Turn, Turn, Turn
Since making some minor trade filter adjustments to our LEVEL-V trading protocols in early May, we decided to allocate part of our morning tasks to a spate of back testing to see just how this proprietary short-term trading methodology was performing since making the adjustments. To our delight, the results of our findings have been extraordinary.
We have listed the rather impressive trade stats directly on the chart below. Although the system performed well prior, it clearly shows marked performance improvement following our adjustments.
Futures traders faired the best with a $20,090 gross profit per single full size futures contract traded throughout the period. While short-term (NON-LEVERED) ETF traders captured a 27.8% gross profit return from the Dow's close of 7224 on March 15 as the index itself has only advanced 20.8% from this period.
Granted, transaction costs and the like for (NON-LEVERED) ETF's would have likely proved it more prudent just to buy and hold from 7224 however those using LEVERED ETF's came out far ahead of the underlying performance of the index itself.
To everything - Turn, Turn, Turn... There is a reason - Turn, Turn, Turn...
Just as there is a season for everything under the sun, there is also a natural season of cyclicality for various trading strategies. Although medium-term counter-trend strategies are clearly frustrated with performance since the one-way rally commenced from the March low, our short-term counter-trend tactics at LEVEL-V have performed phenomenally well.
Trade the Supercycle
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