SPI 200 Swing Trade 1

Sit Back and Watch Your Bank Balance Rise With The SPI 200 Swing Trade 1 System…

 

“Unearth the Full Earnings Potential of the SPI200 Swing Trade 1 System

and Find Out How You Can

Increase Your Investment Performance”

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No other trading system on the market compares with the methods we utilise for trading the SPI. Simply put, the SPI200 Swing Trade 1 system is in a league of its own when it comes to SPI trading systems.

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Larry Williams – Director – I Really Trade.

It’s been a real pleasure and privilege to watch Andrew’s career develop from being a student of mine to someone who teaches an old dog like me new tricks every now and then. I have found Andrew to be responsible as well as creative in his approach to market success.

www.ireallytrade.com
Larry Williams – Possibly World’s Foremost Futures Trading Educator and Trader

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If you are a realist and understand that futures trading is far from easy and that it is very difficult to make money, but want an investment that can perform well in both positive and negative market conditions, then the SPI200 Swing Trade 1 system is the solution for you. You effectively outsource the trading system development and execution of the system to a team of experts who can grow your account over time.

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The Australian Share Price Index 200 is referred to as the SPI 200 Index futures, which is traded at the Australian Stock Exchange and is the futures contract based upon the S&P/ASX 200 Stock Index. Australia’s equity market is the third largest in the Asia Pacific region and the 12th largest in the world. The top 200 companies listed on the Australian Stock Exchange make up the index and are revised each month. The SPI 200 Swing Trade 1 system provides traders with leveraged opportunities to short term situations via the futures contract which accounts for approximately 87% of the total Australian Share market with one trade.

 

 

At Strategic Capital Management We Help Investors Oversome the Following Problems:

  • Not finding the time to develop a wonderful trading system that is highly profitable over time
  • Not having the mental discipline to follow the system and execute orders day in, day out even through drawdown periods
  • Not being able to trade the system while at work
  • Not having an understanding of what makes a system profitable
  • Not having the experience necessary to be a profitable trader
  • Not having the mental fortitude to place orders because of emotional blocks caused by fear
  • Or Not having the mental fortitude to take profits or cut losses because of emotional blocks caused by greed

If you experience any of the problems listed above and you are interested in adding a profitable high risk/high return (potential) alterntive investment to your stock or property portfolio then Strategic Capital Management’s System Assist Solution may be for you.

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Introducing the Powerful and Effective SPI Swing Trade 1 system, SCM’s Longest Running and Highly Successful SPI Trading System

 

Since release in January 2009 the SPI Swing Trade 1 system has returned 67.51% in 2009, 91.87% in 2010 and 27.45% in 2011 based upon the minimum required starting capital of $25,000 per contract.

  • The system has shown an average annual return of 51% since 1997 incorporating both hypothetical and real time returns based upon starting capital of $25,000.
  • The system has had a maximum drawdown of $11,900 which is extremely low for a SPI200 futures trading system.
  • The system averages $324 per trade after deducting $80 round turn slippage and commission.
  • The system wins approximately 56% of trades with wins on average 1.56 times larger than losses.
  • The system has significantly outperformed the ASX accumulation index.
  • The system is traded for you by Strategic Capital Management. The system generally performs well in bear markets or volatile markets.
  • The system is only in the market a small percentage of the time reducing your risk.
  • The system only holds trades for 1-3 day.
  • The system makes money in 75% of months, although note in 2011 the system only had 3 profitable months and finished ahead for the year.

An Investment in the SPI200 Swing Trade 1 system:

  • Let’s You Keep You Day Job by Hiring a Team of Dedicated Professionals To Do Your Trading for You
  • Provides You With the Top Performing SPI200 Strategy On the Market That Has Been 10 Years in the Making
  • 24/7 Online Access to Your Trading Account and Account Statements to Monitor Trading & Performance
  • Offers a Highly Transparent Investment With Full Disclose of Actual Trading Results v System Generated Returns Accountability as We Monitor Client Performance v System Generated Results on Monthly Basis Which are Published in the Members Area of Our Website
  • Overcomes the Emotional Pitfalls of Trading By Outsourcing the Trade Execution and System Development By Employing a Team of Professionals Who Get the Job Done Right

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Why Invest This Way?

