Theoretically, the best strategy in the world 
I started a new strategy which basically run live on my computer in the last 4 years in a simulation mode.
The strategy tries to mimic Warren Buffet’s investment way by riding on the long waves of the stock, making relatively few trades and turning the transaction direction from Long to Short and vice versa, so basically we are all the time in the market.
Warren Buffet buys a stock and holds it for long-term until the company starts showing unhealthy signs and then he sells it.
We will do the same here, however, with one difference:
We will trade long-term volatility.
Whenever the volatility declines we will expected to be in Short and when it is raised we are expected to be in Long.
We will not use Take Profit or Stop Loss orders because we want to ride the long and the natural waves of optimism and pessimism so that we do not interfere with their move by this kind of orders.
In this C2 account we will always use 80% of the account value and we will never use leverage.
The theoretical results are:
An investment of $10,000 since January 2009 to date would make a profit of $15M before reducing tax and trading costs. Really interesting!
Even if we will achieved only 10% of it, this will be great.
Anyway, I expect to see a max DD of 25% and around 12 trades per year in average.
An interesting experiment that I started also in my children’s live investment accounts in TD Ameritrade.
Join me in a demo or live mode for one of the most amazing adventures I’ve ever started my financial life
See below the performance graph and all the trades. All the trades until trade #68 were in back tesing.
All the trades since trade #69 until today were in demo live mode.
From now on, no more demo…Only live and a real money mode
TradeStation Trades List
Type Signal % Profit
1 Buy Buy 0.96% $10,000 $77
Sell Short $10,077 $0
2 Sell Short Short -7.55% $10,077 -$609
Buy to Cover Buy $9,468 $0
3 Buy Buy -10.30% $9,468 -$780
Sell Short $8,688 $0
4 Sell Short Short 0.31% $8,688 $22
Buy to Cover Buy $8,710 $0
5 Buy Buy 3.43% $8,710 $239
Sell Short $8,949 $0
6 Sell Short Short 0.58% $8,949 $42
Buy to Cover Buy $8,990 $0
7 Buy Buy 6.14% $8,990 $442
Sell Short $9,432 $0
8 Sell Short Short 4.93% $9,432 $372
Buy to Cover Buy $9,804 $0
9 Buy Buy 6.57% $9,804 $515
Sell Short $10,319 $0
10 Sell Short Short 57.84% $10,319 $4,775
Buy to Cover Buy $15,094 $0
11 Buy Buy -2.32% $15,094 -$280
Sell Short $14,814 $0
12 Sell Short Short 31.63% $14,814 $3,748
Buy to Cover Buy $18,562 $0
13 Buy Buy -3.97% $18,562 -$590
Sell Short $17,972 $0
14 Sell Short Short -9.89% $17,972 -$1,422
Buy to Cover Buy $16,550 $0
15 Buy Buy -5.60% $16,550 -$741
Sell Short $15,809 $0
16 Sell Short Short 15.77% $15,809 $1,994
Buy to Cover Buy $17,803 $0
17 Buy Buy -4.65% $17,803 -$662
Sell Short $17,141 $0
18 Sell Short Short -5.00% $17,141 -$686
Buy to Cover Buy $16,455 $0
19 Buy Buy 20.75% $16,455 $2,732
Sell Short $19,187 $0
20 Sell Short Short -3.14% $19,187 -$482
Buy to Cover Buy $18,705 $0
21 Buy Buy -3.55% $18,705 -$531
Sell Short $18,174 $0
22 Sell Short Short -2.79% $18,174 -$406
Buy to Cover Buy $17,768 $0
23 Buy Buy 1.87% $17,768 $266
Sell Short $18,034 $0
24 Sell Short Short 13.22% $18,034 $1,907
Buy to Cover Buy $19,941 $0
25 Buy Buy 5.79% $19,941 $924
Sell Short $20,865 $0
26 Sell Short Short -4.51% $20,865 -$753
Buy to Cover Buy $20,112 $0
