3D Bull & Bear Monthly Update: June 2024

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This post was originally published on Trademakers

The last day of the month of June was a great reminder that RISK HAPPENS FAST in the S&P 500. This can be seen in the chart below where the S&P 500 was making new all-time highs (the Volatility Index (VIX) was also making new monthly lows), and then the S&P 500 declined -1.3% in six hours.

How can you prepare for risk happening fast and sharp reversals in the S&P 500? How can you preserve your historic S&P 500 gains and still profit from S&P 500 rallies?

 

The only answer is with the S&P 500 itself. 3D’s clients are using our 3D Bull/Bear Program to help them manage risk in the S&P 500. 3D Bull/Bear is a data driven, global-macro and dynamic rules-based system that only invests in the S&P 500 Index.

 

It is designed to adapt to sharp reversals in the S&P 500 and manages risk in real-time, using trailing and scaling price-based stops and time-based exits. Trailing and scaling price-based stops are used to minimize losses and time-based exits are used to maximize gains.

 

A price-based stop means the market has moved too far against the entry price or retraced too far from its high (for buying) or too far from its low (for selling).

 

Time based exits are used to maximize gains and are designed for 3D Bull/Bear to capitalize on fear, greed and “one-way” moves like were seemingly abundant in both directions in 2023 and April 4, 2024 when the S&P 500 dropped -1.7% in two hours.

 

On June 28th 2024 3D Bull/Bear entered and exited long and short positions. Both positions were exited using price-based stops. By using dynamic data-driven price-based stops, it’s possible to be stopped out of a position at a profit, which was the case for the 3D Bull/Bear short signal on June 28, 2024. Below provides a visual of the S&P 500 and where 3D Bull/Bear entered and exited the long and short positions.

 

This reminds us that RISK HAPPENS FAST (in both directions) and demonstrates the importance of managing risk in real-time and using price-based stops. The origin of the x y axis is the open.

S&P 500 (June 28, 2024)

3d_bull_bear_06_2024_01





  • 3D Bull/Bear enters long position




  • 3D Bull/Bear exits long position (price-based stop)




  • 3D Bull/Bear enters short position




  • 3D Bull/Bear exits short position (price-based stop)

Daily Gross ROR Estimate

S&P 500:

-0.44%

3D Bull/Bear:

-0.06%

3D Bull:

-0.40%

3D Bear:

+0.34%

If you have questions or are searching for a different and proven solution to S&P 500 declines and that is designed to help you:





  • Beat the S&P 500 over the long term




  • Solve the problem of S&P 500 declines




  • Profit from S&P 500 rallies

Contact JPFS for more information on 3D Capital.

Sincerely, Eric Dugan
Chief Investment Officer at 3D Capital Management

Risk Disclaimer

3D Bull/Bear returns are calculated based on an assumed funding level of 25% and 50% of Trading Level and are intended to show the impact that 75% and 50% notional funding respectively has on returns (when those returns are expressed as a percentage of account valuerather than Trading Level). The returns are net of the Advisor’s 1.25% management fee and 15% incentive fee. Fees are charged on the Trading Level of the account. Returns do not include interest income. 3D Capital Management is a unit-based CTA. Per NFA requirements, the addition method is used to calculate annual rates of return because the trading level of the accounts managed did not fluctuate with prior month’s profits or losses. The CFTC has not passed on the merits of participating in any of 3D’s programs nor on the adequacy or accuracy of the disclosure documents. Other disclosure statements are required to be provided to you before an account may be opened for you.

Hypothetical Performance Risk Disclosure: One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. The risk of trading commodity futures, options, and foreign exchange (“forex”) is substantial. The high degree of leverage associated with commodity futures, options, and forex can work against you as well as for you. The high degree of leverage can result in substantial losses as well as gains. You should carefully consider whether commodity futures, options, and forex are suitable for you in light of your financial condition. If you are unsure, you should seek professional advice. Past performance does not guarantee future success. In some cases, managed accounts are charged substantial commissions and advisory fees. Those accounts subject to these charges may need to make substantial trading profits just to avoid depletion of their assets. Each Commodity Trading Advisor (“CTA”) is required by the Commodity Futures Trading Commission (“CFTC”) to issue the prospective clients a risk disclosure outlining these fees, conflict of interest, and other associated risks. A hard copy of these risk disclosure documents is immediately available upon request. The full risk of commodity futures, options, and forex trading cannot be addressed in thisrisk disclosure statement. No consideration to invest should be made without thoroughly reading the risk disclosure document. The CFTC has not passed on the merits of participating in any of the preceding programs nor on the adequacy or accuracy of the disclosure documents. Other disclosure statements are required to be provided to you before an account may be opened for you. Past performance is not necessarily indicative of future results. Trading futures and options involves substantial risk of loss and is not suitable for all investors. There are no guarantees of profit no matter who is managing your money. You should carefully consider whether commodity futures are suitable for youin light of your financial condition. An investor must read and understand the manager’s current disclosure statement before investing.

The post 3D Bull & Bear Monthly Update: June 2024 first appeared on JP Fund Services.

The post 3D Bull & Bear Monthly Update: June 2024 appeared first on JP Fund Services.

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