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Key elements for a good solid trading strategy

These are the prerequisites Franck Draheim, our strategies designer, demands from each of one of them to qualify for our mutualized automatic trading system:

1Over 12 years back tests over as many market conditions as possible.

2Make sure to be as close as possible to a positive return every year since 2004.

3Tradestation adjusted profit proof results: we cut the achieved results of each algorithm by substracting from the winning trades their square root, and incrementing losses by their their square root also. Most systems will break down on such a harsh formula testing. We make sure the resutling «adjusted profit» keeps very strong in order to validate an algorithm.

4A fair balance between long and short entries based upon market patterns recognition.

5Each trade has to return a substantial average gain, in order to sustain execution fees or possible slippage, unlike scalping programs that may look good, but often result in overexecution and destroying the profits.

6We do not use MACD, Stochastics, RSI, nor any indicators that can be optimized according to the moment. All our strategies are price driven. That implies our algorithms are immediately ready whenever there is a new contract roll out. This is where most systems may break down and show a discrepancy between theory and actual execution.

7All tradestation backtests are provided with the “Look-Inside-Bar Backtest” flag enabled and based on 1-min bars in order to give you the most reliable and coherent backtest results possible.

Disclaimer

Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. 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. All trades, patterns, charts, systems, etc., discussed in this advertisement and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher.