May was a positive month for Streamline Trading, with a net performance of +1.17%. Congratulations to the investors who remained long on the S&P 500, which increased by 4.9% last month. The correlation between Streamline Trading and the S&P 500 remains low at 0.12. Our adaptive algorithms, which handle both short and long positions, along with smart diversification across different markets, continue to perform well. The monthly analysis reaffirms the robustness of our 24 algorithms operating in 12 diversified financial markets.
Highlights of the month
- 💹 Performance: our portfolio realized a net gain of +1.17% (+4.40% YTD)
- 📊 Monthly correlation streamline Trading vs. S&P 500: 0.12 since inception
- ⚙️ Algorithm activity: 21 of our 24 active algorithms executed automated trades last month.
- 🌎 Market engagement: our algorithms operated in 10 of the 12 financial markets.
- 🔄 Trade volume: we completed a total of 123 automated trades last month.
- 🛠️ Algorithm performance: all 24 algorithms functioned within their designed parameters and continue to be operational.
- 🌐 Portfolio diversification: we maintained robust diversification with active trading across 12 different financial markets through our 24 algorithms. Additionally, we have added 1 algorithm that is trading the cotton market, bringing our total algorithms operating for next month to 25. This enhancement aims to further strengthen our portfolio of algorithms.
We appreciate the continued support and confidence of our investors. As we move forward, we remain committed to delivering strong, uncorrelated returns through our advanced trading strategies.
Deepdive - Streamline Trading's best performing trades last month
🔼🟡 Long Gold
In May 2024, our algorithms executed several successful automated trades in the gold market. Throughout the month, our algorithms went long on gold a few different times, capitalizing on the rise in gold prices during the first half of the month. Gold prices experienced a notable increase, driven by ongoing geopolitical uncertainties and shifts in economic indicators. Our strategic automated entry and exit points allowed us to benefit from these market movements effectively.
The gold market saw significant volatility in May, influenced by mixed economic signals and Federal Reserve actions. Early in the month, gold prices rallied, reaching highs around $2,450 per ounce before stabilizing. Our algorithms, leveraging historical data and real-time analysis, identified optimal moments to go long on gold, securing profitable trades as prices rose
🔼🔥 Long Natural Gas
In May 2024, Streamline Trading executed several successful trades in the natural gas market, primarily taking long positions. The natural gas market experienced significant volatility during the month, driven by a mix of supply dynamics, geopolitical factors, and weather conditions.
The month began with concerns about natural gas production levels. Despite earlier low prices that had led to slight curtailments, the U.S. Energy Information Administration (EIA) reported that natural gas production remained high, particularly in key regions such as the Permian Basin and the Haynesville Shale. However, there were lower-than-expected injections into storage due to already high storage levels from previous months. This helped maintain higher prices throughout May.
Geopolitical tensions and weather conditions also played a crucial role. Disruptions in LNG trade routes due to geopolitical conflicts, particularly in the Red Sea, added to supply concerns. Additionally, forecasts of a stronger-than-usual hurricane season raised fears of potential supply disruptions, further supporting prices. Increased demand from industrial and power sectors, especially in rapidly growing economies in Asia, contributed to the upward trend in natural gas prices.
Throughout May, our algorithms were strategically positioned to take advantage of these price movements. By leveraging real-time data and historical trends, our algorithms identified optimal entry points for long positions, capitalizing on the bullish trends.
Deepdive - Streamline Trading's least performing trade last month
🔽 🌾 Short Hard Red Winter Wheat
In May 2024, the hard red winter wheat market experienced significant volatility, driven by a mix of supply and demand factors. The USDA forecasted an increase in hard red winter wheat production compared to the previous year, supported by favorable weather conditions and improved soil moisture in key regions like Kansas and Oklahoma. This positive outlook contributed to bearish market sentiment, prompting Streamline Trading's algorithm to take a short position. However, unexpected weather disruptions, including drought, high winds, and freezing conditions in Kansas, along with a sudden spike in demand mid-month, caused a sharp price reversal, leading to significant losses for our position.
Despite this setback, our algorithm continues to operate within its expected performance ranges. It's important to understand that even well-validated strategies can experience drawdown periods without losing their overall validity.
Join Streamline Trading
Are you looking to diversify your investment portfolio? Streamline Trading offers a distinctive approach to help hedge and grow your capital, serving as an excellent way to diversify your investments. Explore how our strategy can complement your financial goals.
Schedule a Call to discuss our approach in more detail, or Request an Information Package to get comprehensive information about what we offer.