I wanted to send out an open invitation for all to see the system and put it on your watch list. It is now fully operational and should become a bit more active than the last few weeks.
Our objective is to have a 100% realism factor with as close to 100% positive trades as possible. This is a no nonsense system. We do not take huge risks (like trying to trade 100 contracts at a time - recipe for inevitable disaster) like I have seen many systems here attempt to do. We do not scalp partial points which make it impossible for most to catch. The goal is to make strong, steady and reasonable gains over the long haul through smart analytical trading and not by trying to hit the home run every time or by attempting to nibble away at the market 100 times a day.
I have no doubt Six Sigma Trading will deliver quality results.
I will watch six sigma for a while (at least two months of active trading), and if it seems like a mature system, I’ll subscribe. The most important criteria will be how you handle draw-downs, your judicious use of stop-losses, and overall money management.
I’ve seen too many systems that keep their losing trades open, and even average down, hoping for a recovery. Other than the obvious, the problem with such a strategy is that you’ll go bust if there’s a sharp market decline (example: QQQQ over the past two weeks… you could average yourself down to self-destruction).
Money and trade management is key. There are times for stops and there are times for averaging. The latter requires appropriate planning in terms of contracts traded. The analytics of the system will be able to dictate if/when to use each and how to regulate contract number.
Not sure you’ll get a realism factor of 100% using limit orders. I’ve used other systems here that use limit orders and never come close to the posted fills, frequently getting from one to three ticks slippage on each side. To me, the systems that use market orders have a RF that is closer to my actual experience. Others have posted to this same effect. I’ll watch your system myself to see how you trade.
I will watch your system, but it would help to have a bit more basic information. Is there something like a track record? Does the system trade as infrequent as the two trades so far indicate? Does the system trade at certain times of day? It is difficult to trade a system, that trades once a week, but needs me to sit in front of the computer all the time to place a limit order which will be filled a minute later.
Peter
To date, there is no public track record for the system which is why I have chosen C2 as an outlet. This will provide the means to develop a chartable record.
The system will trade much more frequently than the trades listed so far as the last 2 months was a slow trial for me. I am taking it fully active here now. In general though, the system will have on average about 3-4 trades per week, sometimes more, sometimes less.
The market is a very dynamic entity and the system simply generates signals based on where the market goes. There is a strong element of predictability in the system so signals can usually be put out at least 10-15 minutes in advance and sometimes as early as a day in advance. As an example, the last trade was initiated yesterday about an hour in advance as a short near 1273 futures. The high was 1274. However, I really have no way of telling in advance how many times it will trade or when it will trade until the signal develops. That’s simply the nature of the market. I can tell you though that all trades are generally sent out during market hours. What happens overnight is generally not relevent for Six Sigma as it is already incorporated into the bigger scheme of the strategy.
Thank you for the additional feedback. As a customer, my biggest concern is with system vendors who break their own rules. It is quite common to find vendors who advertise their system “won’t average down” and “will apply stop losses” - only to find them blow their investment capital away, simply because the vendor “had a feeling” things would get better. I’d much rather be with a system that bleeds commissions at a loss 90% of the time and makes me a good profit 10% of the time than one that bleeds real money 40% of the time and makes a profit 60% of the time. But I think you understand that already.
Anyway, I’m tempted to try out your system even though it does not yet have a track record. The problem I find with vendors is that most of them really don’t think or act (or care) that they’re affecting subscriber’s money. They treat their trades as if it were just a game, or it never occurs to them that someone may really have a hundred thousand dollars committed to their system, which they are now responsible for.
I understand where you are coming from. Anyone serious about their system though will certainly take into consideration that others may be using it. After all, everything is recorded. Six Sigma will not claim that it does not average down or use stops because as previously stated, there are times to do each of those, and yet there are other times not to.Every situation is unique and Six Sigma does it both ways. The ultimate goal is smart trading and consistant long term gains. While pinpoint accuracy is desired, there are times when a range of entry is defined. Think of a rubber band…if you pull it 6 inches or pull it 7 inches, it will snap back in both cases. Entry at the 6 inch mark doesn’t mean a bad entry nor does it always require a stop. But one must certainly adapt to a changing market when it is called for.
One thing any system cannot account for is how it will be used by others. In general, a good system should be followed according to entry and contract number if able. However, I cannot prevent someone from abusing signals and going all in on their own. Even an excellent system will lead someone to disaster eventually if they “overtrade it”.
