This trading program has met stringent development criteria by us for the Emini S&P (ES) market and was developed several years ago (2008). Over this time, we have observed its performance and the system has met or exceeded performance criteria of its design while no parameter has been changed. This system has produced excellent returns with managable draw-downs as is shown in the following performance reports. Please note the Trading and Performance disclaimers below.
From the desk of Rob Mitchell
I have been writing automated trading systems since the early 1990s.
Systems logic is written very differently than discretionary trading, because you need to have specific rules. There is no “maybe” and “looks like”, and most rules are fixed… most discretionary traders could learn a lot from this logic and the kind of thinking behind it.
After writing literally thousands of trading systems I have learned Systems can be a lot more flexible than one might think. The systems can also outperform many times where a discretionary trader might fail becasue they will trade where many will find it uncomfortable to do so. This ability to go against a herd mentaility that we have wired in us is the key for many traders.
Recently I have been asked by many traders if I have a system that is fixed, and they can just “plug and play”. I do. In fact much of my best trading is from the management of automated systems. Often the best systems are multi modal systems. These systems are often superior if they are designed right. You might have 7-15 uncorrelated models / strategies brought together into one superior system. This kind of design makes up some of the very best strategies in the world.
Systems can often fail because the developer backtests the system and does not give it sufficient time to become proven. Further, there are certain statistical tests that we use that are largely unknown that help us to identify if a system is on solid statistical footing. Such tests are called Repeated Measures Analysis. A huge number of systems available out there would never stand up to such tests- especially if they are made up of correlated technical and price based measures.
I wait 1.5 years and sometimes up to 3 years before I release a system. I find that three years could be good sign because many scenarios of volatility occur and the system becomes proven in real time before I will release it. This makes finding a good system almost impossible. All the right things have to line up.. This is why you do not see me coming up with new automated strategies all the time. A good automated strategy is a gift, and they often come that way but never without a lot of hard work and time.
Also, I don’t change code, and “tweak” because a truly good system could run for many years on the same principle.
I have a developed a trading system for the Emini S&P, that trades fairly infrequently. This is not a broker system (brokers often prefer to promote systems that trade a lot), but a system that trades only when things are lined up and the odds are in it’s favor. If you are looking for this quality of system for the Emini S&P, this is the one. Like all systems, it will have losses, but the percentage of wins is HIGH.
Many discretionary traders are “exhausted” from day to day trading, and I get it. This sort of trading is not for everyone. In fact it is not for most. Many years ago a computer system called Deep Blue beat the world’s best chess player, Gary Kasparov…actually…Here is the real story: Kasparov, walked away from the fight. He was exhausted as he realized that the computer can outwit him while thinking and computing millions of scenarios that he could not compute. This is what many of the traders feel today, that there is a force that works against them all the time.
Recently the CFTC charged a trader in the UK with Spoofing the markets. Spoofing is when you place a large order of orders without the intention of buying or selling, thereby you cancel right before it happens. What amazes me is that this happens daily by algo firms, and yet, the authorities choose to pursue a small trader who actually “gamed the gamers”. Trading down at the level dealt with by PhDs from MIT and Stanford is futile. In order to be successful, a trader must trade at a higher level than those players in most cases to be successful. My point is that you need to trade a system that looks at larger time frames, and yet is not under attack by algos.
I want to offer this system to a selected group of guys that understand the benefits of trading and automation. I will guide you through the installation, process and monitoring of the system. If what I am saying above makes sense to you, then contact me for more information and a performance report. By making this request, you also agree you have read and understand the disclaimers below.