While the month began on the 1st, our strategic execution did not commence until January 12th. This intentional delay was due to the extended holiday season. We prioritized waiting for a "normal" full week of market activity to establish a reliable baseline before committing capital to the first trade.
The month was characterized by a predominantly bullish bias, with six out of the seven executed trades being long positions. The strategy showed strong efficacy during the middle of the month, capturing significant upside moves on January 29th and the morning of January 30th, yielding gains of 42.00 and 39.75 points, respectively. These two trades alone served as the primary drivers of the month’s profitability.
However, the session on January 15th presented a challenge when a short position resulted in a 20.5 point loss, suggesting that contra-trend moves were less reliable in the current market regime. Risk management remained disciplined throughout the period, as evidenced by the final trade of the month, which was closed out with a negligible 1-point loss to preserve capital during an evening session.
Overall, January proved to be a successful month of selective trading. By exercising patience in the first two weeks and sticking to a high-conviction long bias, the portfolio managed to navigate both high-momentum breakouts and minor pullbacks effectively.
Key Performance Metrics
Total Number of Trades: 7
Win Rate: 57% (4 Wins / 3 Losses)
Total Net P&L: +77.25 Points
Largest Winning Trade: 42.00 Points
Largest Losing Trade: -20.50 Points
Average Trade Result: +11.04 Points