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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. Bi-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.
Year to Date (YTD) Performance vs. the S&P 500:
Return on Initial Capital: +29.70% We are currently above the S&P index by 23.60% |
| Market Action
Bi-Weekly Profit (P/L): +480 | |
It was a difficult two weeks as the market literally almost where it began. Not much of a trend as the S&P struggles to move to 1200, even though earnings are well above expectations. Its quite possible that expectations were so low that anything less than spectacular is considered a disappointment. No change in our direction of being Long but resistance at this level is concerning.
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| 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. Hedgers maintain large portfolio positions and will hedge their positions using the S&P (so they can protect against falling markets). Professionals speculate and tend to be on the right side of the market opposite the hedgers. In most cases the Small trader (Green) is a contrarian indicator.
Analysis: Lets review the prior COT analysis:
"The Electronic COT continues to show a "short" position and the market continues to climb higher. In contradiction, the pit traded contract is showing a raging bull market. In general, there is much confusion on what to believe; however, you have to ride the existing market until she bucks you. Non-farm payrolls came in below expectations (95,000 jobs lost) and housing is in an all out disaster. A good read on the housing market is Michael Lewis' book "The Big Short" which describes in all its glory what happened. The electronic COT is showing that the hedgers (red) and the professional traders (blue) are starting to get in sync with the pit traded contract by becomes less "short" in their positioning (hedgers going short and professionals going long) but this could take some time as the electronic professionals simply appears to move their stop losses higher as the market moved against them." Not much has changed since our last review of the COT, the professional electronic trader has remained short, but the pit traded contract of the S&P is showing a bullish pattern--very difficult to interpret. Overall, no change to our trading system of being long, though 1080 is looking extermely difficul to get through at the moment.
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| Paul Charles Zaremba
Born 10-18-2010 |  Its been a long week, but Paul Charles Zaremba was born this past Monday and is doing well. The trading system is going well and I am getting excited about starting up a new year with new contracts. These will likely include the current S&P, Treasury futures, and the Euro/USD Forex. I will keep everyone posted on the algorithms for each of these instruments. Paul Charles Zaremba was named after my grandfather and his brother Paul. |
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Sincerely,
Edward Zaremba
Trizen Systems, Inc.
Commodity Trading Advisor
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| | BladeTrader Version 3.6 | | Version 3.6 and 3.3 have been released. We will have four accounts for each side and version and seperate percentages. |
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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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