August 10, 2017

Stock indexes have been in a BFTR since July 17th and our energy sector symbols have been sideways range-bound since July 28th. AlgoLab earns profits when markets are moving up or down, not when they are moving sideways.

The chart attached shows the ES (S&P 500) 60 minute continuous contract since July 17th. Today the ES contract is down over 21 points and if it breaks down further, we could start earning profits on the short side. AlgoLab SuperSystem uses a trend filter to switch between long and short bias trades. The blue line in the plot is a 1500 period moving average. AlgoLab SuperSystem restricts all new trade entries to long-only if current price is above the 1500 hour moving average. If below, AlgoLab will start to submit short-only...

August 10, 2017

I hate drawdowns as much as you do, and after touching a 70 something percentage return since the house account started trading in August of 2016, we are going through a bit of a drawdown at the moment.

Can drawdowns be avoided?

If I knew of a rule that would reduce loses, then I would incorporate that rule into AlgoLab's SuperSystem trading system, but unfortunately, I have not found any rule that is beneficial and that passes my statistical tests which is why the AlgoLab house account is never paused or changed. Examples of some of those rules that I have tested include tracking the equity curve itself, and pausing trading when the equity value drops below a moving average of that equity value (ie: when your equity starts to drop below a certain leve...

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© 2017 by theAlgoLab.com  |  Privacy policy  |  Contact us

theAlgoLab.com trade execution assistance software is only available to residents of CANADA.

 

AlgoLab by theAlgoLab.com is trade execution assistance software. theAlgoLab.com company, software, or it's principals do not provide trading advice or recommendations. If you require personalized professional trading / investing advice, please consult with a licensed broker/CTM. Actual past performance, or simulated past performance does not guarantee future results. Trading futures assumes a high level of risk. theALgoLab.com and it's principals are not registered as investment advisors. Consult with a CPA or financial advisor, or broker to ensure that your strategy utilized is suitable for your investment profile before trading in an actual funded live brokerage account.

 

Some trading performance results posted at this web site are from back-testing systems during the dates indicated, using specific settings, from a basket of different futures contracts. Some performance results shown here benefit from hind-sight. Some results shown result not from actual funded trading accounts, but from simulated accounts which have certain limitations. Actual results will differ given that simulated results could under, or over compensate the impact of certain market conditions. Actual draw downs could exceed back-testing draw downs when traded on actual trading accounts.  While back-tested results might show profitable returns, once commission, slippage, and fees are considered, actual returns will vary. 


Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website or on any reports. The past performance of any trading system or methodology is not necessarily indicative of future results.