​If you recall from last report, 2017 was a unique year for the US market since all of its 12 months ended up with a gain. The same momentum was brought into 2018 making January a very strong month.  This time, we not only welcomed this rally but also enjoyed part of this journey in January, thanks to our newly added directional US equity strategy.  

Adapting to the directional US market nature, Derivatix managed to transform what could be a modest month, to a pleasant 4.1% net profit in January. Yes, the S&P500 gained a bit higher at 5.6% level however, we strongly believe in keep spending on protecting our capital’s value even in exchange for lower profit.  Those protections later helped us significantly through the market turmoil in early February and provided us a more manageable volatility. More information would come up in February report.

In overall since inception 29 month ago, Derivatix is up 82.4% net profit while the S&P500 gained 42.7% at the same period. This means that on average, Derivatix’s investors have benefited 28.2% annually after all fess while S&P500’s annual gain was at 15.9% level meanwhile. 

So, how do we see the market forward? The US market is claiming back its long-waited volatility nature after several months of steady upward move. That would help us better execute our original sideway strategy on indices and at the same time implement the recent directional equity system on momentum moves. We are expecting pleasant behaviours from the US market in 2018.

​Last but not least, we are aiming to allocate more time and efforts on educating our audience on different aspects of fund management including the excessive power and flexibility brought in by financial derivatives in managing the market risk. Stay tuned for our future announcements…