Escher's Active Investment #00: Initialization

We are starting an investment experiment in which we will attempt to actively trade MIDU, a 3x leveraged ETF that emulates the behavior of the S&P 400 mid-cap stock index.  We are initializing this experiment with a hypothetical 1000$ with an initial allocation of roughly 50% equity and 50% cash. Assuming a price of 18.54$/share, we will have 26 shares [482.04$] and 517.86$ in cash.

After experiencing a crash, the mid-cap index has increased substantially from a low of 6.73$ in March.  With the United States, and the world, facing economic and social challenges stemming from the COVID-19 pandemic and death of George Floyd by police, the trajectory of the market is uncertain.  We shall see how thing evolve.

Comments

Post a Comment

Popular posts from this blog

Chi Gas falls as supply contracts

Image
Monday, 2021-08-02 11:05 AM CT. The last transaction of Chi Gas on Uniswap V2 traded at a price of 1.9664e-4 Eth/Chi, paying a gas price of 42 gwei on the Ethereum network. The price of Chi has fallen in spite of seemingly elevated gas prices and contracting supply (2,101,973 CHI).      To make a transaction on the Ethereum network, users must pay a fee denominated in "gas". The amount of gas that is paid is dependent upon the complexity of the transaction. A transaction that simply transfers tokens from one address to another will require less gas than a transaction that utilizes smart contracts deployed on the Ethereum block chain.
Read more

The first exchange

 "Change is coming and we need to break free.  We must become independent." Her eyes reflected skepticism and uncertainty. "You have the means of production and the expertise.  Food is necessity and yours is good.  We need you",  reasoned Edmund. "What am I going to do with gold coins?  I can't pay my bills or buy anything with it," she finally replied. "Ok, how about I pay half in gold and half in money.  Then if you need anything, you can always trade the coins back to me.  Consider it a promise, a record of debt.  Alternatively, you can also sell it at the Gold Nugget in town if you really need." "You know you're not being very convincing, but ok.  Let's do it.  What do you need?" "Today, leaf lettuce, cucumbers, and tomatoes, 20 pounds of each.  And then 20 pounds more every week this month.  Can you do that?" "Yes."   Edmund walked away with Summer and Alex, the gravel crunching with each step. ...
Read more

Escher's Active Investment #01: Positive move, first sell too soon?

Image
We started an investment experiment on June 12th, 2020, in which we will attempt to actively trade MIDU, a 3x leveraged ETF that emulates the behavior of the S&P 400 mid-cap stock index.  We  initialized this experiment with a hypothetical 1000$, with an allocation of 26 shares, assuming a price of 18.54$/share [482.04$] and 517.86$ as cash. A bit unexpectedly, the MIDU made a move up today.  I initially guessed that it was going to go down, with the futures market early Monday morning suggesting so.  However, MIDU gained and kept gaining.  We decided on a one-share sell @ 19.80$, realizing a nice bit of gain.  But did we sell too soon?  If we want to maximize the potential gains, we need to be able to ride the swings, heavy swings.  The cost of attempting to maximize these gains is the increase in risk--the potential for loss or missed opportunity.  I don't think anybody knows what's going to happen day-to-day. At the time of the ...
Read more