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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. 2012 Year To Date: +21% (Version 6.0) 2012 S&P Year To Date: 11%
BladeTrader 6.0 Performance Against S&P: +10% 2011: +7% 2010: +42% 2009: +49% 2008: +5% 2007: +20%
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| Market Action | |
Was there a breakdown this last friday with the non-farm payrolls report? Coming in well under expectations, the market sold off, but only 1%. It was a good quarter for all investors long the market and now many are asking the same question, can the market go higher or will we have another dismal summer?
The Commitment of Traders broke down a few weeks ago, but this is such an early indicator it may take months for it to setup. The electronic trading of the index is 100% long, with a COT long, but the market has been breaking down for a little over a week now.
Our target of 1350 for the S&P seemed to be a little low on the expectations as it marched to nearly 1420, but with the recent pullback we are testing 1370 at the moment.
Let the market tell you when to get out, but we have been neutral since 3/27 looking to get back in when the time is right.
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| Commentary
Good start to 2012 | |
Our unleveraged strategy is performing above the market by 10% but our double leveral strategy is a whopping 40% for the year above the S&P by 30%. In 2010 we were single levered, in 2011 we were single levered, but the system is designed to be double levered since this would match the risk profile for a 100% stock portfolio.
The system is performing great, no issues, though we are still trying to get the options component going. last year was tough on the options testing, but we will get it right and make this an important factor, but for now, options will just have to wait.
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| 2012
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 I made some more presentations. Unfortunately its incredible difficult to convince individuals that an algorithmic fund needs to be a part (dedicated) of an individual's retirement plan. There aren't many in the United States that can design and develop these systems yet alone an average investor understanding it. Regulations and the potential for litigation keep everyone investing in simple things like bond funds, and this seems solely related to the 2008 meltdown and all the lawsuits around bernie madoff.
Those institutions that have capital to deploy prefer the sure thing with the least amount of risk. It is very hard to demonstrate that algorithmic strategies have actualy less risk than the stock market, but the philosophy is still the same "The market has an annualized return of 8%" which I hope everyone realizes that this is simply not true but its difficult to clarify.
On another note, we are going to have to make some changes to how we are offering this solution. I have been working diligently to come up with some sort of solution to be compliant with all our affiliations but a so called "firewall" needs to be put into place. In other words, we need to find someone to operate the strategies.
The good news here is that we are up big against the S&P and we have 2 years of real data and well into our 3rd.
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Sincerely,
Edward Zaremba
Trizen Systems, Inc.
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| | | BladeTrader Version 6.0 | | Version 6.0 has been releasted |
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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. ALL INVESTMENT RECOMMENDATIONS ARE BEING MADE REGARDLESS OF PERSONAL PORTFOLIO CONSIDERATIONS. ALL RECOMMENDATIONS ARE DERIVED FROM A SYSTEM OF TRADING VIA AUTOMATION AND OPERATIONAL RULES AND NO PREFERENCE IS GIVEN TO ANY INDIVIDUAL'S PORTFOLIO REQUIREMENTS.
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