Trendhugger

We finally solved the problem between the system and C2 and so last Friday was the first to trade in full automation. The previous trades were done manually, despite the best efforts, the human intervention and response time was not the same.From this day on, the system will fully auto-trade but we'll be making some commentary along the way. Good luck, system!

This intraday system consists of 5 different strategies created from a variety of indicators, price, and volume. Average trade last between 30 minutes to several hours. All trades close at end of day. All have stop loss and trailing stop exit signals. The system will trade at least once a day. All trades are based on 1 contract/$10000 account.

This system is currently under walk forward testing phase for 2-3 months, after having been tested against 5+ years of historical data. Like everything else, no guarantee is made, thus, the walk forward and no fees are being charged. This period the subscriber is encouraged to track, comment, question the system or developer.

Some time after the last biggest drawdown, I had to pull the plug on it. I tried to restart the program but there was problems between Tradestation and Collective2. Somehow the signals didn't send to C2 and so the trades were missed.

A few week or so ago, I relaunched the system after some rework, adding more strategies to make it more robust and higher profit factor, I upgraded the Tradestation to 8.1 in order take advantage of the OCO and OSO. C2 too had uprgraded their connectivity program to TS. Looks like I've got the new platforms but the signals are still not working. I'm still trying to manually make the entries.

Below is the 5 year backtest equity curve of this strategy.

For some reason, configuration of the program that communicates between C2 server and Tradestation platform produced hard freezes on the system. Essentially, no trades were triggerred. C2 has been notified of the failure but no response as of yet.Changing to enter manually loses the immediacy and lose the correct entry price. We'll notify you when a resolution has been reached. Apologies for the inconvenience.

Yesterday was a worst drawdown since going live at Collective2.com. At 10% of equity. Still within a historical drawdown of 20%. This is still well within an acceptable level for this system. The trade is still open so must stay with signal.

It may not come out a winner but the point is to stay with the system, good or bad, and take every trade that signals the entry or exitbecause we never know when a good trade comes around. If we cherry pick the trade we may miss the right profitble one. In system trading, unlike discretionary, it is imperative to take every trade when signalled

Unlike an stock or equity, a highly-leveraged index future like the RUSSELL 2000 not only goes to 0 (zero) balance or worthless, it can take you to a negative balance. With that in mind, a catastrophe like Katrina or a September 11 or a 1987 Stock Market Crash can wipe you out in a single day, no matter how large your account if you didn't have a STOP LOSS. It's a must and should be on at all times. Fortunately, ER2 trades 24hrs minus the 15 minutes and weekend. Even the weekend should be cautious. Many futures professionals go flat on weekends. Why? 48 hours are very long where anything can happen during that time.

This system is built with a risk management as a high priority to save from blowing out. System counts the drawdowns before counting the profits. This way, you avoid blowing out and be around for the profitable trades.
That said, we have identified 20% as the maximum historical loss over the 3 years of testing. So we start off with $10,000 and immediately drop to $2,000, we close shop. This scenario is a possibility but a less probable event given it has happened only once in last 3 years. The average loss will be between $500-700. While the average win is $700-900 with a win-loss ratio of 60%.