Last year, a start was made with verified actual trading results and I will continue doing this moving forward. The result is based on trading only 1 E-mini S&P future with a (minimum) $10.000,- base amount. This is the Greed and Fear model portfolio.
For all exact trading details, verified results, and investors sign-up page, start at our auto trading page with all the references to related information.
|Month||Result per month|
The minimum base amount (working capital) of $10.000,- is needed for margin, but also to withstand the unavoidable losing trades that will come sooner or later. If an open position is carried over to the next month, it will be counted in that next month when it is closed. The base amount of $10.000,- should be viewed as a minimum to trade one future, and this is where the percentage performances are base upon. Of course, changing the base amount changes the performance percentages, but not the actual dollar performance.
Note that this performance is the so-called net trading result. It does not include the monthly fee for investors who want to copy all the transactions in real-time. Also, this model portfolio is the smallest unit one can trade. For investors who are looking for more volume and risk, it's easy to apply a multiplier. The auto trading platform will have those features in place. For example, you can just as easily trade the Greed and Fear portfolio with 4 E-mini futures and required base amount of $40.000,-
Since all trading decisions are based upon the Greed and Fear indicator, it's important to measure the performance of this indicator as well, the same way it was done in previous years. It gives us a good impression of how useful this indicator is because of the way its performance is compared to the benchmark, the S&P 500. The benchmark comparison is based on index points, so unleveraged. It wouldn't be fair to use trading performance, as this is based on a leveraged trading instrument.
For background information, there's a spreadsheet that shows how the Greed and Fear indicator called the daily directions. To quantify the quality of those signals, read more about how these add up.