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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.
Feb 1, 2010 to Date (start) Performance vs. the S&P 500:
Return on Initial Capital: +37.10% We are currently above the S&P index by 22.49% |
| Market Action
Bi-Weekly Profit (P/L): -$(220) | |
An extremely bouncy two weeks. The market sold off considerably but rebounded several times and eventually tested 1300. It was a difficult two weeks; however, we managed to remain largely unscathed throughout the volatile two weeks, especially on Friday when the market sold off from hits highs over 30 points (a significant move for one day). The strategy has issued a hedging signal and as such we will be in protection mode shortly; however, there should be some advances throughout this week and as such the hedging strategy will be applied on Tuesday (if it is still firing).
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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:
"An amazing turn here in the COT as hedgers in the electronic contract turn south and professionals turn North. The small investor is short (typically wrong). This is a classic pattern for a bullish tendency; however, this past year has been one of divergence. In prior COT's this is a bullish pattern but if the hedger AND the professional go short, look out below. For now though, most signals are higher though the Stock Trader's almanac does show some weakness after earnings season."
Weakness continued throughout the last two weeks as the market is trying to find idrection. Hedgers are now net LONG (RED) with professionals net LONG (BLUE) with small traders net SHORT (GREEN). We will know more tuesday, but this market is struggling to find direction. Look for another attempt at 1300 as we also may test some recent lows along the way. Volatility can be your friend here, selling after strong rallies and buying on dips.
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| Capitaliziation
Getting additional capital into the fund | |
 I will be detailing this in an extra contact message this next weekend, but I will be personally adding into the system everything I have. I look to have the system with a capital base upwards of $150,000 if not more. We will start on March 1 2011, officially 1 year after the system has been live (we started on Febrary 1 with a month of testing, but March 1 represents when the system was released). I believe in this system enough to put my money where my mouth is.
If we can earn 30% on this over the next 10 years there will be over 2,000,000 with no additional capital added. However, in 10 years we could have 20,000,000 easily if we can capitalize. I look forward to discussing 401(k), IRA, and other items vs. this algorithm in detail next week. |
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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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