"The following trading programs are my personal
recommendations based on actual trading experience combined with extensive, historical back-testing"
ABERRATION by Keith Fitschen
The ABERRATION trading system was developed in 1986 to trade a basket of commodities. It profitably trades all eight commodity groups: the grains, meats, softs, metals, petroleum products, currencies, financials, and stock indices. In testing from 1980, the system has averaged about $90,000 a year trading 56 world-wide commodities; this is on a one-contract basis. These results were achieved using the exact same rules and parameter value for each commodity.
The system trades each commodity 3 to 4 times per year and is in each market about 60 percent of the time. The program is applicable to accounts starting at $15,000 and is the backbone of the trading accounts I manage.
The longer term trading approach yields an average profit per trade of just under $850 after slippage and commission are deducted. The equity build-up curve is shown below.
ASCENDX by Keith Fitschen
ASCENDX combines two S&P 500 commodity trading systems; a counter-trend system that uses daily bars (ASCENDX-D) and a trend-following system that uses hourly bars (ASCENDX-H). The two systems use different time frames and entry methodologies, and are complimentary and very robust when traded together. Both systems have impressive performance over the life of the S&P in its commodity form, which is important, as most S&P systems lose effectiveness after a short period of time as market dynamics change. ASCENDX is applicable to accounts starting at $15,000 trading the Emini S&P 500 and $75,000 for the full size S&P 500.
ASCENDX Daily & Hourly Bar Combined Performance
Because the two ASCENDX systems trade different timeframes (daily bars versus hourly bars), and because one is a counter-trend system and the other trend-following, the individual equity curves are not highly correlated. This results in improved performance when the two are traded together. The following is the resultant equity curve if a one-lot full-size S&P contract is traded each time either of the systems issues a signal.
An important feature of this system is the ability to trade an E-Mini S&P contract. Many traders' account size will not allow the trading of a full-size S&P contract with this system because of the drawdown potential. But the system makes enough profit per trade to make the trading of an E-Mini S&P a viable option. The chart below shows system performance on the E-MIni contract since it was released in September 1997.
Since September 1997, the total profit trading an E-Mini with both systems has been $49,970. During that time the largest drawdown was $6,554. Note the drawdown benefit when an E-Mini is traded with each system. Alone, the daily-bar system's drawdown was $5,041, and alone, the hourly-bar system's drawdown was $4,321, but traded together the max drawdown is $6,554, only $1,513 more than the daily-bar system alone. If a trader can risk that extra $1,513 drawdown, he potentially reaps a huge reward, more than $22,000 in profits.
If you would like more information on either of the trading programs I've presented or have any questions, please fill out the form below or contact me directly. Thank you for visiting and I hope to be of service in the future.
877-276-4633 or 949-376-2800
Read the Hypothetical Performance Disclaimer
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Hypothetical Performance Disclaimer
The performance information in this literature is hypothetical. The following CFTC disclaimer should be noted:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Commodity futures trading involves risk and may not be suitable for all investors.