Subscribe via RSS Feed

Category: Performance

Dynamic System Generates Amazing Returns

Year 2009 ended with astonishing results for subscribers of Dynamic System. Merely 7 trades (round turns) in the SPY were required to reap a 60.75% increase in our trading accounts, just by following its trading signals. More than twice as much compared to our benchmark, the S&P 500 index itself.

This is on top of our 42% we yielded thanks to its entry opportunities. Here are the specific trades we took last year:

# Type Entry Entry Date Exit Exit Date P&L %
1 Short SPY 91.78 01/07/2009 86.42 01/28/2009 5.84%
2 Short SPY 86.23 02/10/2009 72.97 03/11/2009 15.38%
3 Short SPY 80.44 03/25/2009 82.79 03/26/2009 -2.92%
4 Short SPY 81.38 03/27/2009 83.40 04/02/2009 -2.48%
5 Long SPY 82.73 04/08/2009 93.10 06/15/2009 12.53%
6 Long SPY 88.76 07/13/2009 106.94 09/23/2009 20.48%
7 Short SPY 109.05 10/26/2009 106.42 11/05/2009 2.41%
Cumulative Return in 2009:* 60.75%

Although Dynamic System has not signaled a new entry in 2010, yet, we remain patient. It is common for it to have several months of inactivity as its focus is on exploiting huge trends in the stock market. Trading opportunities are accordingly rare throughout the year. Therefore this trading system is best suited for passive traders and investors.

We want to thank all our readers, especially our clients and subscribers for your continued support. All the best for the upcoming year of the Tiger and may you and your loved ones stay healthy.

You have to manage risk and admit when you are wrong

It was a very short trade for subscribers of Dynamic System and it ended roughly breakeven, although unrealized gains were some 50 points in the S&P 500. This is the drawback for long term traders and trend followers, because we expect much more out of our trades and are unwilling to give up a winning position until we are definitely proven wrong. Our previous trade of over 180 points gain would not be possible otherwise.

At the beginning of my career as a trader and fund manager I acknowledged that the market cannot be predicted and anyone doing so is either lying or a fortune teller. I do agree that it is predictable to a certain degree but we simply do not know for certain. Our protective shield as trend followers is the stop loss order. This order is more powerful than you think, as it is not only a measure to limit loss but also one for protecting profits. It makes trading objective and passive because you let the orders work for you. Gone are the days when you have to sit at the screen the whole day. This is not required if you follow long term trends.

As I’m writing this post, the German DAX is rising strongly, breaking an important resistance at 5750. I expect the U.S. market to follow suit today and make it very clear to any bearish investor that they are not going to be successful.

How Subscribers Are Up 20.91% Recently

It is on the dice that trend following is good for your money. An objective and unbiased approach with strict risk management will make you sleep better at night. I published an entry signal for the S&P 500 stock index back in July (viewable for subscribers only) and me and my clients are still holding this position! I bet my subscribers do too.
My subscribers are up 20.91% on this trade as of today’s closing price and will most likely continue to earn well as the new bull market is shifting to its 2nd gear. This is on top of the 30.29% we generated in the first half of 2009. We do not want to make any predictions but it definitely appears like the bull run is far from over. Our time-tested risk management will get us out of this position with a profit even if the market should drop significantly. This is how easy trend following can be.
Trend following should not be missed in anyone’s portfolio, therefore subscribe and profit with us as soon as a new entry signal is published.

It is on the dice that trend following is good for your money. An objective and unbiased approach with strict risk management will make you sleep better at night. Dynamic System signaled an entry for the S&P 500 stock index back in July (viewable for subscribers only) and me and my clients are still holding this position.

Our system is up 20.91% on this trade as of today’s closing price. This is on top of the 30.29% we generated in the first half of 2009. We do not want to make any predictions but it definitely appears like the bull run has more to offer. Our time-tested risk management will get us out of this position with a profit even if the market should drop significantly. This is how straightforward trend following can be.

Trend following should not be missed in anyone’s portfolio, therefore subscribe and profit with us as soon as a new entry signal is published.