Acting in my own best interests!

I have been away on holiday the last 10 days and I am pleased to report that New Zealand is an amazing place and that the test are all still performing well during my absence.

Obviously, I haven’t been able to monitor the open draw down but it seems that markets have been reasonably quiet of late.

Correlation Aggressive has grown a modest $1,605 or 3% in two weeks however it has halved the open loss and it is now only $4.8k.

Correlation Triangle has grown $8,317 or 11.8% in two weeks but has increased it’s open loss from $4k to $7k during this time. It is still well within the comfort zone and I am really look for some wild market swings to see how this strategy behaves.

Zig Zag has also grown modestly, only $1,009 or 1.4% in two weeks. I have seen the open loss $19k in the last day or so but at the times I pulled the report, it is sitting at $11.4k. I suspect it could have got as high as $25k open loss based on the price movements over the last few days. This is in the threshold of my comfort zone but realistically if I were to go live, I would dial down the leverage anyway.

Another week has passed and the systems were all performing well until my demo decided to expire and crash the applications. I have requested a long dated demo this time. As a result, equity curves do not have a lot of history, but are positive over last week. The exception being correlation aggressive has increased it’s open loss.

Correlation Aggressive (with 1/3rd less equity), has a worrying $10k open loss. Mostly caused by the crash. I will let it run with another week to see if it will pulls it back in, otherwise I will start a new test.

Return this week: +2.5%

Open Loss: $10.5k, up from $5.7k last week.

Correlation Triangle has some issues when I restarted the test. For some reason it restarted with USD/JPY pair in the profile. It seems to have done little harm to the validity of the test.

The big spike in the equity curve is due to movements of the markets while the system crashed. When it restarted, it realised it had profits and closed the open winning positions immediately.

Return this week: 12.3%

Open Loss: $4.8k, down from $8.9k last week (good news!)

Zig Zag is continuing on it’s merry way.

Return this week: 8.3%

Open Loss: $985, up from $700 last week.

OK, in light of the recent blow up of the correlation aggressive test I have commenced some new test. To summarise, here is what I am testing at the moment:

• Correlation Aggressive (New, with 1/3rd the previous equity)
• Correlation Triangle (New)
• Zig Zag (been running for about 1 month now)

The correlation triangle has been the stand out this week. After starting it on Monday morning when the markets opened, it has returned a whopping 25.3%.

It has a current unrealised loss of $9k, and it will be very interesting to see how it behaves in wilder markets. Details below:

Correlation Aggressive is behaving consistently with the previous test, just smaller profits as we have reduced the lot size. Since restarting it on Monday, it

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In stark contrast to my last post, the Correlation Aggressive Both ways system managed to complete blow up. You would have to use 1/3rd to recommended equity to make it viable…

Everything keeps working really well…until it doesn’t!

On the other hand, ziz zag is performing well thanks to the volatility in the GBP… up 30% on equity so far and performing well with no major unrealised losses.

Correlation Aggressive has met our success criteria (but only just!). The balance is now at $115k, from a starting balance of $50 from approx the first week in January. The reason I say ‘Only just’, is that technically it crossed the $100k mark with only a $40k open loss (under the $50k threshold we set in the success criteria)….Shortly after it escalated to a $89k open loss……

The big bump  in the chart below is not representative of the unrealised loss but gets close. The good news is we are back on track and the systems are running normally.

My advice, should anyone go live would be to drop your position size to 30% of what I am trading on the demo, let it double the account in approx 5 months, then increase it.

The full report is available here.

I am continuing with the test for the foreseeable future so will continue to provide updates.

Test 2

ZigZag is also progressing well… It’s just a little slower. Currently up ~20% since starting, and everything is in check. Full details here.