The DTM5 strategy was officially launched on may 15th, 2020 with two sectors targeted as Macro Silos to work in:  Gold (The ‘Return of the King’ Thesis), and Cryptocurrencies (‘Digimocracy’ Thesis).  See this post for some more info  https://dtm-5.blogspot.com/2020/12/the-two-current-dtm5-thesis.html

A Refresher –  The DTM5 is a long term (10 year) focused (maximum 5 position) strategy that invests in micro and small cap stocks as well as ETFs in specific sectors in which DTM5 has a Macro upside thesis. 

The DTM5 strategy is being funded from cash flow of other entities – aka, dollar cost averaging.   It seeks ‘Leverage’ in investments, and applies some ‘special sauce’ (management and balance sheet detective work) to determine ‘Merit’.

Why has the DTM5 been created?   

• I’ve been looking for a way to combine my business knowledge as a former market professional and now mid size company CEO together into a new business venture.
• I chose to create a ‘strategy’ as opposed to a ‘company’ to be able to overlay the strategy on both personal and corporate investments
• The advent of covid-19 created a massive economic disruption which is serving to redirect and accelerate change – which in my opinion is a great time to launch a business / strategy

The first investment made on May 20 into the Horizons Beta Pro Canadian Gold miners 2X Leverage ETF.   This was a matter of getting my feet wet – I was looking to get some upside leverage on the gold sector as I completed the research and rumination on other positions and on the other Macro Silo (Crytpos).  That ETF trade was closed fully by Aug 14th at a nice rate of return (19.7%)

By September the gold positions were determined;  And by the end of October the Crypto positions were determined.  The weighting at this point was 40% Crypto and 60% Goldish (there is some other metals exposure in the gold position) 

But how things change!  The strategy weighting has morphed to 60% Crypto and 40% Gold as of today.   Basically, a combination of taking profits off the gold table and then increasing exposure to Crypto as a result of the ‘best opportunities’ philosophy.   And it turned out to be a good move.

The Gold market has been cooperative;  In particular the MicroCap developers that DTM5 has targeted.  The Crypto Market has been Berserk.  A ton of fun but absolutely insane ex-girlfriend level crackers crazy.  As a result, as a result of volatility I’ve been obligated to trade earlier and far more than anticipated based on some of the factors outlined in the post https://dtm-5.blogspot.com/2020/12/long-term-macro-investing-and-tradinga.html

Who thought I’d be re-balancing the strategy so early, focused on ensuing the ‘long’ exposure stays strong while attempting to cut away some of the risk?  At this point, it probably cost me a little bit in terms of upside return;  But, so far this has been a one way ticket (up) and I’ve been able to take some of that goodness (profit) and build bigger positions in other parts of the strategy at what I think are amazing prices while taking profit & risk off the Crypto table.   

In summary, it has been a great year to launch this strategy.   As in life, luck has a role to play in all successes.  But its nice to occasionally pat oneself on the back and remind oneself that ‘Fortune Favours the Bold’.   

However, I am also reminded of the Chinese proverb ‘good luck, bad luck, who can tell?’

Despite strong performance, I was hoping that I’d get a longer run out of the gate to dollar cost average into the positions before we saw the kind of move that Crypto is making (parabolic to the upside).  However, that being said, the DTM5 is looking 10 years down the road, and high volatility, especially to the downside, is to be expected along the way.  And it may arrive sooner than later.  Lots of position building opportunity ahead.  

The big performance ‘reveal’ is coming on Jan 1st!   I’ll also share my portfolio allocation and perhaps in future posts I’ll dive into how each position found its way into the mix.   

Until then, Hope everyone had a great Christmas, Hanukkah, Kwanzaa, Festivus or whatever it is you partake in!  Good Luck to all from the Maneki-neko!