August has been a rather quiet month – and that’s exactly how I planned it. After some crazily busy months in June and July, August was full of beaches, coconuts, rides with my motorbike, playing with my little pup, sunsets and other joyful events.
Of course, I also kept on working on my multiple workstreams and generated enough profit to keep me going here in beautiful Bali. In the back-office, I’m still working on making my DSL Trading workstream profitable and might have discovered a new and refined strategy that makes it possible. We’ll see in the next weeks and months to come.
So, let’s review what was going on in the Dan Schenk Life. Goals, Profits and Losses as usual below.
I hope you enjoy my entrepreneur recap for August. Let me know any questions or comments in the comments section below
Table of contents
- Personal Update
- My monthly goals
- 1. DSL Trading: Proof of Concept on Demo Account
- Workstream Overview
- Dan Schenk Life
- Profits and Losses
- Overall Portfolio Performance
- DSL Trading
- Consulting with Tritium Growth Partners
- Cash Flow Overview
- Outlook for September 2020
August finally brought some long-awaited time off.
End of July I finished two major projects for two clients with Tritium Growth Partners, so in August I was able to find some relaxation here in beautiful Bali.
Meaning, I went to the beach a lot and even visited the Zoo.
Living life at its fullest. Could easily keep going like this for a few more weeks. Let’s see. Either I ramp up my work schedule again in September or I just take it a bit more chilled for the rest of the year. I’ll decide as I go along.
My monthly goals
On to my monthly goals as outlined in my previous Entrepreneur Recap. Only one goal set for last month, cause I wanted to have a bit of time off. Worked out well, I had my time off and completed my goal. Like it that way.
1. DSL Trading: Proof of Concept on Demo Account
After having had heavy losses in my trading workstream in July, I took a step back in August and went back to the Demo account to test some new strategies. Overall successful. I found a strategy with a positive reward expectation, which I will now try in Live environment during September. Once it is proven in Live, then I will be picking up the weekly DSL Trading recaps as well again.
Here you find an overview of my ongoing workstreams, which are Dan Schenk Life, Investing, DSL Trading and Consulting with Tritium Growth Partners. Under Dan Schenk Life I’m grouping all sorts of income-generating streams and not just developments on this very website.
Keeping myself well above the £5,000 threshold again last month. Keeping things going for now and gives me room to breathe, while trying to get my DSL Trading workstream into the profit zone.
Total Profits (all workstreams, excluding any gains/losses from investments): £5,526.46
Dan Schenk Life
dan-schenk-life.com didn’t make any profits or incurred any costs as usual.
Also, I unfortunately only posted my monthly Investment Portfolio Overview and not my Entrepreneur Recap, cause I didn’t have all the data together for the latter. So I had to finish this off and post it in September, bit delayed.
Now, that I have a bit more free time available again, I’m thinking to spend more time on DSL, but not sure yet in which direction I want to go here.
Ideally, I’d sort out the DSL Trading workstream first, then post loads of trading related content. I would have a big pipeline of content coming there.
Let’s see how it develops over time.
Profits and Losses
You can see my full monthly portfolio review here. Top-level stats below.
Loads of things going on in August in my Portfolio. I entered three new positions and sold two of my existing holdings. I also came out first in terms of monthly performance against my benchmarks. Momentum was definitely on my side in August. I’m having solid cash-reserves, which I’m looking to get into the market during the rest of the year and hoping to not only break-even on the annual performance but even making a nice profit after the Corona Disaster in the First Quarter of the Year.
Overall Portfolio Performance
July 2020: 8.1%
YTD 2020: -4%
Alright, so in August, I was testing and refining some strategies on the Demo account.
The small profit on the month is just from a position that was overlapping from the previous month.
Other than that, I didn’t do any trading in my Live account.
So, how did the testing on Demo go then?
Well, it’s been a slow month in the markets as August usually is, so the testing was getting on a bit slower than anticipated as well. However, in the end, I managed to get a significant set of data.
I was focusing on testing gap-up shorts and momentum shorts.
In my tests, I benchmarked various risk-reward ratios against each other: 2:1, 1:1, 0.5:1 and 0.25:1.
