These are the results of 5 systems we have developed and currently run. The goal of this strategy was to run uncorrelated pairs and products in order to smooth the profit curve and maximize the use of capital. To prevent curve fitting they have been tested on 30, 50, 60 and 90 minutes. Each system independently has been proven profitable on all these time frames. The key is not the % return since this is a function of capital employed; one should focus on profit factor and trade profit as a multiple of the spread (commission) costs. Together, these systems have an average profit factor of about 1.6 and a multiple on the spread of about 10 times. They also sport profitable returns across the other time frames.
The percentage returns on the results below assumed maximum capital being employed. Of course, this is not possible in real time so the percentage returns will likely be reduced. However, when all these systems run concurrently, the percentage return will be higher because drawdown across the system is reduced considerably and capital will be employed more efficiently.
What the result will be in real time for all 5 systems combined is impossible to ascertain, after all, forward results do not reflect the historical returns.
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 advanced, financial market knowledge for your employees, or if you are an independent trader looking to truly master the financial markets, we have the solution for you.