August saw us hit our first predetermined stop loss, as we saw an increase in volatility across the board as we saw volume increase again after the summer lull. All in all, Ubique was down 0.7% on the month, with 0.39% of that in slippage in fees.
The noteworthy event in August was that our Platinum position triggered a stop loss for us. These are never ideal but are part of the process. As such, our Platinum strategy returned a loss of -4.35%, but with Golden Ratio producing a sold 3.25%, this helped hedge this loss. This, combined with how we allocate funds to each strategy as part of our overall risk management structure, is why we were able to see a worst-case scenario play out and still only be 0.7% down on the month.
Throughout August, we also saw a maximum drawdown of -3.17% which is within the normal range, inclusive of the stop loss hit. This experience has also taught us a lot in terms of how our strategies interact with one another during volatile times, and we are now looking at additional ways of generating alpha from such events.
We now enter the two bogy months of the year with September and October being the most historically dangerous months to be in the market. Knowing this ahead of time, it will be interesting to see how Ubique handles itself over the next 60 odd days. Thankfully, as we are fully systematic, and with almost 100 years of back history on parts of our strategy, we have confidence that we will be able to handle whatever is thrown at us. Of course, time will tell, and the past doesn't guarantee the future, but with the provisions, we have in place, we feel we will be able to survive whatever the markets throw our way!
If you have any questions or would like to know more about anything mentioned above, feel free to get in contact with us, and we'll happily have a chat with you about it.
Until next time, stay safe, and swing easy.
For more in-depth analysis, everything is on the website for inspection (www.willowoakadvisory.com/ubique)