23.27% Return for September 2011

. S&P futures opened the month of September at 1211.75 and closed the month at 1125.75, losing 86-pts and shedding (-7.09%) of its value. In contrast, the following proprietary counter-trend trading strategy delivered 282-pts or +23.27% in S&P profits, which is an alpha of 30.36 meaning that it beat the stalled benchmark by more than 30%. September has been a horrendous month for all types of investment and trading disciplines regardless of timeframe. In fact, one can argue that the entire year of 2011 has provided a great deal of challenge for nearly all investment classes.   Why is this happening? It is happening because there remains a compelling list of unresolved structural flaws still weighing down upon the global financial sphere. If you want to gain insight and exposure to disciplined trading strategies like this one, subscribe to the PILOT today. . Bucking the Volatile Whipsaw Trends in September About the only place to have hidden in September was amid a strategy that deployed a counter-trend tactical approach to the manic vicissitudes of the S&P 500. The chart below reflects the $14,140 in monthly profit achieved counter-trading a single contract against the bipolar price action in the S&P futures throughout the month of September. > Documented below is the list of trades associated with the outstanding results this short-term counter-trend trading strategy achieved in the month of September: In the month of September, the strategy executed 18 trades. Of the 18, nine were winners and nine were losers equating to a 50% win ratio. For the month, the nine winners brought in $14,680 in profits and the nine losers gave back total of (-$1,937.50) in losses. The average winning trade produced a profit of $1631, while the average losing trade produced a loss of only (-$215). . Inputs, Results, and Historical Statistics The applied short-term counter-trend strategy has been in place and executing trades since January 3, 2007. We used US $40,000 to capitalize this short-term trading account. Also included are commissions at $2.35 per side, slippage of $6.25 per trade, and an assumed risk-free alternative return of 2%. . . .> . . . Since 2007, the graph and the mark-to-market analysis table below illustrate this strategies average monthly profit/loss for each seasonal month of the year. The last mark-to-market period highlighted in the table below is not an average listing but rather the ACTUAL results achieved in the month of September. . Conclusion: If you want to gain insight and exposure to disciplined trading strategies like this one, subscribe to the PILOT today. dis~ci~pline/ Noun: Training to act in accordance with rules; drill:militarydiscipline. Activity, exercise, or a regimen that develops or improves a skill; training: Punishment inflicted by way of correction and training The rigor or training effect of experience and adversity A set or system of rules and regulations Activity, exercise, or a regimen that develops or improves a skill; training: A branch of instruction or learning: the disciplines of history and economics . Trade Better/Invest Smarter Joe Russo aka ~ the PILOT Publisher and Chief Tactical Strategist Elliott Wave Technology Elliott Wave Technology provides a suite of Winning Solutions designed to assist those who wish to trade better and invest smarter based upon the practice and deployment of proven trading strategies in concert with expert and unbiased chart analysis.