SQRT 20230711

This letter is exclusively for our StraBerry users. We kindly request that you do not circulate it.

Welcome back 👋

Welcome back to the StraBerry investment letter series!

If you're currently reading this from somewhere in the Land of Morning Calm, I hope you're staying warm and dry despite the 🌧️ ☔ ⚡ outside.

This edition will be relatively short for two reasons: Firstly, Yi Sun-Sin has been performing well, so there isn't much to add in terms of its performance. Secondly, we'll be sending out our comprehensive quarterly newsletter in the coming week, which will contain more detailed content. Consider this letter a pregame to the main event!

In the meantime, don’t forget to stay updated on your personal trading activities with Yi Sun-Sin, updated daily at 12:05pm KST(

HERE⁠

Without further ado, let's dive right in.

Performance Review: Yi Sun-Sin

Trading period: 2023-05-19~2023-07-10 (53 days)

Average trade count (daily): ~1800 times

Average size of trading universe (daily): 30~40 cryptocurrencies (*)

⁠

The Triumphant Rise of Yi Sun-Sin

Between 2023-06-23 and 2023-07-09, StraBerry achieved a notable performance of +8.2%, propelling it into positive cumulative PnL territory as of 2023-06-30. No stop-loss was triggered during this period.

Experiencing a +40-day underwater period with a maximum drawdown (MDD) as high as 10% since the high water mark was set on 2023-05-19, literally the day Project StraBerry kicked off, has truly tested the resilience of all those involved.

The moral of the story: You’ve made it through!

Track Records Speak Louder Than Words

The confidence of Yi Sun-Sin as a strategy stems from its real-trade track record spanning over two years. This is all the more true considering that in trading, past performances do not predict or guarantee future results.

A strategy's past behavior against various real-market conditions, while not indicative of its future performance or risk, can be a valuable resource for gaining a deeper understanding of the strategy’s characteristics.

For instance, let's take a journey back in time to the first half of 2021. Between April and May, Yi Sun-Sin experienced a significant MDD of 20%, remaining underwater for more than 30 days. (Sounds familiar much, StraBerry’ers?) As you can see in the chart below, its performance was closely mirroring that of BTC and the overall market.

⁠

However, starting from late May 2021, Yi Sun-Sin began to diverge from BTC and the broader crypto market, showing quite exceptional growth of over 100% by the end of the year. Observing historical patterns in the strategy's real-trade performance and drawing relevant parallels can help navigating the turbulence of today's market conditions.

⁠

Quick Reflections

It is no secret that portfolio managers (and investors like yourself) face significant challenges when their strategies encounter periods of underperformance. Just like investing in stocks, it’s crucial to maintain confidence in the chosen strategy without letting too much emotion get in the way and hold onto it while actively monitoring its performance.

While we all know that past performance does not guarantee future returns or risks (you’ve probably heard me saying this 10x by now, but I cannot emphasize this enough), how the strategy actually behaved and performed in the past against various market conditions, aka the strategy’s real-trade track record, can provide valuable insights into its strengths, weaknesses, and potential risks. It can guide you in your decision-making process and possibly give you some peace of mind if you need it.

As we move forward, you will continue to encounter both challenges and uncertainties in your investment journey. And of course, some really good days when you’ll feel like you just love trading so much. ;) I believe the experience gained from navigating through such ups and downs will help you prepare yourself for future opportunities.

At SQRT, we’re committed to continuing to adapt and evolve. With its robust track record, we’re confident in the continued success of Yi Sun-Sin. #lfg

With gratitude and excitement,

Your friends at SQRT

Welcome back 👋

Performance Review: Yi Sun-Sin

Quick Reflections

Want to print your doc?
This is not the way.

Try clicking the ⋯ next to your doc name or using a keyboard shortcut (

CtrlP

) instead.