2012 Year To Date: +13.88% (Version 6.0)

2012 S&P Year To Date: +8.24%
BladeTrader 6.0 Performance Against S&P: +5.64%

2011: +7%

2010: +42%

2009: +49%

2008: +5%

2007: +20%

Other than a few days here and there the market has been on a straight line upward.  Everyone is again afraid to miss out on the rally.  Those sitting on the sidelines are jumping on pull backs.  Those who are waiting for a bigger pull back will jump in at 1300.  This will be a real tough market to sell as everyone is all in almost. 

This is very concerning.  Everything is firing on all cylinders, and companies are taking in monster profits.  The market is over 8% for the year in the secon month, at this rate the market should return nearly 50% again.  At any rate, things seem to be improving in all areas, but everyone is waiting for the music to stop and when it does, there will be a mad rush to not be the last one standing without a chair. 

Let the market tell you when to get out, but there are a lot of folks that probably missed the rally since November and are buying all dips, no matter how small...what happens when everyone is all in?  Will sell in may and go away haunt us yet again?  Be on the look out for a breakdown, but right now, there isn't much stopping this train.

At this point we are simply doing as good as any market, and this is the way the system was designed.  Its very, very hard to beat a bull market, because indexes don't have commissions to pay and don't short.  The system was designed to match the market in good times and either conserve capital in bad or make some.

Our current percentage of nearly 14% is very good; however, this is not fully levered, and as such we are at 28% but we are taking a conservative effort.  The same was true for 2010, we did 42% but we weren't fully levered which would have had results in the unbelievable category of 84%.  In other words, the results here will typically be less than the maximum one can take out of the market due to risk tolerance. 

Most individuals love making 84% but can you handle a 42% dip potentially?  The system is also designed to be 2:1 with respect to profit:risk and at worst 1:1.  Meaning, if you want to make 10% you will have to risk 5% over the course of the last 10 years.  In general most individuals don't like to short, and this is where you can really pad your gains however, this can be a little rough on the nerves as the volatility jumps and is always 1:1 over a given period and at times can be 1:2 (meaning you're risking $2 for every dollar) and this is where most individuals break down and close positions. 

Risk is the one thing you need to evaluate before all other decisions.  If you're only looking at returns, but don't take into consideration drawdown, you may be headed for trouble.  For instance, some websites claim a 50% return but fail to state that there will be a 100% drawdown potentially.  What does this mean, it means that your account actually went to zero and you had to close out and subsequently could not have made the gains. Our risk is 1:1 on a conservative basis:  If you want to make 8% you will risk 8% at any given time.   

We have shown time and time again, the market does not return 8% over the long haul, primarily because we live in 20 year increments and most of our investing occurs from age 35-55.  If you break down the market with this notion, then the returns are wildly different depending on when you started investing.  What are the risk characteristics for any 20 year period?  What are the risk characteristics for a 100 year period.  We now know, twice in the last 100 years, you can lose 50% of your nest egg while you attempt to earn that 8%.  The big difference between the market and our system is that we can short, we can lever up, and we can be on the sidelines. This is how you beat the market while managing your risk.

  I got everything ready, debugged, working flawlessly.  The algorithm is performing better than I expected from a technical point of view and exactly what I expected from a trading percentage.  Every body makes money in a bull market, and we're no different in that category, its the bad times that I built the system for.  No one cares if you're up 8% when the rest of the world is doing 8%, but everyone sure is quiet during a bear market.  I don't talk much in a bear market, I silently pad the accounts, and this is the way I look at it: "Just padding the accounts for when the market moves against me."  In other words, the easy money is now, everyone is making money.  The hard money was the summer of 2008, 2010, 2011, and probably 2012 just to name a few.

Overall, if you called me up today and wanted the system, the connectivity to our servers is there over the web, the software is there for you to test and backtest, the accounts are ready to go.  It took a long, long time to get everything to this point, and with that I am happy to say:  We're open for business.  For those that have been with us as shareholders, the special offer still stands:  No fee if we don't beat the S&P! 

And again, this is your account, you own it, I just turn on the system for you, or you can turn it on yourself.  You can cancel anytime, close out anytime, add more funds anytime, monitor in real time or at the end of the day.  I am not tailoring the system, everyone gets the same entry points and exit points (or very close depending on the market liquidity).  You can choose to only buy or "go long" or you can add shorting capabilities (for those that are a little more sophisticated).  You can trade an IRA, or a regular futures account.  Its your call, I just want to open the doors to what Wall Street does in commodities to anyone that wants to put a portion of their investments in algorithmic trading.

Overall, I put this together because its an unfair world on Wall Street.  I did it for the shareholders, and my friends,  but most of all I did it for my family.  I look forward to hearing from you. By the way, I can finally focus on the website this next month and a new employee or two. Our web presence needs to be a little more beefy.