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They TOTALLY ignored several emails I sent to them when checking out the
MoneyManager product, but they are more than willing to spam me. This in
itself is all you need to know. But there's more.
Here's the latest:
http://www.rinasystems.com/system.htm
These guys act like experts (this should be your first clue). But this
system (that they're trying to get you to salivate over) has the following
MAJOR FLAWS:
1. It traded a single contract since the early 80s. Even though the point
moves nowadays are about 20 times the size that they were back then. So the
profits and drawdowns are getting bigger and bigger as time goes on. Do you
really want to trade a system where the drawdowns get bigger and BIGGER??
2. Position sizing is the MOST BASIC aspect of money management but they've
totally ignored it here. Even though Money Management is supposedly the
entire foundation for their company. Any professional management firm
should be able to tell you what F they're trading.
3. Let's get realistic. They made $41,805 in interest but paid ZERO for
commissions???
A few more problems:
1. The Portfolio Maximizer program can't even show you how your systems
overlap. There's no way to tell how many systems are in a trade at the same
time. Do your systems capture different sections of the market or are they
all lining up together? That's something very important to know, but you
can't get it here.
2. The Sharpe ratio calculation appears to be screwed up when applied to a
portfolio. If I combine systems in EL and look at the overall ratio I get a
number I'd expect, but if I combine them with the portfolio maximizer the
number comes out completely different.
3. The Money Manager program actually suffers from it's own version of the
infamous bouncing tick problem. For example I was looking at a system that
would buy MOC. Then I told the MM program to increase the size if the
position drew down by 1%. The results were miraculously better! Sure
enough, the chart showed a followup buy sometime during the day of the
original MOC entry, PRIOR to the original entry, at a better price!
This is just a smattering, but it gives the general idea. Now.. I think
I'll go daytrade the emini with stop orders, and make the month's rent.
Should take about half an hour tops... :-)
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