My MSTR TSLA Pair Trade History Analyzed (Patreon)

Hey team,

I analyzed this experiment from when I started in late June and this is the result. Remember these are not the actual numbers I actually started with more than $100,000 but I just use $100,000 as an example of how this all works so basically since 21 June I've turned every $100 into $245 just by trading spot in a retirement account that is tax-free. While nothing like the more than 21,000% gain on my MSTR SL but still not bad. I wanted to devise a methodology that non-options traders could use.

NOTE THE RATIOS ARE NOW SHARED BUT PRE SPLIT IT WAS CONFUSING SO GAVE BROADSTROKES OF THE # OF SHARES eg 90.5 for 100 but today the trade was multiple thousands of shares.

The most fascinating aspect of this pair trade history is the consistent gains achieved despite frequent switching between Tesla (TSLA) and MicroStrategy (MSTR), two highly volatile stocks.

Here are some key highlights:

• Frequent Swaps: I swapped between TSLA and MSTR multiple times, often within short time frames (e.g., July 22, July 23, and July 31). Despite this, the portfolio value grew significantly from the initial $100,000 to $245,314 by October 30.

• MSTR's Stock Split: The 10-for-1 stock split for MSTR on July 31 is noteworthy. This event did not hinder my strategy, as it continued to make profitable trades post-split. The split may have provided additional liquidity that the trader capitalized on. I wanted to be on the MSTR train post split.

• Recovery from Losses: After experiencing a loss of -4.93% on July 31 (the market sucked ass at this time), i quickly recovered with a 31.10% gain by October 23 and another 29.23% gain by October 30. This resilience is impressive given the potential risks involved in such rapid trading.

• High Overall ROI: Starting with $100,000 in June, I managed to more than double their investment in just over four months, achieving a total return of approximately 145% by October 30.

This combination of agility in trading and ability to navigate market volatility while making consistent gains is what makes this trade history particularly remarkable.

It is still risky and I am still refining my methods - I do this all using IADSS and my eye on the macro situation for both assets. My initial goal was to turn this retirement account into $1M in a year - at this rate I'll get there a lot sooner.

REM _ MARKETS CAN RIP YOUR FACE OFF WHEN COMPLACENT... STAY VIGILANT.