As we are in the middle of earnings season for most stocks, I thought it appropriate that we report our own results for Q2 of 2009.
We have been tracking the profits and losses of MarketClub's "Trade Triangle" technology for the past 8 quarters for corn, wheat, soybeans, crude oil, gold and the dollar index.
We started this hypothetical portfolio with $50,000, which is approximately twice the margin required to trade the above markets. The reason behind that is that we de-leverage every futures markets and this allowed us to continue to take signals with little or no pressure. The other key for our success is that we are diversified into six markets. Some may argue that the grain markets do not provide true diversification, but I would not argue with that point.
See Q2 results on next page.
For the quarter we had a gain of $3,827.50. This is before any kind of slippage or commissions were charged. Over the 24 months that we have tracked these markets we have shown a cumulative gain of $313,918. This represents gains of around 300% per year. I do not think that these gains are sustainable or even possible in the future. One only has to look at the enormous profits that were made in crude oil to see how this one market may have distorted the picture.
That being said, if you're making $3,827.50 on $50,000 investment you're still doing very well. This equates to a return of over 30% a year. I think most traders and investors would be very happy to see that type of return.
We did nothing more than follow MarketClub's "Trade Triangles" using the specified rules for each market. During the course of the past two years, we have only had one losing quarter and that represented a loss of around 5% of $50,000 investment. So with seven winning quarters and one losing quarter during the most volatile markets in history, you can see that we're very proud of these results.
Trading in the markets is not for everyone and it should not be assumed that these results can be replicated in the future.
We recommend that you watch our educational trading videos that will show you the "Trade Triangles" in action. As always you can call our offices if you need further clarification or help using this methodology.
Learn more about MarketClub here.
All the best in every success in the future.
20 thoughts on “Q2 results for MarketClub's "Trade Triangle" Technology”
as a potential subscriber , would appreciate an explanation of triangle trading methodology as it relates to etfs
Thank you for inquiring about the Trade Triangles. Below you will find our trading strategy for the ETF's using MarketClub and the Trade Triangles.
Monthly Triangles determine trend and possible entry points.
Weekly Triangles determine timing: exits, entries and re-entries.
The last triangle issued on the monthly chart should always be used to identify the overall trend. You can also use the monthly triangle as a potential entry point if you can get into the market within the last 3 trading days of the signal. Then you are to look at the weekly triangles for possible exit and re-entry points, or entry points if your monthly is in a steady trend.
Key Rule: always trade with the trend. Make sure your weekly and monthly triangles correspond in direction.
Head of Technical Support
MarketClub and INO.com
Thanks for your feedback.
We will be issuing a new update for our six futures portfolio tomorrow. It will be available on Tuesday morning after 1:30 AM Eastern Standard Time.
All the best,
Your portfolio results above with the six futures contracts could you ever list this portfolio on the basis of etfs that cover these markets and wondering what the results would show on a $50000 ACCOUNT. Sincerely, Robert Frank.
The deleveraging process is actually very simple. Let's say you're trading crude oil for example and the margin is $7,500. To deleverage you'd simply put up double the margin or $15,000 in this case.
Most beginning traders tend to get burned through the use of leverage.
But following our trade triangles even if you're wrong once or twice you are still are in the game using a deleveraged plan. If you're leveraged to the hilt and you have one or two bad trades then you're basically out of the game.
I hope this answers your question and thank you for your feedback.
All the best,
I was wondering could you explain how you go about the deleveraging you describe above or is there a particular method / rule that you have come across over the years that proves useful as aguide ?
Any help would be greatly appreciated !
I have been using MC since last August. After an initial period of understanding how the signals work and after I backtested the way it suits other things that I use I started using MC triangles this year.
Currently I trade 14 currency pairs, 4 equity indices, 12 commodities and 6 bond contracts. It works for everything.
The results published are very similar to the ones that I have been getting. Money management remains key though (position size and stop levels). My max margin utilisation is around 20% depending on the exchange rate. Returns since I went live in April is 28.4%.
This is a great tool!
I'm trying to determine which trading platform is the best to use for beginners with Some trading experinace?
I really like the trade triangles it help me follow the market a little better. Mr Adam is a excellent teacher of the market but you must pay close attention to what he is saying or you will miss the move.
These are very impressive results, and I commend you on your admonition regarding the extraordinary gains made from the bull market in oil. I would like to point out that there was also a bull market in nearly all commodities during most of this period, so it would be best to compare these results against a commodity index, adjusted for the amount of leverage used.
How much leverage was used, by the way? I would hate for people to follow your advice and lose all their money because they don't realize that your "de-leveraged" portfolio was actually using 25X leverage instead of 50X leverage. Most new traders don't understand that when using such high levels of leverage, not only can they easily make gains of over 100%, but they can also realize losses greater than 100%. In other words, they could lose more money than they deposited with their broker.
Other than that, I like your website and your videos so far. I am a long term bull of commodities and I find it refreshing to see a former professional trader such as yourself helping people out.
Those results are impressive and goes to show why you have such loyal members such as myself.
For all those who are on the fence about joining don't forget Marketclub offers a 30 day, no risk, 100% money back guarantee.
You can read about it here: http://club.ino.com/join/guarantee/
It takes me awhile to warm up to new services so I can understand if there is some apprehension.
Taking advantage of the 30 day trial will 1.) allow you to research the buy and sell signals yourself and 2.) use Marketclub's tools to make your own trades.
Adam's results are great, but they will always remain "in theory" until you can test it out for yourself. I wasn't truly sold until I had the chance to use the tools and make my own money, then I "knew" that Adam and his team were not lying.
Just passing along my experience. I am primarily an equity and options trader, but these posts always get me excited about the same possibilities in the equities market. I look forward to the same kind of post about ETF's and Equities Adam.
Great results Adam. And very good encouragement for those who are yet to make up their minds to join marketclub.
Thank you for your feedback. We will be publishing a hypothetical portfolio with trade signals by dates very soon. If you care to give our office a call at 1-800-538-7424 I'm sure we can e-mail you a PDF version.
Is there an article laying out your hypothetical portfolio, with ticker symbols, buy dates, current status, etc? That would be helpful if one wanted to get on board with it. Thanks.
Since I follow your recommendations, I say: Good!
Something to ameliorate, perhaps, the follow-up.
Unfortunately, none of these results include any equities/ETFs, so for those of us who rely on short or longer term triangle trading strategies for stocks/ETFs, there is no way to know how well things would have performed. I will tacitly assume about the same.
It would be nice to see several quarters of results for equities/ETFs where the monthly/weekly and weekly/daily triangle strategies were applied. Perhaps you will include these in a subsequent table as I think it is important to see both.
At any rate, Adam's results are impressive.
Thanks for your feedback.
Look for ETF video tomorrow.
P.S. we are working on getting some results for ETF's and equities which we should have ready in the not too distant future
Did you ever post these results? I have not seen any. I'd also be very interested in seeing you develop a backtesting tool for testing the triangles in a particular market.
Look for our Q3 results to be posted after Q3 is over. Probably early next week.
In today's summary did you mean that you "would not agree with the opponents of diversification" or that you would not argue with them?
Very commendable results Adam. Very encouraging for those who are yet to sign up to marketclub.
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