Optimum Systems |
Hypothetical Monthly Results
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2009 | +54.5% | +10.3% | +1.4% | (8.1%) | +3.5% | (3.1%) | +9.0% | +9.4% | +0.5% | (6.3%) | +2.3% | |
| 2010 | (0.3%) | (14.9%) | +2.8% |
| One-day free trial, then $99 per month (Details) |
There is a free trial period of 1 days before you are charged. You may cancel at any time before this (we send you an email at least a day before, to remind you, so there are no surprises.)
Then, after the trial, you will be charged $99 per month. (That is, we will charge you every 30 days - not when the month name on the calendar changes. So it's okay to sign up towards the end of a calendar month. You'll still get a full 30 days.)
Strategy Description 
- This overview was provided by the system developer. Collective2 has not verified it.
Recently Closed Trades
DetailsSystem creator requested that closed trades data below be delayed by seven days.
| Opened ET | B/S | # | Symbol | Price | Closed | Price | Risk | P/L | |
|---|---|---|---|---|---|---|---|---|---|
| 2/18/10 9:39 | BUY | 4,504 | SIRI | SIRIUS XM RADIO INC | 1.11 | 3/1 9:52 | 0.99 | Low | ($531) |
| 2/17/10 9:41 | BUY | 3,703 | END | 1.35 | 2/24 9:57 | 1.18 | Low | ($629) | |
| 2/5/10 10:11 | SELL | 419 | GAP | 7.17 | 2/17 9:45 | 8.23 | Low | ($445) | |
| 2/5/10 10:14 | SELL | 308 | GMXR | 9.74 | 2/17 9:44 | 10.14 | Low | ($123) | |
| 2/9/10 11:13 | SELL | 182 | AONE | 16.58 | 2/17 9:44 | 17.61 | Low | ($187) | |
| 2/9/10 11:14 | SELL | 552 | IDTI | 5.44 | 2/17 9:44 | 5.75 | Low | ($171) | |
| 2/9/10 11:14 | SELL | 418 | PNK | 7.18 | 2/17 9:43 | 7.28 | Low | ($41) | |
| 2/10/10 10:05 | SELL | 467 | LDK | 6.18 | 2/16 10:11 | 6.96 | Low | ($364) | |
| 2/5/10 10:14 | SELL | 353 | WTI | 8.53 | 2/16 10:10 | 9.31 | Low | ($275) | |
| 2/5/10 10:11 | SELL | 155 | EXH | 19.50 | 2/12 10:07 | 20.58 | Low | ($167) | |
| 2/5/10 10:10 | SELL | 589 | DRYS | 5.10 | 2/12 10:06 | 5.34 | Low | ($141) | |
| 2/5/10 10:09 | SELL | 137 | AIG | AMERICAN INTL GROUP INC | 22.01 | 2/11 9:58 | 28.13 | Normal | ($838) |
| 2/5/10 10:12 | SELL | 575 | ADCT | 5.22 | 2/10 10:01 | 6.62 | Low | ($805) | |
| 2/3/10 10:04 | BUY | 3,225 | ACLS | 1.86 | 2/5 10:00 | 1.56 | Normal | ($967) | |
| 2/3/10 10:06 | BUY | 3,488 | JOEZ | 1.72 | 2/5 10:00 | 1.76 | Low | $139 |
Reviews
I have been following this system for many months before it was moved to C2. It provided excellent returns, going long or short depending on market direction. I have never seen a better directional stock trading system.
Statistics
Analytics| Chance of 50% account loss | 0.0% |
|---|---|
| Chance of 100% account loss | 0.0% |
| Average Profit to Drawdown (APD) | 0.13 |
| Average P/L per unit traded | ($0.14) |
| Sum of dividends and cash expir. in model account | $737 |
System Description
Optimum Systems is an End of Day methodology, where securities are identified overnight and traded soon after market open (within the first hour).
Most other timing systems simply use indicators based on price and volume, such as moving averages, MACD, STO, Bollinger bands. Our system is different in that it uses proprietary indicators that incorporate both technical and fundamental information not just for the broad market, but also for almost every stock traded on the US exchanges.
We have two timers: trend following and counter trend. The trend-following timer reacts to whether the general market direction is up (Long Term Up, or LTUp) or down (Long Term Down, or LTDn). During LTUp periods, we are long the market, and during LTDn periods we are short the market. It works in bull and bear markets.
The counter trend timer is a leading indicator that predicts when a correction is about to occur within the general market direction. When a correction is predicted during a LTDn (a bounce), we change direction and go long. This is called our Bottom Feeder Up (BFUp). Sometimes BFUp goes into cash when market conditions are unclear. When a correction is predicted during a LTUp (a reversal), we change direction and go short. This is called our Top Feeder Down (TFDn). The average length of a signal is three to four weeks.
Using these timers, we are almost always in the market. We keep our money working whenever we can. Each signal has different types of stock selections associated with it. During the trend following periods, we use stocks that are trending in the general market direction. During BFUp, we use stocks that have been beaten up or oversold. During TFDn, we use stocks that are over bought.
