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Hello and Welcome,
Welcome to the new Trizen Systems newsletter. This will be the new format for discussing our algorithmic trading systems and other information. Weekly updates will include Actual Profits/Losses, Commitment of Traders, Articles and Actual Trading screen shots. Pass this along to anyone that you feel would like to understand more about the financial markets, derivatives, and how to trade them successfully. |
| Unprecedented Market Action
Daily Profit (P/L): +$3000 |  There has been a lot of speculation about Thursday's action but little in the way of explaining it fully. Some suggest it was human error, yet others insist it was computer algorithms. Regardless, the exchanges themselves have made very clear that when they pause trading, computer systems will go elsewhere to find a price. Our Version 3.3 algorithm held up quite well during this time and we profited +$3,000 over the two day period using 1 contract. Version 3.6 of the Short only Algorithm shows a slightly better gain and will be introduced after it has been completely modeled against prior years. |
| Commitment of Traders
Bulls-n-Bears | | The COT, or Commitment of Traders, represents a government report that collects all the open positions for all traders in the futures market. It breaks it out into Hedgers, Professionals, and Small Traders. This week's COT for the S&P continues to show a net short position for Professional traders (Blue) while Hedgers seem to be neutral (Red). In most cases the Small trader (Green) is a contrarian indicator. Continuing a defensive position in your portfolio would be best at this point.
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| Algorithmic Trading
Getting a Bad Rap |  Algorithmic trading has many forms and offers traders a chance to automate routine tasks. High Frequency Trading or HFT has however been getting the most headlines as of late and especially after the 5/6/2010 DOW 1000 drop. You might be wondering what HFT is how it affects you and your portfolio. For the most part its a benefit to all traders and portfolios since most financial firms either use it to auto trade mundane tasks (auto hedge for example) or to auto fill orders if a firm is acting as a liquidity provider. In general these are all good for the markets; however, the notion that algorithmic trading takes from those who don't trade this way has some merit because there is such a high barrier to entry for all but the most well capitalized firms and individuals. In general, if you want to trade HFT, then let a professional firm that specializes in this do it for you. If you feel you must design an HFT system, then you should be an expert on low latency programming, have direct access to exchanges, co-locate your hardware at the exchange and have enough money to handle the computing power to do it. For most of us this simply isn't possible and as such we should leave it to the professionals who know where this type of trading is most useful and simply concentrate on low frequency trading (or let a professional manage it). At Trizen Sysems, we specialize in medium frequency trading which incorporates elements from HFT and fundamental strategies. This type of trading reduces commission charges, sliippage expenses (getting a bad price), and offers both long and short strategies and we only recommend the things we actually trade ourselves. Why trust anyone who doesn't trade what they recommend? |
| Actual Trades for 5/6/2010
The Market Takes a Beating | | We only recommend what we actually trade. Here is a screen shot of our automated system in Action and the actual trades. On arguably one of the worst days in the stock market's history the system held its own and managed to profit $1200 with a single contract.
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Sincerely,
Edward Zaremba
Trizen Systems, Inc.
Commodity Trading Advisor
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| | BladeTrader Version 3.6 | | Our Short Only version should be released shortly after completing the model results This will be an update to our current version 3.3 which is actively trading now. |
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U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN. |
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