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> Don't be a sucker and visit that site where John Blucarr is pointing
> you. The system has over a 30% drawdown on your equity making 38%
> per year.
With all due respects to Jimmy, that system is a helluva lot
better than he thought.
Granted the results posted are all hypothetical and in-sample.
They're still amazingly good.
The 30% drawdown results from a single $31k loss on 4/14/00,
which was a mighty dangerous time to be running an EOD system (or
almost anything else for that matter!). $31k loss on a $100k
account produces a 31% DD. But if you had any sense you would
have reduced your leverage in conditions like that, so the % DD
would have been less. But other than that one loss, the largest
losses are in the $10k-$12k range. There are only 17 trades out
of 570 that take more than $10k of heat during the trade. Only 5
of those are more than $15k.
The returns are also a **LOT** higher than 38%. Assuming a $100k
account, and trading 1 SP per $100k in the account, the system
turns $100k into $4.59 BILLION in 7.748 years, for an annual
return rate of **300%**. That assumes you can trade over 45000
SP's, which might present a problem. :-) But the 300% rate of
return applies for smaller accounts too.
If -- and this is a big "if" -- this system continues to perform
anywhere near this well in realtime trading, I will be VERY
impressed.
Gary
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