Investors should consider adding active, mechanical trading strategies to their investment portfolios because they provide:

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POTENTIAL FOR SUPERIOR RETURNS

  • On the performance pages of this site, you will see that our trading strategies offer the potential to generate returns that are consistently superior to those that have been achieved by a passive direct investment in an asset class such as shares or property.
  • In addition to the absolute returns generated, our trading strategies have provided robust performance under a variety of market conditions, and tend to perform best when market conditions are volatile and other asset classes are providing poor performance.
  • It should be noted that the trading accounts of those invested in SCM Trading Strategies are in a constant state of flux.  This means accounts suffer regular drawdowns, or periods where account values decline below previous equity highs.  This is part and parcel of this type of trading, and we note that account values tend to bounce back quickly after sharp declines, however some draw-downs can persist for longer periods.  Furthermore, the active nature of the trading strategies gives us the ability to claw back prior losses, whereas buy-and-hold investors remain at the mercy of broader market performance.

DIVERSIFICATION

  • In our view a prudent long-term investment strategy should be diversified across various asset classes, investment managers and investment strategies.
  • The Strategies we offer sit in a relatively unique part of the risk/reward spectrum in that historically they have provided positive absolute returns in most rolling 12 month periods, and tend to perform best when other asset classes are generating negative returns.
  • For example, when diversified buy-and-hold share portfolios lost up to 50% of their value between November 2007 and March 2009, our Strategies were generating strong results, with positive returns of between 50% and 160% over the same time period.
  • Buy-and-hold strategies may suffer from the implied notion that markets will always recover.  This is not always the case, Japan’s Nikkei 225 index is today almost 75% below the peak level it reached achieved in December 1989, more than 20 years prior.
  • While our Strategies tend to perform well over most rolling 12 month periods, they are also subject to regular losses.  The key difference is that the active nature of the Strategies provide the ability to  recover losses relatively quickly, rather than incurring the opportunity costs of holding on for a recovery that may be a long time in coming.

CONSISTENCY

  • One often overlooked factor of a long-term investment strategy is how much the precise sequence of events matters.  Take a moment to understand what we mean by this.  Despite shares as an asset class generally providing average returns of 5% – 15% over the long run, this is not helpful to the numerous retirees that had previously planned to retire in 2008 or 2009 before the GFC forced them back into the workforce.
  • The consistency of an investment strategy is therefore crucial in determining the likelihood that your investment goals will be achieved over a given timeframe.
  • Our strategies are designed to generate consistently positive investment returns in a range of market conditions.
  • This gives investors the potential to continue growing their investment regardless of the economic conditions encountered at a particular point in time.

DISCIPLINE

  • Many profitable investment strategies fail because the people executing them make mistakes, miss trades, or fail to hold their nerve at crucial moments.
  • Discipline is vital to success as a trader.  Traders must not only identify a market edge through a trading system that delivers a positive expectancy over time (ie – makes money), the system must be followed with great discipline. This means predetermined stops must always be placed in the market to protect accounts from large losses.  It also means that profits must not be taken too early nor should traders remain in positions for longer than planned.
  • It is exceptionally difficult for most traders even with a winning system to follow strict trading rules with discipline. This is because as human beings our egos tend to make us believe too much in our trades and we all suffer to a greater or lesser extent from emotions such as fear and greed which lead us to modify a winning system when we are in the market.  Ego, fear and greed are the real enemies that prevent most of us from becoming successful traders.
  • It is my view that the most highly successful discretionary traders follow strict rules and rarely make changes on the fly. They are in effect trading mechanically. There will be exceptions but I believe they will be quite rare.
  • My thesis is, therefore, that almost all successful trading is essentially mechanical in nature.
  • What fully mechanical systems do is program the trading system using readily available programs such a Trade Navigator, Tradestation etc., so that it can be automated to a greater or lesser extent. When you use fully mechanical systems and particularly when these systems are either automated or traded on your behalf by a broker you are removed as much as possible from the day-to-day emotions that ruin traders.
  • At SCM we believe that having a broker trade proven mechanical systems on your behalf provides the highest probability for most individuals of becoming profitable.  SCM  is a specialised futures system trading firm that provides a unique broking service through specialising in trading its own in-house developed and proven futures trading systems on behalf of clients.

