Dynamic System
Dynamic System is a trading system developed by John Palatine which follows long-term trends in the S&P 500 stock index with the help of trend following methodologies. He uses this system to manage client funds successfully since 1999.
Upon numerous requests, its trading signals were made available for the public in 2008 through a quarterly subscription service. To subscribe to the trading signals, please visit our main web site for further details.
60.76% in 2009 and 42.47% in 2008
In the first half of 2009 markets were still in a serious downtrend until March. Since then the economy has started to recover, although there have been many pessimists that claimed the downward spiral is long from over. We did not care about the doomsayers, and merely followed our trading signals which suggested to get long-biased again in April.
| # | 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:* | 60.76% | |||||
Markets have been extremely fierce in 2008, vanishing many trader’s accounts and forcing them out of their positions because they could not meet margin requirements anymore. As trend followers, we were correctly positioned as soon as worldwide indices were about to turn around in January. See the specific trades that Dynamic System has signaled, and which we took advantage of.
| # | Type | Entry | Entry Date | Exit | Exit Date | P&L % |
| 1 | Short SPY | 140.68 | 01/08/2008 | 133.87 | 03/19/2008 | 4.84% |
| 2 | Short SPY | 136.26 | 04/08/2008 | 136.26 | 04/16/2008 | 0.00% |
| 3 | Short SPY | 142.67 | 05/19/2008 | 126.00 | 07/17/2008 | 11.68% |
| 4 | Short SPY | 128.72 | 09/02/2008 | 126.31 | 09/19/2008 | 1.87% |
| 5 | Short SPY | 123.15 | 09/22/2008 | 99.20 | 11/04/2008 | 19.45% |
| Cumulative Return in 2008:* | 42.47% | |||||
* Individual returns can vary slightly depending on how many lots were traded for the account. We assume usage of 100% of the available equity.