27 Buy Buy -14.55% $20,112 -$2,341
Sell Short $17,771 $0
28 Sell Short Short 58.52% $17,771 $8,320
Buy to Cover Buy $26,091 $0
29 Buy Buy -14.61% $26,091 -$3,050
Sell Short $23,041 $0
30 Sell Short Short 10.18% $23,041 $1,876
Buy to Cover Buy $24,918 $0
31 Buy Buy -6.06% $24,918 -$1,208
Sell Short $23,710 $0
32 Sell Short Short 20.45% $23,710 $3,879
Buy to Cover Buy $27,589 $0
33 Buy Buy -7.13% $27,589 -$1,574
Sell Short $26,015 $0
34 Sell Short Short 4.29% $26,015 $893
Buy to Cover Buy $26,908 $0
35 Buy Buy 81.40% $26,908 $17,522
Sell Short $44,430 $0
36 Sell Short Short 1.34% $44,430 $476
Buy to Cover Buy $44,907 $0
37 Buy Buy -2.41% $44,907 -$866
Sell Short $44,041 $0
38 Sell Short Short -1.10% $44,041 -$388
Buy to Cover Buy $43,653 $0
39 Buy Buy 11.38% $43,653 $3,974
Sell Short $47,628 $0
40 Sell Short Short 5.44% $47,628 $2,073
Buy to Cover Buy $49,700 $0
41 Buy Buy 14.15% $49,700 $5,626
Sell Short $55,326 $0
42 Sell Short Short 8.60% $55,326 $3,806
Buy to Cover Buy $59,133 $0
43 Buy Buy -6.99% $59,133 -$3,307
Sell Short $55,826 $0
44 Sell Short Short -12.13% $55,826 -$5,417
Buy to Cover Buy $50,409 $0
45 Buy Buy -2.87% $50,409 -$1,157
Sell Short $49,251 $0
46 Sell Short Short 80.24% $49,251 $31,615
Buy to Cover Buy $80,867 $0
47 Buy Buy -8.91% $80,867 -$5,764
Sell Short $75,103 $0
48 Sell Short Short 28.42% $75,103 $17,075
Buy to Cover Buy $92,178 $0
49 Buy Buy 6.99% $92,178 $5,155
Sell Short $97,333 $0
50 Sell Short Short 14.96% $97,333 $11,649
Buy to Cover Buy $108,981 $0
51 Buy Buy -1.21% $108,981 -$1,055
Sell Short $107,926 $0
52 Sell Short Short 23.90% $107,926 $20,636
Buy to Cover Buy $128,562 $0
53 Buy Buy -13.67% $128,562 -$14,060
Sell Short $114,502 $0
54 Sell Short Short 21.18% $114,502 $19,401
Buy to Cover Buy $133,904 $0
55 Buy Buy 1.26% $133,904 $1,350
Sell Short $135,254 $0
56 Sell Short Short -0.72% $135,254 -$779
Buy to Cover Buy $134,474 $0
57 Buy Buy -9.70% $134,474 -$10,435
Sell Short $124,039 $0
58 Sell Short Short 26.45% $124,039 $26,247
Buy to Cover Buy $150,286 $0
59 Buy Buy 6.24% $150,286 $7,502
Sell Short $157,788 $0
60 Sell Short Short -6.45% $157,788 -$8,142
Buy to Cover Buy $149,646 $0
61 Buy Buy 18.81% $149,646 $22,519
Sell Short $172,165 $0
62 Sell Short Short 6.32% $172,165 $8,705
Buy to Cover Buy $180,870 $0
63 Buy Buy -1.83% $180,870 -$2,648
Sell Short $178,222 $0
64 Sell Short Short 5.13% $178,222 $7,314
Buy to Cover Buy $185,536 $0
65 Buy Buy -5.87% $185,536 -$8,713
Sell Short $176,823 $0
66 Sell Short Short -9.17% $176,823 -$12,972
Buy to Cover Buy $163,852 $0
67 Buy Buy -0.39% $163,852 -$511
Sell Short $163,340 $0
68 Sell Short Short 44.81% $163,340 $58,554
Buy to Cover Buy $221,895 $0
69 Buy Buy 2.31% $221,895 $4,101
Sell Short $225,995 $0
70 Sell Short Short 7.24% $225,995 $13,090
Buy to Cover Buy $239,085 $0
71 Buy Buy 37.88% $239,085 $72,452
Sell Short $311,537 $0
72 Sell Short Short 7.05% $311,537 $17,571
Buy to Cover Buy $329,108 $0
73 Buy Buy 5.97% $329,108 $15,718
Sell Short $344,826 $0
74 Sell Short Short 11.50% $344,826 $31,724
Buy to Cover Buy $376,550 $0
75 Buy Buy -9.29% $376,550 -$27,985
Sell Short $348,565 $0
76 Sell Short Short -12.09% $348,565 -$33,713
Buy to Cover Buy $314,852 $0
77 Buy Buy 11.82% $314,852 $29,772
Sell Short $344,624 $0
78 Sell Short Short 36.04% $344,624 $99,362
Buy to Cover Buy $443,986 $0
79 Buy Buy 3.52% $443,986 $12,503
Sell Short $456,489 $0
80 Sell Short Short 46.83% $456,489 $171,019
