If you are going to trade this system you need to know yourself pretty well and know how much drawdown you can tolerate. If you use too much leverage you will likely get scared and exit the trade early. Exiting the trade early will almost always cost you tons of money.
Here is how a winning trade will go sometimes: The market drops about 2% and you receive the system signal to go long. This system has up to two signals per trade so you buy 1/2 of your maximum contracts per trade. Then the market continues to drop and after a few days your account is down 15%. You are starting to feel scared that the market will continue to crash. All the financial experts around the world are proclaiming on the television and radio that the market will continue to decline and you should get out as soon as possible. At this darkest hour the system now gives you a second signal to double up on you contracts! You were already scared with 1/2 the contracts and now you need to double up? At this point the future is up to you. You can bail out for a significant loss or double up with an 80% of turning this into a winning trade in the next few days. It 19s hard to go against your instinct to sell, but this system feeds upon fear and will make some of its best gains when all hope is lost.
I have been trading this system off and on since October 2011. At that time I didn 19t have a lot of confidence in the system so I didn 19t perform the trades like the system specified. I did the math and if I would have faithfully followed the system from day 1 until now my account would have tripled in size! Instead my account is only up 10% for that entire period. My account would have risen 56% in 2014 alone if I would have stuck with it.
How many SP500 contracts should you trade to maximize your profits while keeping the drawdowns reasonable? The yearly gains displayed on collective2 are distorted by the fact that the system always trades one or two contracts per trade no matter what the account size is. For example, the gains in 2010(when the account value was $10,000) are most likely overstated and the gains in 2014 (account value was P,000) are understated. Using the historic system trades I ran some simulations to help determine the optimum amount of leveraging to use. The results were that trading one contract (or two if there is a second signal) for every $30,000 in my account would maximize my yearly gain and still have a reasonable drawdown. If you had traded this system for the 15 years at this level of leverage you would have made an average of 45% per year with a maximum drawdown of 27% during the trade and a maximum drawdown of 12% after the trade closed. If you are not comfortable with this drawdown you could, for example, trade $60,000 per contract and cut all those numbers in half.
The good:
1. 15 year overall track record without a single losing year. 5 year independently verified track record on the colletive2 site. Using $30,000 per contract leveraging, the biggest gain was 108% during the crash of 2008 and the smallest gain was 8% in 2012.
2. Using $30,000 per contract leveraging, for the last 15 years the overall gain was 45% per year (37% average per year the last 5 years) with a maximum 1Cduring a trade 1D account drawdown of 27% and a maximum closed trade account drawdown of 12%.
3. The system does not just take trades to make the subscriber happy. It only signals a trade when all conditions for a high probability trade are met. During low volatility markets it might go for months without a single trade.
4. Perfect for retirement accounts. TD Ameritrade allows you to trade futures contracts in an IRA without any monthly or yearly fees. Trading this system in an IRA using stocks or ETF 19s doesn 19t work as well because it is hard to get the exact leveraging you want and after buying and selling stocks in and IRA you have to wait 3 days before you can trade again. Sometimes the system will signal another trade sooner than 3 days after your last trade. But with futures contracts you can buy and sell as often as you like at about any amount of leveraging you like.
5. Low exposure to the market. Overall on average with this system you are only in the market about 30% of the time. That means the next time there is a big event like 9-11 you have a 70% of not being in the marked so your risk of an oversized loss is reduced significantly.
The bad:
1. You can 19t make a lot of money without risking a lot of money. At $30,000 per contract leveraging there is a chance that a once or twice a decade event will occur while you are long and you will lose 50% or more of your account. I would estimate your chance of this is about 5% for each 10 year period you use the system. I plan to minimize this risk by trading $30,000 per contract until my account grows substantially (for about 6 years) and then reduce my risk to $60,000 per contract.
2. One of the main reasons I like this system is the 15 year track record. The time between 2000 and 2010 is not independently verified and we have to wonder whether or not the track record is accurate. Was the track record created real-time as the system provided signals or was the system created in 2010 and back-tested on data back to 2000? If the 2000-2010 track record consists of back-tested then this is a good system but not yet proven to be great.
The developer has done a phenomenal job with the system by investing into micro/small cap stocks. As of today, he has decided to shift his strategy to instead invest into mid/large cap stocks - while somehow expecting to earn the same returns. His rationale is that the system has become too popular and thus trades into micro/small cap stocks move the price significantly - making it difficult to invest effectively. The challenge he faces is real but he could have managed the issue less drastically. For example - he should not have invested into a position (airt) that has an average daily volume of just 9,000. Sticking to a higher average daily volume threshold would appear to have been a more measured mitigating action.
The bottom line is that this system will no longer earn the same returns as it has in the past simply because the allocation strategy has changed so significantly. Proof of this is his other system OP II which by design focusses on mid/large caps and earns a lower rate of return. That said, his systems will likely continue to outperform the overall market and he deserves credit for that. He's generally a very disciplined investor.
I have used the system for a few months but have decided to leave it - not b/c its in a losing phase (which is inevitable with any system) but b/c the developer is constantly tweaking it and then exulting how great the back-test results are with the new tweaks. [One can always find one or more parameters that give fantastic back-test results but that doesn't mean the underlying concepts are robust.] I reckon it'll take him a few years to be a mature back-tester.
