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Here the review of the semi-automated system after two months following the rules of the Daily Report Service
I am writing today this letter to show you the results of the semi-automated system of our trading strategy. Basically we
are trading Futures Markets using the 5 minute chart rules we provide in our Daily Reports. These are the Futures Markets we are trading: - S&P500 (e-mini)
- 30Y T-Bonds Futures
- Crude Oil (WTI Light Sweet Crude Oil
- Gold
- Soybeans
- Corn
- Wheat
- Live Cattle
It means we are actually trading 8 different Markets. Let me first say what I really think: this strategy is not made for CFD! As a professional
trader, I do not trade CFD, I actually hate them. There is no one professional doing trading with CFD! The spread is ridiculous usually, even 1 point in markets like S&P500 or Gold. Usually we do trade CFD when we cannot effort Futures, and that’s fair enough, but in this case we trade following swings, not intraday strategies. The lack of funds can be another big problem. You see here above we are trading 8 different Markets with Futures Contracts, it means we need a lot of money.
Trading only one Market is obviously possible, we trade each Market to make profits, right? But you understand you need patience to trade only one Market because you cannot think to have in every week the perfect conditions to trade. Unfortunately books made lose the reality to who wanted to become a trader. Real trading is something totally different, it is like you look at one movie, a love story in 2 hours, it seems so perfect… but the reality is different, in the reality you feel many
emotions, and you have to get used to them for days, months… so, if we want to trade one Market, that’s fine, but be patient and wait.
I’m developing this semi-automated systems for different reasons:
- Sometimes I make mistakes, I feel tired and I lose patience and discipline, but the system helps me to do always the right thing. In my experience I have discovered it is not always possible to remain disciplined (at least for
me).
- Spending 12 hours in front of the PC is something I do not want to do for the rest of my life, and the automated system can solve this problem.
- Have you ever tried to trade 8 Futures Markets in the same time? I use a 6 monitor desktop and I still get crazy, but with the semi-automated system I do not get crazy anymore, I wish I did it before! I feel like I work 80% less now. I do less mistakes, I have more power to be disciplined and to study more
Markets.
And, with the semi-automated system trading many Futures Markets I see now something very powerful that I had never considered:
- I have right now a very stable portfolio; when something goes wrong with one Market, it is not painful at all, and considering I have a strategy that statistically works in the end, I see the portfolio growing up, a bit like the charts in the Trades Record file I prvide for each Market we trade. I feel
like I have in my hands the opportunity to create a stable Hedge Fund on my own, and the more Markets I can study, the more stable the portfolio becomes without affecting the profits. Once I study the Market, then I have fixed rules to follow in terms of statistics.
- Trading many Markets, I do not lose my mind in only one Market. When I was trading only the S&P500 sometimes I lost patience, but now I have so many Markets to look after to that if I have to wait in one Market, I know
there is going something to do in another one.
So, you can understand I’m very happy about what I’m doing right now, and now we see the results. Consider that I’m not trading Stocks because TradeStation requires two different accounts to trade Futures and Stocks, and if you followed the Stocks strategies of the last Weekly Reports, you see we could make huge profits. Actually my next step will be to create a Stocks Portfolio using my
studeis.
As I said, I use TradeStation and the system is made with EasyLanguage, of course. The system is very simple, it will get complex in the future, but right now it is just opening the positions and stop-loss orders. The take-profits must be sent manually. This system in EasyLanguage is semi-automated because we still need to insert manually take-profit orders. When we play with the Market, for example when we take some profits and then we re-open
the position after a pullback, we have to do everything manually. It is semi-automated also because every day we need to insert the "Key Prices" we want to use for every Market, which means we still need to study the Market, the strategy and the forecast. I know my system and my studies work, this semi-automated system helps me to avoid mistakes, trading many Markets and creating a proper profitable portfolio. The main job is still based on my own studies.
The test
started 2 months ago, this is at the moment the result:
You see in the voice “Real Time Account E…” the value $1.129.316,30: this is the value of the portfolio now, which started from 1 million. It means we have been able to make +12.9% in 2 months, not bad! And we are actually using a low exposure for this amount of money. For
example, right now we are using a margin or $93.390,00, you can see it in the voice “Real-Time Initial Margin”. I’m doing it on purpose, and once we arrive to +20%, we can increase the exposure.
The only very big exposition is on Wheat and Corn, where we are mainly accumulating for expected higher levels, but the system is ready to close the position if something goes wrong. Then we only have: 5 contracts LONG with Soybeans (waiting for a movement above 920 to increase the
position); 5 contracts LONG with Live Cattle (I took already some good profits); 3 contracts LONG with Gold; 3 Contracts SHORT with the S&P500 (e-mini); 3 contracts LONG with Crude Oil.
Here you see the Equity Curve Line:
Have you seen the last part of the chart? It is because I’m changing a bit the strategy after studying my results, I’m actually taking sooner the profits, trying to take advantage of a sideways Market as well. The line is definitely more stable, but we will not see strong upward lines in this way.
In the next weeks I will give you more details. I just want to give you this simple detail: Sunny Harris, a famous mentor of trading systems in Tradestation, said that we need this value:
(Percent Profitable)*(Ratio avg win/avg loss)*(Profit factor)
to be greater
than 1.2 to be happy with the performance of the system. Well, at the moment my system is producing a result or 1.372, and it reveals that we are using a winning concept of the strategy.
You have understood this is not a fully automated trading system. The semi-automated system is not available yet, but it will soon, with a
different subscription. It will be probably suitable more to professionals than privates.
But all the strategies for each Futures Market we trade are available in our Daily Report service, and here, again, we provide a real proof
of our profitable work. |
If interested in our studies, please visit the order page
You can read the previous Newsletters following this link: http://archive.aweber.com/awlist3900413
Best Regards, Daniele Prandelli I Am in Wall Street Ltd
High Probaility
Trading Techniques - S&P500, 30 Year Treasury Futures Bonds, Crude Oil, Gold, Corn, Soybeans, Wheat, Forex, Stocks, Silver, Live Cattle and S&P/ASX200.
DISCLAIMER It should not be assumed that the methods, techniques, strategies or indicators presented by
e-mail, e-book, blog or files will be profitable or that they will not result in losses. There is no assurance that the strategies and methods presented in here will be successful for you. Past results are not necessarily indicative of future performance. The examples presented here are for educational purposes only. The data used is believed to be from reliable sources but cannot be guaranteed. The methods presented are not solicitations of any order to buy or sell. The author, publisher, and
all affiliates assume no responsibility for your trading results, and will not be liable for any loss, damage or liability directly or indirectly caused by the usage of this material. There is considerable risk of loss in Futures, Stock and Options trading. You should only use risk capital in all such endeavours. |
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