The HFEA strategy improved significantly in June as I continued accumulating SPXL at lows and trimming TMF (at some point I plan on abandoning TMF completely. It didn’t protect my portfolio at all, so I plan on using SPXL only).
Originally, 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. We will be rebalanced quarterly, and our next rebalancing will occur at the end of June 2022.
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.
| 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% |
Our HFEA strategy lost -9.24% in June 2022 while the entire market lost -15.92%.
HFEA charts
Strategy Net liquidation value
Strategy vs SPY Net liquidation value
Strategy performance vs. SPY
June 2022 turned out to be a good month ever for this strategy as the SPXL helped boost the account while we trimmed the TMF fund. I will be slowly re-allocating 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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