I have decided that following your equity performance (i.e. including “profits” on open positions) is a fool’s game. It is the industry norm because when you value a fund, you strike an NAV at which investors can exit. Since positions theoretically have to be closed to get the investors out at a fair price, it makes sense to strike that NAV including unrealised profits. However, I only have one investor, me. And what I want is to make money to put into the bank. I don’t care if a trade has made +5%, but dropped back to +4% before I took profits; what I care about is that I took a profit. So I am going to be paying more attention to realised profits and losses (an objection to this way of thinking is that it allows a trader to ignore unrealised losses — but I already know I don’t do that). I have made a performance-calculating spreadsheet to allow me to track both equity (including unrealised profits and losses) and cash (realised profits and losses only). Here is the output:

Cash MTD 0.24%
Cash YTD 0.01%
Equity MTD -1.70%
Equity YTD -1.87%

I have exited the short coffee position for a tiny loss. I decided that it hadn’t presented a good enough buying opportunity and the technical justification for the trade was not strong enough. I have entered a short FTSE 100 trade — trade sheet to follow later.

CURRENT POSITIONS
Long Corn
Short FTSE 100
Short GBP/USD

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