 

 Single Contract Equity Curve – 1997 to Jan 2012

 

If you’re looking for an investment that can keep your overall portfolio ahead during unfavourable market conditions the SPI Swing Trade 1 system could possibly be the solution that answers your needs. With the investment fully managed on your behalf, you can sit back and relax as your team of dedicated professionals does the trading for you.
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Allan Kerr – Client of Strategic Capital Management.

I have known Andrew Gibbs for several years and I have been a client of Strategic Capital Management since early 2011. So far I have been pleased with the return on my account and I have been impressed with the transparency of my investment and the regular information provided. I am happy to recommend Strategic Capital Management’s futures trading investments to other potential investors.

Allan Kerr

 

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“Thomas Forster – Client of Strategic Capital Management”

I have been trading with Strategic Capital Management since 2008 and over that time I have found SCM to be honest, reliable and transparent with the execution of my trading systems to the highest standard.

Thomas Forster

 

The SPI Swing Trade 1 futures trading systems seeks to aggressively trade short term 1-3 day fluctuations in the SPI200 Index futures. The trading strategy looks at inter-market relationships with the US S&P500 Index, short term sentiment via extreme price movement and two seasonal trades which look at the End of Month and First Day of Month effect from fund manager window dressing. These trades may be both long or short and can therefore profit in both bull and bear markets.

 

 

  • This trading system is a ‘long volatility’ system in that the system is likely to offer superior performance during periods of high volatility and periods of underperformance during low volatility (which typically occurs during a bull market).

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The Risks

All investments have risk, which means the value of your investment may fall.  Our Strategies trade futures contracts, which are leveraged financial instruments that provide the opportunity for higher than average returns.  However, leverage also exposes you to additional risks and trading futures without adequate levels of capital is a high risk strategy.  While it is not possible to identify every risk factor relevant to investing in the Strategies, we have identified some of the more obvious risks in the detail that follows.  Where appropriate, we have also provided some detail as to how SCM has attempted to mitigate the potential for downside provided by some of these risks.
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HYPOTHETICAL TRACK RECORD

  • The past performance results provided on this website illustrate the hypothetical returns our Strategies would have delivered if they were traded over the time frames stipulated.  However, unlike an actual performance record, hypothetical results have limitations as they do not represent actual trading.  As the trades signalled were not physically executed, the results may have under or over compensated for the impact, if any, of certain market factors, such as a lack of liquidity.  Simulated trading strategies more generally can be designed with the benefit of hindsight.
  • We have tested the Strategies illustrated on this website on historical data, sometimes reaching back as far as 20 years.  The Strategies illustrated only trade highly liquid equity index contracts, and in our back-tested results we have factored in levels of slippage (price fills that are worse than the Strategy indicates), which to date have proven to be conservative.  We believe the Strategies are well researched, and while the trading signals are mechanical in nature, they are supported by robust fundamental reasoning.  Entities involved with SCM have their own money invested in the Strategies being illustrated on this website.
  • SCM’s Strategies have in live trading performed in line or better than the results published on this website.  The key reason for this is the slippage assumptions applied to each system have proven to be conservative in practise, meaning a ‘slippage reserve’ tends to accumulate in client accounts, pushing cash returns above those that have been published.

MARKET RISKS

  • Investment returns generated by SCM’s Strategies are influenced by many market factors. These factors may include market sentiment, and local and international political events.  Historically, SCM’s Strategies have tended to perform better when the market environment has been unsettled, which leads to above average levels of volatility in financial markets.  For that reason, we tend to embrace periods of market uncertainty, when other asset classes may be declining in value.  On the downside, our Strategies may underperform equity index benchmark performance during periods of low volatility.
  • While we do not provide personal investment advice, in our view clients should diversify their investment portfolios over a variety of investment strategies and asset classes.  During periods where our active trading strategies are underperforming equity indices, it has often been the case that a direct investment in equities would offset these losses.

FAILURE OF ELECTRONIC TRADING SYSTEMS

  • The brokers providing the physical execution of SCM Strategies undertake transactions on electronic trading systems.  Electronic trading systems are susceptible to temporary disturbance or breakdown, including the failure of hardware & software, the result of which maybe that orders are not executed as per SCM’s directions.  This may result in positive of negative variances from reported Strategy results.
  • While no execution platform can be 100% perfect, the professional System Execution Service provided by Strategic Capital Management is of institutional grade.  SCM operates trading desks in both Australia and New Zealand.  Every effort has been taken to ensure that client results meet or exceed those published on this website.

