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Additional information about the system TERMINATOR_FW20.
Transactional system TERMINATOR_FW20 is a set of objective rules that specify precisely, relying on stock exchange rates and the amount of capital, the parameters of opening orders, the moment of transaction and the number of contracts one should buy or sell at a particular point of time, i.e.:
- the moment of opening positions
- the volume of opening positions
- the moment of closing of loss-making positions
- the moment of closing of profit-making positions
Transactional system TERMINATOR_FW20 is an investment strategy based on idea to follow a trend and to exclude emotions from the investment process through a consistent implementation of all recommendations of the system. Following the instructions leaves no place for arbitrariness: every order opening results directly from the rules of the transactional system TERMINATOR_FW20.
The signals of the system will be generated on account of the continuation chart. Taken into account in the chart will be the rates in those series of contracts which achieve maximum sales volume.
The statistical indicators relevant for the transactional system TERMINATOR_FW20 are as follows (the period from 02.06.2008 to 10.06.2009) assuming the commission 1 point and 8.000 PLN deposit on the contract (which stands for 33% of the initial contract value) without increasing the volume of the position (the volume of a position 1 contract):
- the current rate or return 73,75% (590 pkt. na kontrakt)
- the largest temporary drawdown calculated for a closing position 25% (200 points per contract), 22.07.2009 - 06.10.2009
- number of transactions (calculated as opening and closing of a position) 33
- accuracy of the system (i.e. the percentage of profitable transactions to all transactions) 51,5%.
- the largest profitable transaction 210 points.
- the biggest loss on a transaction 106 points.
- the average duration of a profitable transaction – 10 sessions
- the average duration of a loss-making transaction – 4 sessions
- the relative proportion of gains to losses (i.e. the ratio of an average profit to an average loss on one transaction) 1,75
- the maximum number of consecutive profit-making transactions 3.
- the maximum number of consecutive loss-making transactions3.
The formula on which the transactional system TERMINATOR_FW20 is based, as well as the high rates of return generated by the system in the past, do not guarantee in any way positive investment results in the future. The statistical data of the system presented above reflect real stock exchange transactions. One should bear in mind, however, that it is not always possible to make transactions exactly in conformity with the instructions of the system, especially due to price slippages resulting from insufficient fluidity of the market, or because of other unrelated reasons.
There is no method that can guarantee making only profitable transactions. Loss and gain are immanent parts of the investment process. The more profits we want to reap the biggest the risk we must take. It is impossible to gain high rates of return without running the risks of incurring losses, because the profit rate is inextricably linked to capital drawdown, i.e. a temporary loss calculated from the maximum value of the portfolio.
In the case of the transactional system TERMINATOR_FW20 the largest temporary drawdown calculated from the maximum value of the portfolio amounted to 25% for the last year, while is was 32,34% for the last 5 years, assuming a deposit of 33% on the contract value. It can be concluded, therefore, that the drawdown by about 1/3 (32,24%) is an important risk factor related to the use of the transactional system TERMINATOR_FW20. By accepting such risk and the above stated assumptions the system generated an average of 100% of the rates of return per annum over the past 10 years.
