general....but the point I would like to make for 2018 is .....does a year really matter in the context of my heady aspirations of wealth building while swinging in this hammock?
While offering nothing to crow about, a flat return from the systematic trend following funds for the month is certainly a welcome result considering equities represented by the S&P500 TR Index (Total Return) plummeted 7.7% in November which added to the pain of Septembers plunge bringing the S&P500 TR Index to a 12.2% drawdown from it's equity high in August 2018.
October 2018 has tested the resolve of trend followers where we have suffered a similar fate to February 2018 and have witnessed a fairly nasty whipsaw in Energy, Fixed Income and Equity markets. Given that we had just caught the waves of September's volatility surge....all our hopes for the emergence of some good enduring swells in our direction were shattered as mean reversion started to enter the mix as markets rebounded sharply from their maximum adverse excursions resulting in some crazy double-up formations and some spectacular wipe-outs.