There are a number of methods Optimum Systems uses to manage risk.
1) Security stops: Optimum Systems has a predefined EOD stop loss and profit stop for each security. These stops mechanically defined during market entry.
2) Signal stops: Optimum Systems has predefined EOD stop loss for each timer signal. HPS will go to cash if a timer/signal is determined to be "broken".
3) Portfolio stops: This is a catastrophic stop where HPS will go to cash if the draw reaches a predetermined limit. Trading will continue when the market returns to “normalcy”.
4) Position sizing: Each signal has a predefined cash position. This is based on the volatility of the particular signal.
5) Portfolio diversity: Each portfolio uses diversity criteria (industry, sector, etc.) when selecting securities.
This system was back tested for more than 9 years and paper traded for more than 9 months before bringing it to C2. I personally trade this methodology.
All comments are greatly appreciated and all questions will be answered in a timely fashion.
The 9+ years of backtesting results (see below) are unconfirmed by C2, however I am including them for your perusal. Additional details can be provided including trade history, draw, clamar ratio, number of trades, etc.. Entry and exit prices are based on the next day open price.
As Optimum Systems is an EOD methodology, backtesting results do not include any intraday broker stops.
Month% G/L
Jan-2000, 285.3%
Feb-2000, 165.3%
Mar-2000, 18.9%
Apr-2000, 120.8%
May-2000, 81.4%
Jun-2000, -21.4%
Jul-2000, 36.7%
Aug-2000, 14.7%
Sep-2000, 20.9%
Oct-2000, 46.1%
Nov-2000, 42.9%
Dec-2000, 43.0%
Jan-2001, -4.4%
Feb-2001, 47.1%
Mar-2001, 39.5%
Apr-2001, 44.8%
May-2001, 40.9%
Jun-2001, -0.8%
Jul-2001, 5.3%
Aug-2001, 11.8%
Sep-2001, 1.5%
Oct-2001, 92.9%
Nov-2001, 12.8%
Dec-2001, 8.2%
Jan-2002, 0.2%
Feb-2002, 12.0%
Mar-2002, 11.6%
Apr-2002, 4.6%
May-2002, 18.1%
Jun-2002, 40.0%
Jul-2002, 56.8%
Aug-2002, 23.5%
Sep-2002, 10.0%
Oct-2002, 4.8%
Nov-2002, 38.9%
Dec-2002, -9.2%
Jan-2003, 22.1%
Feb-2003, -1.6%
Mar-2003, 23.9%
Apr-2003, 53.4%
May-2003, 64.5%
Jun-2003, 70.0%
Jul-2003, 7.4%
Aug-2003, 20.3%
Sep-2003, -6.5%
Oct-2003, 24.9%
Nov-2003, 20.2%
Dec-2003, 14.0%
Jan-2004, 21.0%
Feb-2004, -5.2%
Mar-2004, -16.0%
Apr-2004, 16.2%
May-2004, -6.3%
Jun-2004, 11.8%
Jul-2004, 3.2%
Aug-2004, 14.4%
Sep-2004, 11.0%
Oct-2004, 5.9%
Nov-2004, 18.2%
Dec-2004, 16.6%
Jan-2005, -5.4%
Feb-2005, 22.3%
Mar-2005, -6.9%
Apr-2005, -2.3%
May-2005, 13.5%
Jun-2005, 14.5%
Jul-2005, -0.1%
Aug-2005, 20.5%
Sep-2005, 10.7%
Oct-2005, 22.5%
Nov-2005, 4.2%
Dec-2005, 17.3%
Jan-2006, 3.2%
Feb-2006, 15.7%
Mar-2006, 21.9%
Apr-2006, 4.9%
May-2006, -2.0%
Jun-2006, 4.2%
Jul-2006, 1.1%
Aug-2006, 9.1%
Sep-2006, -1.1%
Oct-2006, 12.4%
Nov-2006, 2.0%
Dec-2006, 3.2%
Jan-2007, -0.3%
Feb-2007, -11.1%
Mar-2007, -0.9%
Apr-2007, 7.9%
May-2007, -1.9%
Jun-2007, -12.6%
Jul-2007, -30.3%
Aug-2007, 27.8%
Sep-2007, 22.0%
Oct-2007, 16.1%
Nov-2007, 35.5%
Dec-2007, -1.6%
Jan-2008, 57.4%
Feb-2008, 7.8%
Mar-2008, 23.8%
Apr-2008, 1.2%
May-2008, 3.3%
Jun-2008, 9.5%
Jul-2008, 20.3%
Aug-2008, 10.8%
Sep-2008, 5.4%
Oct-2008, 46.2%
Nov-2008, 15.6%
Dec-2008, -1.8%
Jan-2009, 8.5%
Feb-2009, 2.6%
- This system description was provided by the system developer. Collective2 has not verified it.


