Our Trading Philosophy:
Our philosophy is simple. Don’t risk a dime trading in the markets without a proven, reliable expectancy. The private retail trading space is filled with products and systems boasting 80% or higher win rates and attractive annualized returns. However, a trading system or method must be mechanically repeatable over and over and over again in order to rely on or duplicate claimed results. Sadly, after spending nearly 6 figures on countless products, education, trade rooms and systems including capital loss in the market, we could not find anyone who could provide quantitative backup substantiating reliable positive expectancy of their trading systems or methodology. This gap led to the development of TheAutomatedPitTrader!
Our philosophy does not permit any room for the elusive “Art” dimension of trading so many use as a scapegoat to explain failed trading methods. Any ambiguous element in trading will never support attainment of accurate expectancy. A reliable system must be robust to trade through any market condition and produce a positive outcome. Furthermore, many thousands if not tens of thousands of trades must be recorded in the sample for determining an acceptable expectancy; i.e. if a particular trading setup or methodology shows a 75% win rate and a positive profit factor, it is only reliable if it resulted after many thousands of trades over at least one full trading year. The higher the quantity of trades and the longer the time span the more reliable the resultant expectancy. A handful of trades or even a couple of hundred trades is not sufficient to establish expectancy.
This leads us to our system development methodology and expectancy reliability.
Methodology & Expectancy
Overview our system methodology and gauge the reliability of our quantitative statistical expectancy.
© 2015 OptimalTraderLLC
RISK DISCLOSURE:
Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
HYPOTHETICAL PERFORMANCE DISCLAIMER:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.