The system above is fully automated and shows a back test of 13 years and a forward (real-time) test of 9 months (as of Nov 2019). Results from the real-time test closely approximate that of the back test.
We will be offering this system exclusively to our alumni by the end of the 2020 calendar year. If you would like more details about subscribing, email us.
The success of this system can be attributed in part to the following 5 principles:
1. Buying retracements along the long-term trend (We avoid break-out trades);
2. Using profit targets which are 1.5 to 2.5 times the stop-loss targets (we use adaptive profit targets);
3. Hedging long positions with short positions (this reduces drawdown and improves the % return);
4. Focusing on profit per trade rather than the profit/win ratio.
5. Ensuring a profit per trade of approximately 7-10 times the commission/spread cost.
Disclaimer: Although the above return does account for slippage, spread and financing costs, past performance is not indicative of future results. In flat markets the system does not perform as well as in strongly trending markets. Also, and perhaps most importantly, the percentage returns posted are based on optimal use of capital. In the real world, this is not possible. For example, If one were to put twice as much capital into the system, the return would be half of the return here posted. Therefore, one should focus on the return per trade and the number or trades to identify whether a system is likely to be profitable in the future.
Why you should consider using systems like this...
If you have a busy career, then point-and-click day-trading is likely not a viable option for you. However, there are still ways you can profit from the markets. In fact, using automated trading systems might be your best bet because they remove much of what prevents most traders from succeeding - the human factor!
The sobering truth about trading is that so many would-be traders fail because they lack emotional control. Automated trading systems eliminate this issue. And for those who would rather avoid the intensive amount of time and labor involved in developing a successful trading algorithm, we will be offering our clients exclusive access to our trading systems. If you would like to learn how to code successful trading strategies, or profit from the system above, contact us.
The success of this trading system is the product of a significant amount of statistical know-how, coding expertise, and of course, trading knowledge. We do our best to avoid curve fitting: we don't optimize parameters and we test our systems over 15 years in multiple time frames and market conditions to ensure we don't have rude surprises going forward.
Should I Try Algo Trading?
There are several reasons why every aspiring trader would benefit from doing some of their own programming. First of all, there are a variety of simple to use development/trading platforms, such as Tradestation, Zorrotrader, MT4, etc. Secondly, many traders are unsuccessful because they trade with emotion. If you have such issues - and most do - algo trading will help immeasurably. Thirdly, the moment when one starts to see that many of the strategies that people regard as 'successful' are actually wrong when they back-test them, they will have learned a very powerful lesson about life and trading. (The trading community is replete with erroneous cliches. Ultimately, trading is a business of managing probabilities. But one cannot understand these probabilities until they have tested their trading ideas empirically.
Below, are some swing trading systems that we developed using solely custom made technical indicators.
Sobering Facts about Trading and why you should consider automated trading
About 80% of people who set out to trade actively will blow most of their account within the first year. For the most part, this is due to two main reasons:
You are competing against machines which are faster, and sorry to say, usually smarter.
The machines account for over 85% of the volume on major stock and futures exchanges. Still, people will continue to try their luck as point and click day-traders. If you’re not a dreamer, and you are highly motivated and can focus for at least 3-4 hours a day, you can succeed. But most people don’t have that luxury of time, nor the personality traits necessary to win over the long term.
If you represent a financial institution seeking training for your employees, or if you are an independent trader looking to truly master the financial markets, we have the solution for you.