Buy to Cover Buy $627,508 $0
81 Buy Buy -6.63% $627,508 -$33,283
Sell Short $594,225 $0
82 Sell Short Short 2.11% $594,225 $10,031
Buy to Cover Buy $604,255 $0
83 Buy Buy -3.88% $604,255 -$18,756
Sell Short $585,499 $0
84 Sell Short Short 43.23% $585,499 $202,489
Buy to Cover Buy $787,988 $0
85 Buy Buy -2.91% $787,988 -$18,344
Sell Short $769,644 $0
86 Sell Short Short 50.66% $769,644 $311,921
Buy to Cover Buy $1,081,565 $0
87 Buy Buy 39.47% $1,081,565 $341,515
Sell Short $1,423,080 $0
88 Sell Short Short 12.37% $1,423,080 $140,828
Buy to Cover Buy $1,563,908 $0
89 Buy Buy -3.00% $1,563,908 -$37,534
Sell Short $1,526,374 $0
90 Sell Short Short -6.95% $1,526,374 -$84,866
Buy to Cover Buy $1,441,507 $0
91 Buy Buy -2.46% $1,441,507 -$28,369
Sell Short $1,413,139 $0
92 Sell Short Short -3.60% $1,413,139 -$40,698
Buy to Cover Buy $1,372,440 $0
93 Buy Buy 4.51% $1,372,440 $49,518
Sell Short $1,421,958 $0
94 Sell Short Short -0.76% $1,421,958 -$8,646
Buy to Cover Buy $1,413,312 $0
95 Buy Buy 0.96% $1,413,312 $10,854
Sell Short $1,424,167 $0
96 Sell Short Short 18.12% $1,424,167 $206,447
Buy to Cover Buy $1,630,614 $0
97 Buy Buy -5.10% $1,630,614 -$66,529
Sell Short $1,564,085 $0
98 Sell Short Short 12.72% $1,564,085 $159,161
Buy to Cover Buy $1,723,246 $0
99 Buy Buy 1.47% $1,723,246 $20,265
Sell Short $1,743,511 $0
100 Sell Short Short -8.66% $1,743,511 -$120,790
Buy to Cover Buy $1,622,721 $0
101 Buy Buy 12.60% $1,622,721 $163,570
Sell Short $1,786,291 $0
102 Sell Short Short 8.59% $1,786,291 $122,754
Buy to Cover Buy $1,909,045 $0
103 Buy Buy 1.98% $1,909,045 $30,239
Sell Short $1,939,284 $0
104 Sell Short Short -7.59% $1,939,284 -$117,753
Buy to Cover Buy $1,821,531 $0
105 Buy Buy -6.53% $1,821,531 -$95,157
Sell Short $1,726,374 $0
106 Sell Short Short 1.40% $1,726,374 $19,335
Buy to Cover Buy $1,745,710 $0
107 Buy Buy 9.89% $1,745,710 $138,121
Sell Short $1,883,830 $0
108 Sell Short Short 0.62% $1,883,830 $9,344
Buy to Cover Buy $1,893,174 $0
109 Buy Buy 0.52% $1,893,174 $7,876
Sell Short $1,901,050 $0
110 Sell Short Short -3.85% $1,901,050 -$58,552
Buy to Cover Buy $1,842,497 $0
111 Buy Buy 14.65% $1,842,497 $215,941
Sell Short $2,058,438 $0
112 Sell Short Short 36.86% $2,058,438 $606,992
Buy to Cover Buy $2,665,430 $0
113 Buy Buy -2.97% $2,665,430 -$63,331
Sell Short $2,602,099 $0
114 Sell Short Short 12.25% $2,602,099 $255,006
Buy to Cover Buy $2,857,105 $0
115 Buy Buy 8.81% $2,857,105 $201,369
Sell Short $3,058,474 $0
116 Sell Short Short -1.28% $3,058,474 -$31,319
Buy to Cover Buy $3,027,155 $0
117 Buy Buy 0.04% $3,027,155 $969
Sell Short $3,028,124 $0
118 Sell Short Short 38.99% $3,028,124 $944,532
Buy to Cover Buy $3,972,656 $0
119 Buy Buy 268.40% $3,972,656 ########
Sell Short $12,502,744 $0
120 Sell Short Short 24.84% $12,502,744 ########
Buy to Cover Buy $14,987,289 $0
121 Buy Buy -4.25% $14,987,289 -$509,568
Sell Short $14,477,721 $0
122 Sell Short Short -7.24% $14,477,721 -$838,550
Buy to Cover Buy $13,639,172 $0
123 Buy Buy -2.52% $13,639,172 -$274,966
Sell Short $13,364,206 $0
124 Sell Short Short 10.94% $13,364,206 ########
Buy to Cover Buy $14,533,841 $0
125 Buy Buy -1.87% $14,533,841 -$217,426
Sell Short $14,316,415 $0
126 Sell Short Short 4.86% $14,316,415 $556,622
Buy to Cover Buy $14,873,037 $0
127 Buy Buy 7.38% $14,873,037 $878,104
Sell Short $15,751,141 $0
128 Sell Short Short n/a $15,751,141 #VALUE!
Buy to Cover n/a
