Chuck Le Beau's System Traders Club
REMARKABLE S&P SYSTEM
Trades Long and Short - 83% Winning Trades - Adaptive and Robust Logic
BACKGROUND: Our many years of testing various trading methods on S&P futures has led us to conclude that we are most comfortable trading S&Ps using counter-trend strategies. We believe the Remarkable S&P system will prove to be a highly reliable system that buys on dips and sells on rallies. Unlike the Prudent system which trades only the long side, the Remarkable System trades both long and short and has a truly "remarkable" 82% winning trades on the long side and an even more "remarkable" 84% winning trades on the short side.
STRENGTHS OF THE SYSTEM: The Remarkable System uses Average True Range bands to set up entries so that the buy signals occur near the low band and the short signals occur near the high band. The ATR bands work well for this purpose because they contract and expand rapidly and stay in tune with changes in volatility. We believe this design makes the system very adaptive and robust. The Remarkable System averages about 12 trades per year and tends to hold winning trades for about eight market days while generally cutting the losses after 12 or 13 market days. In our ten year test period the system proved to be quite profitable. Trading one contract would have resulted in a hypothetical gain of $200,837 with a maximum drawdown of $14,375. As previously mentioned the system is remarkably accurate with 83% winning trades (96 winners out of 116 trades).
WEAKNESSES OF THE SYSTEM: Since the Prudent System and the Remarkable System both enter on dips there will be some occasional overlaps on the long side. It is also possible for the Remarkable System to go short while the Prudent System is still long. In spite of having 84% winning trades on the short side, due to the strong upward bias in our test data the short trades accounted for only $44,700 (22%) of the total profits. In a more neutral market the short profits should increase.
The system has a large money management stop ($4,500) and any series of consecutive losses would require a substantial amount of capital to maintain trading. Due to the ever increasing volatility in the equity markets, larger drawdowns can be expected. Conservative traders might want to use the Remarkable signals on less volatile markets or mini-contracts.
SUMMARY: The logic of the Remarkable S&P system is simple and sound. It has been carefully designed to be highly adaptive and robust. In our opinion the system is indeed remarkable because it can trade the very difficult S&P market either long or short with unusually high winning percentages. We believe the system may have broad application as a market timing tool to assist in mutual fund timing and the trading of individual stocks. Like the Prudent system, the Remarkable S&P system features our popular on-screen order display.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY 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 PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
The Remarkable S & P System is priced at $250.00 and comes with complete documentation, fully disclosed rules and ELA code for TradeStation and SuperCharts 4.0. To purchase the system using your credit card phone 310 265-9776 or send by fax to 310 265-9556. Members may also use our online order form on the web site at http://traderclub.com/systems_order.htm
For more details about system performance including an equity chart and a complete trade by trade report please go to http://traderclub.com/systems_remark.htm
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