Both aggressive models continue to outperform SPY (+4.63%) and IWM (+4.40%).
20% of Equity per Trade
Net % Profit: 7.33%
Annualized: 49.73%
Average Trade: 0.92%
Winning %: 60.00%
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10% of Equity per Trade
Net % Profit: 1.71%
Annualized: 10.17%
Average Trade: 0.28%
Winning %: 63.38%
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ATR Position Sizing
Net % Profit: 6.03%
Annualized: 39.64%
Average Trade: 0.37%
Winning %: 64.15%
.01/share was included for commissions.
A free PDS trial is available.
Just curious, but the advertised 1.59% (as of 03.08.11) gain per trade is more than marginally higher than the aforementioned models. Where does the discrepancy arise from? Not trying to be inflammatory, just curious. As a PPT member, I’m interested in expanding the services through which i bank coin.
The results posted include commissions which account for somewhere between 0.15 – 0.30% off the average trade whereas the widget is just raw results of ALL trades without commissions.
The primary discrepancy stems from the fact that one cannot take all the picks and therefore we must have some method of ranking pics so results are generalizable. Thus, there is a ranking mechanism for each night’s picks. The system takes the top ranked picks, and these results are what you see in the models. Some of the lower ranked picks that were not traded by the system have out-performed the higher ranked picks. This is normal and I think unavoidable.
There are other factors too, for example almost every open long the system is holding is losing, due to the recent pullback. If the system has only made 25 trades all year, and now 5 of them are in the red, it will skew the average trade to the lower end, while if we look at ALL trades, currently at 276, the fact that many of the recently selected ones are in the red has very little impact on the average trade.
I hope this is clear. Feel free to ask for clarification.
Appreciate your response, and it makes perfect sense. Thanks again.
Wood – since 2/11/11, I’ve closed out 9 Powerdip trades – 7 winners, 2 losers and I’m up 6%+ precommissions. Have 3 open trades in place – use the 20% equity model. I do deviate a bit with the entries and with some of the early trades, the sizing was too small and exit too early.
For those wondering why my return is less than the system YTD – my trades are only since 2/11…
Thank you!
(laughter) fuck that hackling douchebag, Wood. I saw that this morning.