It was clear that the 1:1 delivered the best results, although not stellar results. It would’ve finished with only £65 of profits on a £1000 account. The target lies at £500 of profits for a £1000 account, so, I needed to refine a bit further.
If I exclude position adds and just worked with single position entries, then the profit would already be at £335. Not too bad for the rather slow month of August. But can it be even better?
I was thinking, what if I normalise every trade to exactly £200 of risk/reward, how would it turn out then?
And voila, with this we’re looking at £800 of profits. That would’ve almost doubled the account size within one month.
So, for September, I will be focussing on testing this strategy in the Live account. Let’s see what it turns out.
Total Profit: £7.32
Consulting with Tritium Growth Partners
Tritium finally left me some air to breathe in August.
After we finished two major projects in July, August was way slower. In total, we were doing projects for 3 clients, but nothing too crazy. As a result, my profits were a bit lower than the two months before, but as long as I’m still hovering above £5,000 of profits per month, I’ll be fine.
After all, the goal was never to scale Tritium to a crazy size, that’s way too much effort. But mostly getting the DSL Trading workstream up and running, which has the potential to easily 10x those profits with 1/10 of the effort. That’s real scalability.
Cash Flow Overview
Cash Flow wasn’t really on target last month either.
In the end, I only netted £23, which was due to two factors.
Number 1, I still haven’t gotten paid my outstanding invoices from June and July in their full amount. Bit annoyed about that one. Certainly wasn’t expecting that.
Number 2, I have overdone it a bit on the spending side of things in August as well. But it was my holiday month after all. Staying in various places for a few nights, splurging on fancy dinners and other lifestyle activities.
On top, I was splashing out cash for a new Villa here in Bali and paid rent for 2 months upfront. Meaning my cash flow in September must look stellar again.
- Health Insurance + Health Expenses: £53
- Rent: £1,220
- Living Expenses: £1,897
- Travel / Leisure / Gifts: £267
- Business Expenses: £165
- Tritium: £3,500
- Reimbursements: £125
Total Outgoing: £3,602
Total Incoming: £3,625
Net Cash Flow: £23
Outlook for September 2020
So, for September, I haven’t planned a whole lot of stuff. Still trying to wind down a bit from the intense months of June and July.
Although, still some goals planned and I’m especially excited about going back to the Live account in my DSL Trading workstream.
Goals September 2020
- DSL Trading: Proof of Concept on Live Account
- Pay off final debt facility
First of all, I will try proofing the concept of my new and refined trading strategy in the Live environment once again. This will be the stepping stone to re-launching the weekly DSL Trading updates to eventually moving on to Phase 4 and 5 and launching the DSL Trading academy.
Secondly, with expecting to have a well-improved cash flow in September, I’m looking to put that extra cash towards paying off my final debt facility. I was already paying off the first half of my debt facilities in July and now in September, I’m looking to become 100% debt-free. What a good feeling that will be. After that, there will only be two goals in the financial freedom goal section left.
Level 3: Building a savings cash pot accounting for 6 months of expenses (That would be a pot of about £10k with £2k of monthly expenses)
Level 4: Investments accounting for 20 years of expenses (That would be investments of about £480k with £2k of monthly expenses)
Level 3 unlocks you to stop worrying about short-time fluctuations of cash flow, cause you always have at least 6 months of cash available before you run flat.
Level 4 unlocks the need of having any other incoming cash flow sources, except selling off your investments slowly over time. Once you have 20 years worth of expenses invested at a 5% annual return, this makes you £24k annually or £2k monthly. You see, at that point, your investment returns cover your expenses and you don’t depend on any other incoming cash flow stream anymore. Obviously a longer-term goal, but I am aiming to unlock this within the next 5-10 years.
I hope you enjoyed reading this Entrepreneur Recap for August 2020. If you did, you can read other recaps and more content in my entrepreneur lifestyle section.
If you are an entrepreneur out there and you are reading this, please contact me over social or drop me a comment in the comments section below, because I would love to catch-up. I’m also planning to interview other entrepreneurs on this channel, so let me know if you would be interested in that.
And as always, if you have any questions, drop me a comment in the comments section below.
Take it easy!