January Trading System Results

I hope everyone had a great trading month!  January was really a breakout month for the MultiStage Trading System.  The two newest modifications have worked out quite well. 

First, we are seeing a lot more trades.  To a certain extent, trading is a numbers game.  If we can identify trades with an “edge”, then more trades is better. And that’s what we are now seeing.

Second, using the 200SMA as a soft stop has also help control some runaway trades. Out of the 41 trades it was only triggered a very few times, but it contained a couple runaway losers, thereby reducing drawdowns.

It’s still very early with the modifications, but so far they seem to be working.  As you can see, 41 trades is a nice amount of exposure, and therefore it really improved the overall model results.  Not everyone will see 14% returns for the month, but I know of some that got very close.  I’m interested in hearing from any of you that care to share your real results. Below are a few of the key statistics:

 

Net profit for the month	14.70%
Total number of trades	41
Average return per trade	2.11%
Win ratio	78.05%
Exposure	20.27%
Total time invested	Less than 10 minutes a day!

Now might be a good time to comment on why our real trading results don’t match the model exactly.  I did an article a while back that is still accurate.  The one category I didn’t mention was “execution”.  Sometimes there are simply execution differences with brokers that cause us to get in and out of trades at different prices.  Aside from that, as the article says, Commissions, Sequencing, Liquidity, and Mistakes are the other biggest culprits.  That said, it’s been my experience that you can get pretty close.

Good Trading…