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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. 

August 22, 2019

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SuperSystem worst drawdown to date

October 10, 2019

We at AlgoLab continually monitor the performance of our software, taking note of results as compared to a number of metrics including order execution (entry and exits), run-ups and drawdowns, etc. At this moment, AlgoLab House (SuperSystem) is currently going through a significant drawdown. The potential for a drawdown was first reported in a blog post (and email) on August 22. This post was even placed on your AlgoLab dashboard as a link at the top as it seemed like an important warning to all users that we may see a drawdown soon. I do hope that communications like these blog posts, and making the real-time performance of both house accounts available to you (AlgoLabHouse (SS) and AlgolabHouse2 (Difference Engine - DE), does provide valuable information as to which system is currently performing. Others have mentioned that this information allows for a subscriber to choose the best for their trading as well as when (or if) to pause one's trading system or adjust other custom settings that are available.

 

Here is a link to the blog post from August 22:

https://www.web.thealgolab.com/single-post/2019/08/22/Predicting-drawdowns

 

The prediction for SuperSystem in that blog post was quite prescient. The SuperSystem drawdown started on July 30, 2019, and as of today (October 10, 2019), AlgoLabHouse (SS) account value has dropped $42,495 per contract (-24% drop from the equity high) which is the worst drawdown to date.

 

 

Prior to this drawdown, there was a $34,099 drawdown (-22% drop from equity high) that started on Dec 24, 2018 and ended on January 29, 2019. According to the 10-year backtest using the Performance Viewer, the worst "theoretical" drawdown previous to this current drawdown was $38,422. Yes, this drawdown is both worse than the maximum seen in the 10 year drawdown, and worse than that maximum seen over the last 3 years of funded trading... but the difference isn't statistically significant, and does not cause me to think that the strategy is no longer effective nor will continue to be as effective as indicated by backtesting.

 

PERFORMANCE VIEWER 10 YEAR BACKTEST OF SUPERSYSTEM

What is unique about this SuperSystem drawdown, is that AlgoLabHouse2 (DE) hasn't seen anywhere near the same degree of drawdown. AlgoLabHouse2 (DE) has dropped only $-9440 or 6% from it's equity high.

 

My objective is to provide information in the form of observations. This does NOT mean that I am recommending that you switch your trading system, or that using one system is better than the other, or that you should or should not pause your AlgoLab. I'm just trying to provide you with as much factual data about performance so that you can make your own decision. For example, many AlgoLab users set their AlgoLab to trade SuperSystem because it has the longest track record. Many users set their AlgoLab to trade DifferenceEngine because it offers better backtesting performance results. Many AlgoLab users chose to watch performance of both house accounts and switch their systems to the current best performer. Currently, approximately 14 out of 72 AlgoLab users have their systems paused.

 

LOW CAPITAL ACCOUNTS IN THIS DRAWDOWN

 

As a reminder, AlgoLab will limit the number of symbols that you trade based on the "CAPITAL" setting in your dashboard. This is intended to potentially protect you from additional drawdown for accounts with less than $70K of capital. If your account is trading SuperSystem, and your account value has dropped due to this drawdown, please adjust your "CAPITAL" field in your dashboard to reflect the amount of capital in your account so that AlgoLab will be forced to trade fewer symbols. If you don't change this, AlgoLab will continue to trade all symbols, and if this drawdown continues, this could result in much higher risk due to trading volume that is not appropriate for your account size.

 

YOUR SOFTWARE TOOL

 

I would like to remind you that neither myself, nor any employee at theAlgoLab.com is registered with any regulatory agency and therefore, we are not allowed to provide (nor do we hold ourselves out to provide) trading or investing advice. AlgoLab is a software application that is designed to assist subscribers to achieve their trading objectives. It is each subscriber's responsibility to monitor their AlgoLab software, and ensure that they have selected the settings that correspond with their trading objectives. This is why we provide valuable tools such as the Performance Viewer backtesting application which allows one to conduct their own historical backtest of our 2 trade entry algorithms SuperSystem and DifferenceEngine. In addition, we provide live performance results of our 2 funded "AlgoLabHouse" accounts which trade both SuperSystem and DifferenceEngine (AlgoLab House and AlgoLabHouse2 which are available in your dashboard by clicking on the "ACCOUNTS" tab).

 

Please review the user guide for a more detailed description of what AlgoLab is, does, and the settings available to you:

https://www.web.thealgolab.com/algolabdashboard

 

Please note that for AlgoLab customers in the USA, we are in the process of registering as a commodity trading advisor with the NFA, and once that process is complete, we will be offering managed accounts for our American customers. The difference when we are managing your AlgoLab account, is that I will be responsible for all AlgoLab settings.

 

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