The performance figures below are hypothetical and represent a model portfolio. We have factored in brokerage and slippage into the results at realistic levels. Returns will vary based upon money management, markets selected, account size etc. Please do not analyse the returns below without regard to the disclaimer at the bottom of this page.
Year to Date: Percentage Performance
Year to Date: Dollars Per Contract Performance
* Returns calculated by dividing average $ profit per contract into minimum recommended account size.
Please visit our Trading Systems menu on the menu bar for detailed performance figures on each individual system, minimum account sizes etc.
2011 Performance
Disclaimer
Futures based investments are often complex and can carry the risk of substantial losses. They are not suitable for all investors. The ability to withstand losses and to adhere to a particular trading program in spite of trading losses are material points which can adversely affect investor returns.
The percentage returns above are hypothetical in that they represent the percentage returns experienced in a model account.
The model account rises or falls by the hypothetical compounded profit and loss of trades generated by the system’s trading signals over the test period utilising the money management formula shown above. Returns and drawdowns can increase with a higher level of risk or be reduced with lower levels of risk by adjusting the money management formula for a higher or lower risk (see my blog for more details). The hypothetical model account begins with the initial capital level listed with returns based upon the running total of returns over the period. The % returns reflect inclusion of commissions, fees, and the cost of the system. The monthly cost of the system (if any) is subtracted from the net profit/loss prior to calculating the % return. For systems with one time purchase costs, the monthly cost is calculated by dividing the purchase cost by the number of months in the reporting period.
The main limitation of the hypothetical performance figures shown above is that they assume you can keep compounding to an infinite number of contracts. In practice we would not really be able to continue compounding past 100 contracts. In practice this is overcome by adding additional markets to trade and diversifying the portfolio.
The actual percentage gains/losses experienced by investors will vary depending on many factors, including, but not limited to: starting account balances, market behavior, the duration and extent of investor participation (whether or not all signals are taken) in the specified system, and money management techniques.
CFTC Rule 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.
Government regulations require disclosure of the fact that while these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits there is also a risk of loss. A loss incurred in connection with trading futures contracts can be significant. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital.
