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HFEA July 2022 strategy report

The HFEA strategy continued improving significantly in July. I continued accumulating SPXL at lows and eliminated TMF. Now my strategy will be to accumulate SPXL when the fund drops 25% below my cost basis and trim the gains when it goes 25% above my cost basis. I will save the proceeds for the declines and purchases.

Initially, I dedicated $15,000 to this strategy. That represented approx. 15% of our portfolio. If the strategy underperforms and is below this amount, I will add cash to it. If it outperforms and ends above this threshold, I will trim the position and save the cash aside.

The HFEA strategy is about investing in leveraged ETF but adding protection to the downside since the leverage works both ways. I like the idea because drawdowns can be significant. However, with my adjustment, this is no longer an HFEA strategy. But for continuation, I will keep calling it in my reports.
 

MONTH NET-LIQ PROFIT/
LOSS
PROFIT/
LOSS %%
November 2021 $13,441.91 $0.00 0.00%
December 2021 $14,773.72 $1,331.81 9.91%
January 2022 $12,597.96 -$2,175.76 -14.73%
February 2022 $11,665.69 -$932.27 -7.40%
March 2022 $12,483.01 $817.32 7.01%
April 2022 $8,694.65 -$3,788.36 -30.35%
May 2022 $6,923.49 -$1,771.16 -20.37%
June 2022 $12,199.81 $5,276.32 76.21%
July 2022 $15,551.55 $3,351.74 27.47%

 

Our HFEA strategy recovered all losses by July 2022 and is now up 15.69% while the entire market lost -9.14%.
 

HFEA charts

 
HFEA net-liq 07
Strategy Net liquidation value
 

HFEA net-liq 07
Strategy vs SPY Net liquidation value
 

HFEA vs SPY
Strategy performance vs. SPY
 

June 2022 was a good month for this strategy as the SPXL helped boost the account while we trimmed the TMF fund. I will slowly re-allocate TMF and new cash into SPXL in preparation for the next market rally. When it comes, I expect this strategy to outperform the market significantly.
 
 





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