May 6, 2011
- in Uncategorized by schooloftrade
Automated Trading Strategies and Software Review
It’s about that time of the week again, let’s take a look at how our auto trader is doing this week.
Its been a record-breaking week of discretionary trading in our live trade room, earning over $16,000 in 5 days so far in May, and you may assume this would mean big profits on an auto trader too….right?
Let’s start with the Gold Futures, this is our favorite market for the Automated trading system we use.
Let’s start with this week’s trades, and then look at the 90 day results and the monthly averages.
You can see Gold took a lot of trades, more than we usually get, but this was also a week like no other.
We took 14 trades this week on Gold, more than our 1.5 per day average that we usually see, but that’s ok, you can see we made money this week.
· 7 winners x 95 ticks /winner = 665 ticks of profit this week
· 7 losses x 35 ticks /loss = 245 ticks of losses this week
· Net profit this week = 420 ticks profit = $4,200 this WEEK
· This is 1 contract, No overnight Margin
These weekly numbers look great, but remember, auto traders are all about LONG TERM results, so let’s look at our 90 day numbers on Gold.
· Gold earned $12,140 over the past 90 days
· We took 101 trades in 90 days, which means we spent $505 in commissions to the broker (love it) to earn all of this profit.
· Average Monthly Profit = $4,046 / month
· 1 contract, no overnight margin
· Drawdown = $4,000 so that is your minimum account size over the past 90 days
· Very exciting, especially in this rough market right now.
We love how the Gold Futures made money, but how about Crude oil?
Crude Oil had a rough week with such big trending days with lots of chop at the highs and lows. Its ok though, lets see how we did this week, and then we can see the 90 day numbers.
· Crude Oil took 10 trades this week
· 1 winner x 100 ticks each = +100 ticks of profit
· 9 losses x 35 ticks each = 315 ticks of losses
· Net loss = 215 ticks of losses this week on crude oil
Nobody likes having a losing WEEK on this auto trader, but remember to look at the LONG term results to get a better idea of what to expect.
Let’s look at the 90 day results, and the monthly averages on the Crude Oil Auto trader.
· Crude Oil earned $8,100 in the last 90 days
· We took 79 trades, costs us $395 to make this profit
· Average Monthly Profit = $2,700 per month
· This is only 1 contract, no overnight margin
· Drawdown is $5,570 so that is your account minimum over the past 90 days
Ok….so even though we had a rough week, we still have some great results for the month and the 90 day average, love it, this price action will only improve from here till August.
How about the E-mini Russell? Can you trade the TF with the Auto Trader? Of course!
The mini Russell did a good job at staying out of a tough market for the emini’s this week. While most auto traders were getting chopped out and killing their accounts our auto trader was sitting back and waiting for the best times to trade.
Remember, over-trading is DEADLY for an auto trader, so the key is not too many trades, but just enough to make your profit.
· Russell took 2 trades this week
· 1 winner for 200 ticks
· 1 loss for 28 ticks
· Net Profit this week = +172 ticks of profit
· 1 contract, no overnight margin
· Uses a trailing stop to lock in profit
This week wasn’t the biggest week we’ve ever seen, but remember that the long term numbers still look AMAZING.
· The Russell earned $9,300 in the past 90 days
· We took 52 trades to accomplish that, costing us only $260usd to make this much profit
· Average Monthly income = $3,100 / month
· Drawdown is only $1770 so that is your 90 day account minimum
· 1 contract, no overnight margin
The Russell looks GREAT. You can use a small account to start, no overnight margin, and our trailing stop feature allows us to lock in profits and eliminate risk.
We can’t forget about the Euro…
The Euro is by far the LEAST profitable out of our favorite markets to trade, but the numbers still look great.
· The Euro took 6 trades this week
· 2 winners for 78 ticks each = +156 ticks profit
· 4 losses for 36 ticks each = -144 ticks loss
· Net profit = +12ticks of profit
· 1 contract, trades 24/7
We barely made a profit on the Euro this week, which is good, but lets look at the long term results on the Euro.
· Euro earned $3,162.50 over the past 90 days
· We took 51 trades, costing us $255 to do this
· Average monthly profit = $1,054 / month
· 1 contract / trades 24/7
