Real P&L May 2020

Karl Domm here with the Real P&L Channel and my real P&L update for the month.  We’re going to show my real P&L for the month of May 2020.  As you may or may not know I do trade a particular system in my portfolio margin account.  In order to get an insight on what I do in this larger account, you can purchase my book.  

Over the last 3 to 4 years, I’ve been trying to replicate what I do in my larger portfolio margin account.  And I’ve been trying to replicate it in a regular margin account.  And it’s been a major challenge for me over the last few years.  I’ve back tested hundreds of systems to try and accomplish this.  I wanted to do this because I want to be able to confidently trade an account that has less than $100,000 in it.  

About a month ago, I was finally able to figure this out.  And last month I started trading live with the new system. I called this my smaller regular margin account and I plan on showing my real P&L, on a monthly basis, on this account as well as my larger account.  So stay tuned to see my P&L for both accounts. 

First, I want to take a look at what the market did over the month of May.  We are going to be looking at SPX and, what is this, May first right here.  Well, let’s start with the end of the month and we’ll go to where we are now.  We can see that the market is up about 5%.  In my book d go over the 4 types of markets.  There are the Rising Bull, the Sideways Market, the Grind Down market, and the Crash market.  This I would consider a Rising Bull market.  

So let’s take a look at my larger portfolio margin account for the month of May 2020.  So one of the things you might notice right away is this big drop here and that’s when I took out $25,000.  Because if you remember a couple months back, when they had that drawdown, I added $25,000 to the account.  And I needed to do that to get it back up above $100,000 mark to keep my portfolio margin status, because this trade requires portfolio margin or the way that I’ve trade does. 

So now I’m back to where it was, in terms of how much money I started with $110,100.  And you can see for the month of May 2020, I’m up 4.82% starting here, so I had a really good month and we’re in a bull market.  

Now let me get into my smaller regular margin account.  Okay in my smaller regular margin account, you can see here this is what I started with, $14,382 on May 1st.  And this is when I started this new trade.  Like I said, it’s very similar to what I’m trading in my margin, my portfolio margin account, I’ve been able to kind of simulate in a margin account.  It took me a lot of back testing in a lot of years to figure it out. 

And so here, we started with $14,382, this is a ThinkorSwim account, and ended the month on May 28th.  Lets see if I can go to the 29th, no that’s the last day of the month, May 28th at $14,617.  

So let me do some calculations here.  $14,617 subtract what I started with $14,382, so I’ve made $235 so $235 divided by $14,382; 1.6% this month on a margin account, which is really good.  Times 12 is the annualized, you know, it’s a 19% annualized return, potentially.  

And one of the things that’s really good about this regular margin account and how I trade it is: #1 the back-test showed that it will outperform the S&P, and #2 not only will it outperform, you don’t do it well with a lot less volatility.  You can see that there’s very little volatility here.

So there you have it for my real P&L for my larger account and real P&L for my smaller account.  And if you want to cover a certain topic about my account or anything options trading related in a future video, leave a comment below.  And remember, if you want a credible mentor get their P&L. 

I spend about a minute per day maintaining this account, and 2 or 3 days out of the month I spend about 15 to 20 minutes a day when I actually need to take off and put on new positions.  If you’re interested in how I manage my account, you can learn the 12 principles that I use.  Also you can learn about my trade structure in my book called A Portfolio for all Markets which is available on Amazon and Audible, and I left a link below to my book in the description.

How do I have confidence in my ability to manage money?  I use a tool that can back-test options and stocks, track adjusted positions in real time, help eliminate trade execution errors, and provide meaningful stats.  I use Option Net Explorer.  If you’re serious about managing your money in the market, I highly recommend this tool.  For a 10% discount, just click the link in the description below.  If you’re interested in the details of how I use this tool, I have put together a video and there is also a link in the description below.


A Portfolio for all Markets:

Link to My Experience with Option Net Explorer

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