Collective2

Positions are single entry and 10% of trading capital. Historically smooth equity curve, low draw downs and low exposure. Maximum drawdown over previous 7 year period is 5%, average drawdown over that same period is about 2.5%. Average overnight exposure around 6% with an average annualized gain of 41%.

Trade signals are generated nightly around 7pm depending on EOD pricing availablity from Fidelity. Can range in number from 0 on low volatility days to 300+ on high volatility days. The most cost effective way to trade this system is to manually trade it using IB TWS BasketTrader. BasketTrader allows you to upload a csv file which I provide daily. The files are partitioned in 10 OCA Groups. Using these groups will effectively limit the number of open positions to a maximum of 10. I also provided addtional csv files produced from larger datasets for those seeking more exposure. If you need more info please contact me.

Fidelity Wealth Lab is used to maintain the strategies, perform backtesting, and generate order lists.

Backtesting Trading Results:

http://jhltrading.onlinewebshop.net/Inverterate1day

Past Performance is No Guarantee of Future Results.

**************Note on Margin and Collective2******************
Inverterate - 1 day does NOT use margin, however, there is one scenario specific to Collective2 where margin might be used briefly. It seems to be a timing issue and it will only occur at the market open of a particularly weak trading day.

Collective2 allows an unlimited number of orders as long as there is at least $1 of buying power available. Collective2 will execute any order that opens below the entry price. After executing these orders it will perform a buying power check. If the buying power is exceeded, Collective2 will reverse orders randomly in a margin call until the buying power is back in line. This scenario might happen once every 2 or 3 months.

The bottom line is the only sure way not to use margin in Collective2 is to trade on a cash account with no margin.