Starting on December 2016 I funded a futures account with $25,451 of my own money to trade systems which are highlighted on System Trader Success. I started out with a small account to demonstrate a realistic scenario of a new retail trader just starting to trade. I intend to track the results here, on this page.
Our trading systems are in drawdown as of July 2017. We really started out the year strong thus, a drawdown period is not surprising or unusual. Looking at the example trades you will find a large failed short position from July. Another short position, which remains opened, as taken in August and that trades is currently losing money as well.
Ath this point this portfolio has generated $10,188 in net profit.
This includes deductions for slippage, commissions, platform fees and remote server hosing.
I plan on making brokerage statements available. I'll be adding those soon!
Being a system developer and trade also means you're going to have costs beyond commissions and fees imposed during trade execution. You're going to need a trading platform and historical market data to develop and test your trading ideas. You may also wish to utilize additional tools and rent server space so you don't have to run your live trading from your home computer.
Below is a table which contains the monthly costs for the data feed, trading platform (which includes a subscription to a portfolio testing feature) and the cost of hosting my trading platform on a remote sever.
You an see the fees add up to $378 per month. This represents friction against your trading performance. The last column is what I call the Effective Return which is the portfolio performance minus all these expenses.
The monthly fee of $378 may seem a bit high at first. I have many data feeds for testing various markets. I lease a software package for portfolio level backtesting and I rent server space. But none of that is out of the ordinary. There will always be costs to live trading and in our case, the portfolio will have to clear $378 per month on average just to cover costs. The good news is, as the trading account grows larger, these feeds don't scale up in proportion to your account. Thus, the impact of these fees diminishes.
Nonetheless, this should give you a good idea on what to expect in regards to the cost of running your automated trading portfolio. Of course this does not include all the other costs you may have expensed for classes, trading system and other educational material.
Two automated trading systems were selected to start trading. They were picked because of the small capital size required to trade. Unfortunately they both happen to trade the E-mini S&P. However, both do it in very different ways resulting a a fair amount of diversification. The two systems are Aurora Pro and E-mini S&P Intermarket System.
Combining these system into one account we are actually trading three different setups on two different time frames. My hope is, as the account grows other systems will be evaluated and added to the portfolio.
Aurora Pro is actually two trading systems in one. The first setup is a mean reversion setup based upon RSI which holds trades between 2-4 days. This setup operates on a daily chart and trades are managed on a 5-minute chart. The second setup is an intra-day breakout which closes all trades at the close of the daily session. This setup operates on a 5-minute chart. Both of these setups are long only. Together these setups provide two different trading methods which exploit two different market conditions within the E-mini.
The E-mini S&P Intermarket System will hold trades for days or weeks and operates using intermarket analysis. It is, a type of arbitrage system which will take both long and short positions. Thus, this trading methodology provides further diversification. This system operates exclusively on the a daily chart.
The results on this page are compiled by me, Jeff Swanson, based upon my broker statements. I also plan on making brokerage statements available. Trades are also tracked by SeedFunder which is a service that connects to your broker account to monitor and track live trades.
Because the account is so new FundSeeder does not public display the results. We need to be active for more than 180 days and have an account size above $50,000. Once these two conditions are met, you can view our live results as tracked by FundSeeter.
As soon as the new monthly results are updated every attempt will be made to update this page. Expect to see new results by the 5th of the month.
The account started with about $25,451 on December 1, 2016.
Yes! I will be making these available soon. Please check back.