[TimothyStrickland]

I feel like almost everyone here has the same experience. My first year and a half after I made my strategy was unsettling. I made my strategy and then the first month I went live it immediately went into drawdown. 4 months later the drawdown was worse than anything I had backtested. Fast forward to today and my system is up over 200% since inception, but it’s been a bumpy ride. I think the market just wants to test your emotions to make sure you have what it takes to make the next 1000 trades! lol

I don’t know your background Eddie but you are in the right place. I wish I would have found Nick before I spent over 100k trying to find someone who could teach me how to trade profitably. It took me 2 years of essentially getting scammed before I found Nick. Most traders selling a course these days are not the most savory of people. I think for every Nick there are 9 so-called traders who are just selling a course but don’t have a clue how to make money in the market.

[TimothyStrickland]

Does anyone trade in the United States and work with a good tax advisor? We have been using one but they are getting worse and worse every year and hardly responsive. Now that my business is making good profits, I would like to find a better one. Any suggestions?

[TimothyStrickland]

MRV HFT: +5.3% (-25.28% Drawdown)

NDX Momo: +1.4% (-9.57% Drawdown)
NDX Aggressive: +9.6% (-5.96% Drawdown)

[TimothyStrickland]

Looks like one of our tenants is exercising her option to buy one of the properties I own, due to asset appreciation. This will leave me enough capital left over to design another system and fund it, or buy another property, not sure which I will do yet. I would like to make a short system. Nick, would you be up to helping me put one together? Extending the mentor course again? haha. I can certainly do it myself but want to use your expertise for as long as I can.

[TimothyStrickland]

Ouch!, what hit the ASX Momentum so hard?

[TimothyStrickland]

Rough month Glenn. You said you are in 3 positions only for the ASX100 Rot? I am curious, what was your max drawdown in testing? That is a similar setup to my NDX Aggressive.

I ask because I think you mentioned your drawdowns weren’t that bad. My max drawdown for the NDX Aggressive was pretty high, I think around 35% maybe even 40.

[TimothyStrickland]

Great results on the WTT, especially in this rocky market.

[TimothyStrickland]

September 2021

MRV HFT: -5.8% (currently -29% Drawdown).
NDX Momo: +1.1% (-9% Drawdown). Positive thanks to TSLA
NDX Aggressive: +2.8% (-14% Drawdown). Positive for the same reason.

[TimothyStrickland]

Either way, looks like my MR system is starting to pull out of it while my momentum systems are continuing to set record highs with MRNA and TSLA.

[TimothyStrickland]

Glen, my MR system has been taking a haircut as well, think its just the timing at the moment.

[TimothyStrickland]

Julian,

Are you using different brokers for your other systems? I have multiple brokers to hedge broker risk. I used to use FXCM for some forex trading years ago but then they got caught trading against their clients and were banned in the US.

[TimothyStrickland]

Len, that is the first I have heard of that. However, it certainly might be worth looking into. Might be more work then its worth though if it is a constant balancing act. Perhaps you could just build it into both systems? Not sure.

[TimothyStrickland]

Terry, I think they both matter. The leverage AND the fact that you are only in the trade during the day and perhaps the way the market reacts during the day as well. I’d be curious to know what context you are referring to, as leveraging an MR system isn’t possible in the US, unless it was during the day only but then it wouldn’t be an MR system. There is a way to trade tick by tick but Nick doesn’t teach that and that requires a ton more coding. For the record I do plan on learning that at some point so I can potentially trade other asset classes like Forex.

The same concept applies in a long term system, I have done lots of testing and if you are able to leverage a rotational system, the returns are extremely attractive, but the drawdowns can be quite intense.

[TimothyStrickland]

Scott, yes. I think someone had asked this last year as well when the systems were screaming. A typical drawdown for the NDX aggressive is 25% and was as high as 35% in the backtest. I counter that by keeping the NDX aggressive portfolio size relatively low compared to the others.

[TimothyStrickland]

Good topic Julian.

Agree with Nick that I think that is a great goal to have. Make the most returns with the least exposure as possible. I think initially when I tried to build systems, I was trying to get the performance of my short term systems as high as my long term systems. I soon figured out that this wasn’t really possible (maybe in theory), but over many tests I saw the same trend. The less exposure time, typically the worse the results, at least in terms of CAGR. I think the reason why the MOC can match the MRV is the x4 leverage right? I don’t think I was able to get a MOC to perform the same as an MRV using the same amount of leverage. This is one reason the MOC is so attractive. I would like to do more testing in this arena but just haven’t had a lot of extra time recently to do so.

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