After 30% account loss I am pulling a plug on it. Very risky system with a bad risk management from a developer. It appears that developer went into meltdown after system 15% account loss in single trade and abandoned his original strategy.
horrible. Only way to describe this system and manager. When trying to get out, he put on more trades so u are stuck as he takes you down. When things don't go right he will not even bother to respond. Don't think this system will last to long as one can see from the dismal performance with a high price tag. Just make sure if a new system opens up run for the hills
Best advise for this trader and system =
STAY AWAY.
trust this advise - it will save you allot of money and time.
Many other safer more professional systems available, choose them.
Am not sure why nobody writes reviews on TheForexPortal. I thought its a great system. Manageable drawdowns for the returns shown with almost a year of consistent records.
This "Trend Picker" strategy could compliment many other retracement strategy out there.
I also like the fact that i see Mr Adrian Eliffe online most of the time, which hopefully means that he (this vendor) isn't solely depending on EA or fully algorithm system (which can be scary).
I was referred to this strategy by a friend and it has not disappointed so far. Only one signal so far. So may be too early for me to tell but this lloks to have solid history and track record.
Thank you,
As the last reviewer pointed out it appears that this system was overfit to a recent small data set during development and is now being tweaked along the way when when faced with real world market conditions. The result: 7 months of gains wiped out in a month. To make matters worse the developer doubled the leverage in a self-destructive attempt to recover from the drawdown quickly despite the increased volatiilty and right before an FOMC announcement (!) I noticed there is a Goldmeter "D" ready to set sail once this one sinks to the bottom. Tickets should be on sale soon but I think I'll stay on dry land next time.
This system has had impressive returns to date and the developer seems to have a knack for picking the places to get in and out with a profit and knowing when to stand aside. But, be prepared to suffer through some harrowing intra-trade drawdowns as this system will add at least 4X the original trade size in order to try and average down an open loss. I do wonder what will happen when the market does not revert to a breakeven and instead keeps going against the trade. For that reason I cannot give it a 5 stars just yet because there is not enough time on C2 to cover those situations but time will tell. Wish the developer luck.
I have not been on Tranche's system for very long, maybe 1 week, but I can say the system is going through major structural changes due to trading losses. Supposedly, upon completion of these changes, the system will be more conservative and profitable, so now is not the time to write a review of Tranche. It is definitely an expensive system and one would expect superior performance based upon cost, but I would say it has been anything but superior at this point. Proceed with caution is the word here.
This is a martingale type of system which means it will keep adding to losing positions and hope for a rebound. Eventually we will enter a bear market and the system will run out of margin and can even wipe out your account. It's one of the few types of systems besides selling naked options that can do that fairly quickly. This is the reason that the decent returns in the recent bull market aren't attracting subscribers.
Even though the system is barely one and a half month old (that is the reason for only 4 stars) one cannot help but be impressed how this discretionary trader delivers on his confidence in his trading ability as stated in his early forum posts and system description. He skillfully takes advantage of special situations while keeping the risk low with judicial hedging. Could this be one of the very rare cases of a master trader on C2? Time will tell, all I can say is, keep up the good work Brett.
This is a flawed system, the stops are huge, it takes 10 good trades to make up for one bad trade, and many times it picks the opposite of the obvious market direction
If I had rated this system prior to 11/30/14, I might have given it four stars. But the performance since then has been poor. With a "long only" stock system, I would like a system that can outperform the indices so that each time the indices hit new highs, the system's equity does the same. That was the case prior to 11/30/14, but since then, the system has performed poorly. The system does not use stops, so when a stock held by the system gets clobbered, as has been happening on occasion, the system gets clobbered and the subscriber can only sit there wondering "when is this guy going to pull the plug on this terrible trade". That is a major weakness of this system--not using stops and holding losers way too long. A subscriber would have done a lot better just holding a 2X long S&P index fund over the life of this fund.
I have researched and used several systems on C2, Striker and Altavest. Zakum is definitely one of the best systems available as demonstrated by its returns since inception. As part of my diligence, I always submit questions to the system designer. Guy promptly provided useful responses to my questions which gave me confidence to use his system. Many system designers don 19t properly respond to prospective subscribers so Guy deserves extra credit here. I like the fact Zakum focuses on one instrument as I believe it is easier to create a profitable trading strategy for a single instrument versus creating a profitable trading strategy for multiple instruments.
A classic case of you get what you pay for. Unlike many other futures trading systems, this developer knows how to ride the winners and milk them for all they are worth. This creates the exceptional returns.
I am currently very satisfied with Zakum's trades. A truly professional trader who knows the market well. I got in Dec when there were only one or two other autotraders and autotraded immediately. Perhaps it was the quality of the trades that attracted my attention. Since then i never looked back. His is one of the few systems that i learned not to meddle with the trades and just let it run.
Great system, smart developer. If you can handle 5k - 10k DDs and like steady profits, this system is for you. Be ready for a patient algo with parked entries (easy for manual trade). I cannot recommend this system enough.
Very professional trader with excellent risk management and outstanding returns so far. I am very happy with the performance especially given the recent extreme market conditions that this system had to deal with. The last review of 1 star is WAY off-base and unfair--backtests are not always available and even if they are they're not very useful besides seeing very basic characteristics which the developer is happy to describe. What really matters is FORWARD execution in real-world conditions on unseen data and this system has done very well to date. The only thing lacking is the time on C2 but that will resolve itself.