As of today, the AlgoTrades V1 algorithmic trading system has been completely flat in the market because of increased volatility and lack of a defined trend. As we mentioned in an earlier message, the original AlgoTrades trading system (V1) is designed to trade trending markets very efficiently.
Over the last 8+ months the market has been trendless; experiencing strong price rotation where the market moved sideways with increased volatility. The AlgoTrades V1 trading system is doing exactly as we wanted, protecting equity by identifying price rotation and staying out.
All successful algorithmic trading systems attempt to accomplish the following objectives with quantitative analysis:
– Protect Equity
– Limit Risk of Loss
– Generate Profits
These three items are core to the development of any professional trading algorithm. The purpose of this general rule is that an automated Algorithmic Trading System is actively managing and balancing the opportunity for success (profits), against the opportunities for failure (Risk of Loss and Protecting Equity). This balance is often difficult to achieve.
The AlgoTrades V1 system,by the nature; being an algorithmic trading system with internal quantitative factoring, is capable of accomplishing a good portion of this equation. Using its built-in analytical features, the AlgoTrades V1 system has attempted to stay out of the market through most of this price rotation. This makes the V1 system very conservative and allows for profit opportunity only when the markets are trending well.
At this time, we at AlgoTrades would like to announce the future release of our AlgoTrades V2 trading system and explain to you why we are so excited about the improvements we’ve worked so hard to achieve. As we’ve stated above, the AlgoTrades V1 system is a trend following system; capable of trading trending markets very well. The new AlgoTrades V2 combines the strengths of the V1 trend following system with a new “Trend Rotation” trading strategy including new quantitative analytical factors. Allow me to provide a bit more detail about this new AlgoTrades V2 system.
Over the past 8+ months, we have been actively developing and running a companion trading strategy for the AlgoTrades V1 system. We call it “V2”. V2 is a price rotation trading strategy designed to complement V1. By combining the rotation strategy into V1’s trend following system, along with developing the proper quantitative factors to control the trading actions, we believe AlgoTrades V2 will now be able to offer you a more active solution that is more aggressive including small drawdowns, more profits and greater opportunities for your trading needs. Now, let’s take a look at some real-life statistical data on the V2 system.
Over the past few weeks, V1 which is the current live trading system has taken no trades, yet V2 has taken a number of active trades and has actually out-performed the S&P almost from the very beginning of its activity. Remember, V1 is still seeing rotation and is not trying to trade within this price rotation/range.
This graph represents actual live trades from the AlgoTrades V2 trading system. We specifically selected the date range from July 13 to July 25 because of the extreme price rotation in the E-mini S&P (a 40 point sideways rotational range with price gaps, strong rallies, strong sell-offs and a few narrow range days); a very difficult time to trade to say the least. But take a look how the system handled the recent market activity below.
Taking a quick look at these results, you can see the V2 trading system was actively trading within this range and experienced a few minor draw-downs in the range of $700~800 on average. The total returns over this 10 trading day span was $6,651, or about $665.10 per day. The buy-and-hold results of the S&P 500 index over this span resulted in a loss of -$927 total, or a loss of about -$92.70 per day.
The AlgoTrades V2 system outperformed the E-mini S&P by a tremendous factor. During a time when most traders would have struggled greatly with gaping price rotation, the V2 system continued to generate profitable opportunities nearly every day. Additionally, while the S&P rotated lower, the AlgoTrades V2 system continued to achieve new equity highs (ROI).
I will add that the V2 system still takes minor losses within extreme price consolidation (note the slightly sideways area on the equity curve). I don’t know of any trading system that is able to completely eliminate all losses in any market environment. When comparing the V2 system gains vs. risk, we see a ratio of 9.8 : 1.
V2 Algorithmic Trading System Performance
As you can well imagine, we are very excited to be able to bring our very best solutions to our valued AlgoTrades members and we are offering a free 6 month subscription extension of for all existing V1 members. We truly believe the new AlgoTrades V2 trading system is a tremendous improvement to our existing V1 system and we believe the V2 system will continue to provide outstanding performance for our clients going forward. Honestly, I don’t know of any other system that is capable of outperforming a sideways market by nearly 10:1 with very little drawdown, so I am very excited.
We will continue to update you prior to our release of the new AlgoTrades V2 on September 1, 2015. Again, all our original AlgoTrades V1 members get a FREE 6-month extension and the opportunity to use V2. We want you to experience the capabilities of our fantastic solutions and we believe you will be amazed at its abilities to profit from nearly any market condition.
The improved AlgoTrades V2 trading system actively manages and balances the core factors of both tending and rotation price action to deliver superior opportunities with balanced risk and equity protection for all our members. This is a tremendous achievement in terms of the advancement of the AlgoTradesV2 Foll trading solutions and we are happy to be able to present this opportunity to you.
If you are currently trading our system live, then you are not required to do anything. We will extend your subscription for another 6 months and on Sept 1st your trading system will be automatically upgraded to the improved V2 trading system.
Stay tuned, more good news to follow!
Questions? Email: Info@AlgoTrades.net Toll Free: 1-844-692-5468