The US market has experienced a very volatile year in 2018 both at the beginning and at the end. Market volatility has two sides for trades. While, it brings new onboarding opportunities for the investors, a volatile market demands a higher level of risk management. Thanks for our constant protections in effect in Derivatix, we absorb much of the down side volatilities and effectively manage the value of the positions compared to the decline in the overall US market.
In the first half of the current quarter of 2018, S&P 500 dropped 5.6%. This reduced the index’s year-to-date growth from 9% to less than 3% for the entire year. At Derivatix, we experienced a moderate 1.9% decline at the same period which in turn placed the 2018 profit at 8% level. Looking longer term since inception, Derivatix made about 90% net profit for the initial investors while S&P 500 grew 39% meanwhile.
It is wise to have protections in place on your assets even during steady periods. You never know when the party ends and the storm hits you; better to be safe than sorry.