A client emailed me some questions about the changes I’ve made to some of the systems and their recent results.\u00a0 I thought the email had some good questions (& answers)\u00a0and might be beneficial to share them.\u00a0 The email was from last Friday (2\/25).\u00a0 Here it is:<\/p>\n
Bobcat and Cougar were improved last fall, and performance still suffered in Jan. What happened there?<\/strong><\/p>\n > January was just a choppy month intraday.\u00a0 I doubt many (if any) trend type daytrading systems for the stock indices did well that month.\u00a0 Bobcat didn’t do too bad, especially considering how choppy the market was.<\/p>\n Jaguar and Leopard were improved a couple of weeks ago. Does that account for the recent good performance?<\/strong><\/p>\n > Actually no.\u00a0 The update made for Jaguar hasn’t affected any trades so far (it only comes into play in very low volatility).\u00a0 One of the updates for Leopard (for very low volatility) hasn’t affected any trades so far, and the addition I made to it (increase number of trades) has had almost no effect so far \u2013 but it’s only been a couple weeks.\u00a0 The recent good performance is due to increased volatility (increased movement intraday).<\/p>\n As I look back over the charts of your systems, 2008\u2019s major volatility accounted for a lot of the gains. Otherwise we\u2019ve had short bursts of profit with long flat spots. Do you think the improvements will produce a steadier uptrending chart?<\/strong><\/p>\n >\u00a0Because of 2008’s large volatility, I now test all systems with 2008 trades removed.\u00a0 I do run the trades for 2008 during a final check just to make sure it does okay.\u00a0 I’ve been thinking about doing a blog post showing performance results with 2008 trades removed.\u00a0 Although profits are typically cut in half, the equity curve is actually smoother.\u00a0 And yes, I do think the improvements will produce a steadier uptrending equity curve (that’s certainly the goal at least!).<\/p>\n Anything else you can comment on?<\/strong><\/p>\n > The main thing that negatively impacts the trading results for these systems is a quiet market.\u00a0 That is what happened in 2009 and in January this year.\u00a0 In 2009 I made an improvement to the systems I had then (and when I created Lion II) and used what I learned in developing the newer systems.\u00a0 After the poor results the first half of January, I analyzed again those quiet periods and made adjustments to help protect us when we have quiet markets again.\u00a0 Of course, only the future will tell if my adjustments made an improvement or not.<\/p>\n It is possible the markets could get quiet again\u2026.if they do then my systems will probably flat-line and\/or enter a prolonged drawdown.\u00a0 That is just the nature of the game \u2013 you never know when a good trend day like today [2\/25]\u00a0will come along, so you just have to trade them all and ride out the choppy times (which is a majority of the time unfortunately!).\u00a0 For example, 2011 got off to a very bad start, yet Lion II and Tiger are making new all-time equity highs already (and Bobcat II is very close).<\/p>\n Hope all that info helps!<\/p>\n gary<\/p>\n","protected":false},"excerpt":{"rendered":" A client emailed me some questions about the changes I’ve made to some of the systems and their recent results.\u00a0 I thought the email had some good questions (& answers)\u00a0and might be beneficial to share them.\u00a0 The email was from last Friday (2\/25).\u00a0 Here it is: Bobcat and Cougar were improved last fall, and performance […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sfsi_plus_gutenberg_text_before_share":"","sfsi_plus_gutenberg_show_text_before_share":"","sfsi_plus_gutenberg_icon_type":"","sfsi_plus_gutenberg_icon_alignemt":"","sfsi_plus_gutenburg_max_per_row":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/posts\/1446"}],"collection":[{"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/comments?post=1446"}],"version-history":[{"count":10,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/posts\/1446\/revisions"}],"predecessor-version":[{"id":1456,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/posts\/1446\/revisions\/1456"}],"wp:attachment":[{"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/media?parent=1446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/categories?post=1446"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/trendfindertrading.com\/blog\/wp-json\/wp\/v2\/tags?post=1446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}