INVESTOR PSYCHOLOGY

  • The ability of an investor to withstand a substantial drawdown in account equity is crucial to the success of trading the Strategies.  The strongest returns tend to follow closely behind the weakest returns, meaning investors that ‘lose their nerve’ and withdraw will not expose themselves to the longer term profitability of the Strategy.  Despite the nature of relatively short term gains that are possible in trading the Strategies, investors should view the investments with a long term timeframe of at least 3 years, but preferably 10 or more.

OTHER RISKS

  • THE FOREGOING LIST OF RISK FACTORS DOES NOT PURPORT TO BE A COMPLETE EXPLANATION OF THE RISKS INVOLVED IN TRADING THE STRATEGIES ILLUSTRATED ON THIS WEBSITE.  POTENTIAL INVESTORS SHOULD CONSULT WITH THEIR OWN FINANCIAL, LEGAL AND TAX ADVISORS BEFORE DECIDING TO INVEST.

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Strategic Capital Management is licensed by the New Zealand Financial Market’s Authority and when you open an account Strategic Capital Management is authorised by you to place trades in line with the trading strategies you select when opening an account. Whilst Strategic Capital Management Limited is a licensed advisor and is authorised by you to execute trades in your account and charge fees for service, we are an introducing broker and clear through Interactive Brokers. This means that your brokerage account is setup and held with Interactive Brokers via an advisor-client invitation e-mailed to you from us. All account opening documentation, deposits and withdrawals are processed through Interactive Brokers. All statements and reporting is also done through Interactive Brokers and is detailed, yet concise and suitable for tax purposes without the need to reconcile multiple accounts through the one broker. In addition your account balance is available online and you can view the performance of your investment live via the account management or Trader Workstation platform. This investment is therefore very transparent and you can view the performance of your investment portfolio 24/7 and compare it to the performance statistics updated on our website. We have chosen to use Interactive Brokers as our clearing broker on the basis that they are financially sound and from our research represent a safe brokerage firm for our clients to hold their funds with and because they integrate well with our research platforms and automated trading strategies we offer. Your counter-party risk is therefore with Interactive Brokers, not Strategic Capital Management. When placing your money with a broker, you need to make sure your broker is secure and can endure through good and bad times. Please visit the Interactive Brokers website for information on Interactive Brokers Groups Strength and Security at www.Interactivebrokers.com.

  •  To summarize, the investment is setup by Strategic Capital Management (SCM) in such a way that you authorise SCM to place orders on your account which is held with Interactive Brokers.

if you open an account to trade the SPI Swing Trade1 system in the next few weeks we will waive the $99 per contract per month system lease fee for all of 2012.

An Investment in the SPI200 Swing Trade 1 System Has a Number of Benefits Including:

  • A Passive Investment
  • Non Correlated to Traditional Asset Classes like Share and Property
  • There is Potential for High Returns Over Time Due to the Leveraged Nature of Futures Trading
  • Professionally Managed
  • Customised to Your Risk Profile

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FEES & CHARGES

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We charge a transaction fee of $25 AUD per contract traded to have this system traded for you and a 2.0% per annum management fee. There are no additional charges and you receive interest on your account. You save money on data fees (Approx $600 per year), trading software ($2,500+), for a limited time we will waive the $99 per month system lease fee ($1,188 per year) and finally if you were to purchase a similar system it would cost you ($2,500+). In your first year, assuming 50 trades your brokerage cost per contract is $2,500 and 2% management fee on $25k is $500 and you would still be paying brokerage elsewhere anyway. Therefore by investing with us you are saving over $3,788 in setup and data fees in your first year and probably getting a better result than if you traded yourself.

 

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In order to ensure that our clients receive the best fills and performance possible for the SPI Swing Trade  trading system we are limiting allocations to this system to less than 25 contracts and we are very close to this level already! After that the system will be closed to new investment. Act now before you miss the chance to participate!

P.S.  The SPI Swing Trade 1 trading system is a one-of-a-kind investment that goes above and beyond every other traditional style of investment. We aim to deliver quality execution, a profitable trading experience and value for money in every regard.

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“Nick Radge – Director – The Chartist”

I have known Andrew on a personal level for many years and in that time have done considerable business with him and referred clients to his unique services. His personal attention to detail and his solutions to client requirements are to be commended.

www.thechartist.com.au
Nick Radge

 

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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.