Claritech Labs - The Second Income Experiment - 21st to 30th May 2025

Post 3

Performance Stats

Welcome back to The Second Income Experiment by Claritech Labs. In this third part, we are looking at the period 21st May to 31st May 2025. The account is up £216.36. Taking the account value to £8,227.06. At the end of the previous update, the account was short 1 futures of Dax at ~ 23980 and  long two stocks (Vodafone and RWS Holding) which were bought on 14th May 2025.

Tariff news drove a significant amount of upward and downward moves in equity markets. On the Friday before the markets closed for the memorial day weekend, Trump posted about a 25% tariff for Apple phones sold in the US but manufactured outside of the country and mulled a 50% tariff rate for Europe. The market reacted negatively to the posts. I used the downside to exit the short futures position.

Dax Futures - Trades

After the long weekend, the markets begin on a positive note as Trump announced a deferral to the EU tariffs upto July 9th (scheduled to be in effect from June 1st 2025) to allow for time required to negotiate a trade deal. I thought it could be a good idea to re-enter the short futures trade.

However, the index continued its upward move. I did get the feeling that the entry into the trade was early, also wasn’t this taking a more time than I anticipated? I decided to exit the trade at the first opportunity.

On Thursday morning, there was news that a US Trade court blocks all the tariffs announced by the President – the markets cheered. Though the index futures traded it a new high, it looked weak and I considered going short again, but I didn’t. I suppose you could say that I was biased based on the previous experience and wondered if it would be too early. I waited. That was regretful since the index spent the entire day making lower lows. The weakness continued into Friday. There are two ways I could approach this, like I missed out the last couple of days or reminding myself that there will be other days and I really don’t need to scalp every point on the index – that is not the objective.

That was trading on the Dax, it requires time and attention. As for the two stocks, I continue to hold them. Vodafone is up about 10% while RWS is down -5%.

This is how the account has performed since inception and for those who look at risk measures in a trading account, here are some of the statistics. That’s the update for now, this experiment continues.

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