Markets are resuming normal parameters and therefore we are also resuming our normal trading exposure.
As we predicted, Trump could realistically be elected the new president of the USA and markets reacted accordingly, discounting what was not being discounted, recovering then drastically to prior or even extended levels when compared to trading environment prior to elections day, configuring whipsaw effects we referred to in our last post.
Over all, this event introduced about 40% less volatility when compared with Brexit. Our running strategy reacted favorably with the reduced exposure we decided to have. This means higher returns could have been made with a full exposure, but our main aim at Odysseia Capital is to protect capital and locked in gains. Therefore, even in hindsight, we stand by our decision to reduce risk/exposure during this period.