February 28, 2011
Automated Trading System Strategy Review
We finished another profitable session of day trading our favorite future markets, but lets take a momentum to review some of the trades the auto trader executed today.
Lets start with the Russell futures, we looked at this last week and lets see how it did again this morning.
We can see 5 trades in the past 3 days in the market, and the results look great. We take profit at different times with the auto trader, scale-out of each trade and move the stop to eliminate the risk on each trade.
Three losses out of 5 trades would normally mean bad things for a trader, but look how tight our stops are and how wide our targets are.
Narrow stops and wide targets = low draw downs on this auto trader = success in the long run.
Let’s see how this automated trading strategy holds up over time…
You can see the past 30 days on the Russell have been great. We want to average $1500/mo/contract and we are achieving this right now.
The most important things I watch on this snapshot is the total # of trades per day, as well as the % of drawdown. I want this to only take the best trades, and it looks like we are getting exactly what we wanted.
Very exciting stuff, you can start with only 1 contract and it takes $1500 to get started.
Lets check the euro currency futures and see how the auto trader did on the euro today…
The euro took 6 trades the last 3 days and you can see they look just as good as the Russell.
There will be a few losses in there of course, but with tight stops those losses wont add up to much. The winners are large, and we move our stop to entry when the profit is there.
As you can see, not a full loss on this chart.
How about the long term results on this euro market with the auto trader?
Long term results on this euro look….dare I say….amazing.
Low draw down, only 3 trades per day on average, and making much more than $1500/month/contract.
Very exciting to see our auto trader making money for us no matter what we are doing in our live trade room.
And don’t forget…the biggest asset for using the auto trader is that it takes away from the emotional pressure we add when we are learning to day trade.
Knowing the auto trader is earning income for you in the background will dramatically speed up the learning process in your trading because you wont be trading to pay the bills right away….take your time and LEARN.
As always, you can more info on how to use this in our members training on Wednesday @ 1130am EST.
