Monday, January 23, 2012

Lifetime Pilot Performance: 1081.06%

S&P 500 Long-Term Investment Equity CurveHere we provide the big-picture, long-term performance stats for the Chart-Cast Pilot portfolios.  Our spreadsheet breaks down returns by market, account-type, and trading/investment strategy.

Long-term investment account statistics go back as far as 1973, while Mid-Level and Short-Term trading stats reflect performance from 2007 to date.

This historical account provides testament to the efficacy, benefits, and rewards, that accompany adherence to proven trading and…

…investment strategies, which have delivered robust returns over various market cycles. 

Incorporating three distinct accounts for each market/stock traded provides for a level of strategic diversification that is virtually immune to periods of high correlation such as we have experienced over the past several years.

We have broken down each broad market and individual stock held within our portfolios by engagement at three distinct timeframes, and we have listed each under the “Account Type” column.

The year in parenthesis following LT (long-term) Investment Accounts denotes the year in which our strategy engaged that market or stock.


For long-term engagement in the broad market equity indices, under the “#Contracts/Shares” column, we represent an initial 10K exposure to these indices as the indices themselves are not actual tradables. 

For long-term engagement in Gold, Crude Oil, and the Long Bond, we recorded performance basis a single continuous futures contract.

Mid-Level and Short-Term trading accounts contain the symbol for the actual tradable under the #Contracts/Shares column.

The “Profit-Factor” column is a TradeStation generated measure of profitability. The Profit-Factor reflects the amount made relative to the amount lost. By definition, a value greater than one means that the total number of trades recorded contain a positive net profit. The higher the profit factor the greater the level of profitability.

Generally, long-term investment accounts will trade much less frequently. Mid-Level trading accounts focus engagement on the intermediate term timeframe and as a result, they typically generate a greater number of trades vs. longer-term core investment positions. Short-term trading accounts focus engagement on the short and near term. These accounts generate the greatest number of trades.

The “%Profitable” column displays the percentage of trades that were profitable amongst those recorded for each strategy. Note that high win rates are not typical for robust strategies that perform well over various market cycles. Robust profits are quite common amid strategies that sport win rates of 30% and less.