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Performance

My trading style is best described as low-frequency quant trading, a portfolio of momentum, swing and trend positions, both long and short. My semi-automated trading system uses five strategies and makes 100+ trades per year. The main idea is to cut losers early and allocate capital into winners.

Below is the equity curve of my backtest since late 2000 with starting capital of $25k as an example. I started building and optimizing this system in early 2018. Backtests don’t predict future performance but can give an idea of the robustness of a method, and if it has positive expectancy going forward. Below the chart is the monthly return table that has out-of-sample (real money) returns since late 2019, and the future is constantly putting the system to its own test.

The table has real returns since late 2019. I’m updating the performance chart monthly with my real trading results. The goal is to limit losses, accumulate and compound risk premium in the US stock market over a longer period of time, using a mechanical price-based approach. Past performance does not indicate future returns.

It’s the total return of my assets, something traders rarely show. I published the backtesting / real money returns to illustrate how good trading performance looks in reality. All trading strategies go through periods of drawdown. There is a lot of manipulation online by marketers showing either short-term trading results or the result of a single trade / account to sell education. If compounding a salesman’s performance in a spreadsheet shows that it would take a few years to turn $100k into billions, then think again. I could show 300% return on my single trade that is meaningless compared to 20% average annual return on the whole portfolio over a 20-year period, and that is great success if you understand compounding.

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