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Strategy

Strategy

All successful futures trading will involve specific formulas. Our main focus is on proper Money Management, Diversification, and Strategy. We apply these elements in our proprietary systems for trend following the futures markets.

MONEY MANAGEMENT

The TrendTracker methodology has three different portfolios that utilize many different strategies and trade various futures markets, such as Swing Trading, Day Trading and Swing Reversion. The markets that we have put our focus towards are the Russell 2000, Emini S&P 500 and the Emini S&P MidCap 400. Each portfolio is broken down by the number of strategies that it trades, adding more diversification and protection from adverse movements in the markets.

Money Management is key when entering the markets, which is why we have hand-picked the specific markets to ensure diversification within the three portfolios. The systems have very disciplined forms of money management but provide some of the highest profit factors in these markets, while carrying verywell balanced ratios (like Sharpe, Sortino and Sterling).

The various strategies that we use have protective stop-loss orders (the smaller of a volatility based stop or a specific dollar money management stop) and we apply market or stop market orders to ensure real-time trades will be filled.

OUR DIVERSIFICATION

Depending on which TrendTracker portfolio is used, you will need a minimum of $10,000 to $50,000 to trade these portfolios. TrendTracker I will use a “starting out” model of diversification. As you move up to TrendTracker II and TrendTracker III, the portfolios will offer a wide range of diversification with trading several strategies on several market categories to capture more opportunity and be more risk adverse.

The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio, as you see from the track records. Diversification strives to smooth out unsystematic risk events in a portfolio so that the positive performance of some investments will neutralize the negative performance of others.

 

STRATEGY PLAN

The Day Vol strategies will use various different indicators. Such as, trending, volatility (daily value of the VIX) and momentum in its process to determine when to enter, exit or bull / sell active long and short positions. The day strategies only trades on days that statistically have a higher probability to win and will trade one to three time per day, on average. All of our suggestions are either market orders or stop market orders to ensure the best chance of being filled close to suggested entry. There are no trades that should be held overnight. We set a protection stop-loss on all suggestions.

We utilize a Swing Reversion strategy, basically countertrends, we have designed specifically for stock indices. These strategies’ utilize a handful of high-probability triggers and take a position when a sufficient number of them are long or short. It averages 1 trade per month, per market and holds those trades for an average of 5 days. The strategy has a protective trailing stop-loss order (the smaller of a volatility based trailing stop or fixed money management trailing stop) and uses market or stop market orders to ensure real-time trades will be filled.

All the CBSwing strategies we apply to the market are also countertrend swing strategies designed for stock indices. These strategies follow the adage of “do not go against the Central Bank“. The strategy will not go long when the Central Bank is selling and will not go short when the Central Bank is buying. The various strategies we use have protective stop-loss orders (the smaller of a volatility based stop or fixed money management stop) and uses market or stop market orders to ensure real-time trades will be filled.