Hypothetical Monthly Returns (includes typical commissions and system fees)
|Strategies||Buy undervalue, Sell overvalue, Technical analysis, Volatility trading, Arbitrage, Spreads, Market timing, Unclassified|
|System started||2/19/2009 (52 months ago)|
(Last login to C2: 6/7/12 0:45)
C2 Score: 985
Vendor has created 3 other systems. Show
|Status||This system is no longer supported.|
System creator requested that closed trades data below be delayed by seven days.
|Hypothetical Trading Results|
|1/27/11 10:00||BUY||4,536||MDW||MIDWAY GOLD CORP.||1.13||2/18
|1/27/11 10:00||BUY||2,658||USAT||USA TECHNOLOGIES INC||1.87||2/18
|1/31/11 10:00||BUY||1,830||SSN||SAMSON OIL & GAS ADR||2.32||2/18
|1/31/11 15:56||BUY||378||HAFC||HANMI FINANCIAL CORP||10.56||2/17
|1/27/11 10:00||BUY||4,495||RAD||RITE AID||1.18||2/17
|1/24/11 10:00||SELL||429||SBIB||STERLING BANCSHRS||9.20||1/27
|1/24/11 10:01||SELL||144||JOE||SAINT JOE COMPANY||27.51||1/27
|1/21/11 9:32||SELL||138||JKS||JINKOSOLAR HOLDING ADR||28.83||1/27
|1/21/11 13:02||SELL||666||FTK||FLOTEK INDUSTRIES||5.99||1/27
|1/21/11 11:10||SELL||177||NVDA||NVIDIA CORP||22.43||1/27
|1/20/11 10:37||BUY||3,160||USAT||USA TECHNOLOGIES INC||1.63||1/24
|12/23/10 10:00||BUY||3,166||SIRI||SIRIUS XM RADIO INC||1.65||1/21/11 9:37||1.52||Low||($475)|
|12/27/10 15:46||BUY||3,324||ANO||ANOORAQ RESOURCES CORP||1.44||1/21/11 9:30||1.43||Low||($99)|
|12/23/10 15:18||BUY||3,620||IKAN||IKANOS COMMUNICATIONS||1.40||1/21/11 9:30||1.26||Low||($579)|
|12/23/10 10:01||BUY||2,981||AIS||ANTARES PHARMA INC||1.70||1/21/11 9:30||1.56||Low||($477)|
|Chance of 50% account loss||0.0%|
|Chance of 100% account loss||0.0%|
|Average Profit to Drawdown (APD)||0.03|
|Average P/L per unit traded||$2.52|
|Sum of dividends and cash expir. in model account||$728|
I have been following this system for many months before it was moved to C2. It provided excellent returns, going long or short depending on market direction. I have never seen a better directional stock trading system.
Most other timing systems simply use indicators based on price and volume, such as moving averages, MACD, STO, Bollinger bands. Our system is different in that it uses proprietary indicators that incorporate both technical and fundamental information not just for the broad market, but also for almost every stock traded on the US exchanges.
We have two timers: trend following and counter trend. The trend-following timer reacts to whether the general market direction is up (Long Term Up, or LTUp) or down (Long Term Down, or LTDn). During LTUp periods, we are long the market, and during LTDn periods we are short the market. It works in bull and bear markets.
The counter trend timer is a leading indicator that predicts when a correction is about to occur within the general market direction. When a correction is predicted during a LTDn (a bounce), we change direction and go long. This is called our Bottom Feeder Up (BFUp). Sometimes BFUp goes into cash when market conditions are unclear. When a correction is predicted during a LTUp (a reversal), we change direction and go short. This is called our Top Feeder Down (TFDn). The average length of a signal is three to four weeks.
Using these timers, we are almost always in the market. We keep our money working whenever we can. Each signal has different types of stock selections associated with it. During the trend following periods, we use stocks that are trending in the general market direction. During BFUp, we use stocks that have been beaten up or oversold. During TFDn, we use stocks that are over bought.
There are a number of methods Optimum Systems uses to manage risk.
1) Security stops: Optimum Systems has a predefined EOD stop loss and profit stop for each security. These stops mechanically defined during market entry.
2) Signal stops: Optimum Systems has predefined EOD stop loss for each timer signal. HPS will go to cash if a timer/signal is determined to be "broken".
3) Portfolio stops: This is a catastrophic stop where HPS will go to cash if the draw reaches a predetermined limit. Trading will continue when the market returns to “normalcy”.
4) Position sizing: Each signal has a predefined cash position. This is based on the volatility of the particular signal.
5) Portfolio diversity: Each portfolio uses diversity criteria (industry, sector, etc.) when selecting securities.
This system was back tested for more than 9 years and paper traded for more than 9 months before bringing it to C2. I personally trade this methodology.
All comments are greatly appreciated and all questions will be answered in a timely fashion.
- This System Description text was submitted by the creator of this strategy. Collective2 verifies only trading signals and hypothetical trading results. We have not verified that this text above is an accurate system description. Remember there is a substantial risk of loss in trading. Past performance is not indicative of future results. Do not trade with money you cannot afford to lose.