Wednesday, April 13, 2011

ESCombo is moving

The past few week has seen a big jump in interest in my ESCombo system and my website traffic meter has jumped by 50%. The system has gone from 3 or 4 traders to about 15. The number of contracts traded is still very small though, so there is no need to worry about overloading at this point. One trader volunteered the following comments:

"I am a subscriber to SIFTradingSystems ESCombo strategy which is being traded for me by an autotrading broker. I have been autotrading this system for over six months and have found actual trade results to be consistent with prior published results." - Chuck

A quick look at the monthly numbers I've posted here shows why. January, February, and March were three pretty good months when a lot of system traders were finding trading rather difficult. This system has been traded by others since the early fall of 2010. The current equity highs on the TradeStation backest reports are no longer hypothetical. People are actually trading and seeing their accounts grow. As with any type of trading, past results, whether hypothetical or real, are no guarantee of future performance, but everyone wants a proven performer and so do I.

It's also worth restating the benefits of broker managed trading. Most traders are their own worst enemies because they refuse to follow their own rules and advice. Letting someone else run the trades removes some of the temptation to change horses in the middle of the stream. There is some cost for this of course, but I think most people will be better off with a managed account rather than doing it themselves. I am of the opinion that people who have reached the point of day trading stock index futures are probably quite risk averse. This makes it hard to take the inevitable drawdowns. Just make sure you set your loss limit before you begin and don't change until you hit it. Systems are going to fail, but the ones that work will cover a lot of losers. It's important to diversify in system trading, just as you would with stocks or mutal funds.

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