2006 review

Since August 2006, I've been posting "Index Gambling"
trading records at goofiz.com. However, due to restructuring
of the goofiz.com web site, these blog articles are lost.

Here is a review of these 5 months' trading:

Performance:

Aug, 2006: 4.1%
Sep, 2006: 3.0%
Oct, 2006: 6.0%
Nov, 2006: 1.7%
Dec, 2006: 2.1%

5 Months Total: 16.9%


Trading started August when market volatility is much
higher than today (IV was ~15+ in Aug, it is ~10 today).
As market went up, volatility went down. This directly
contributed to the performance data above. i.e. Nov and
Dec performance numbers are lower than those of Aug,
Sep, and Oct.

If market keeps at the current elevated range, I would
continue to expect lower performance numbers. Lower
performance number is usually accompanied with lower
risk. This is necessary to prevent sudden market movement
from causing significant drop of portfolio value.