EUROPE & USA Portfolio Drawdown Analysis
DAX • FTSE • NASDAQ • S&P500
The Europe & USA Portfolio refers to the markets mentioned above. Drawdowns refer to declines in profits before new equity highs are made. Drawdowns are primarily made up of consecutive losses with a few wins interspersed. This page is designed to give subscribers an idea of the likely adverse drawdown conditions they should expect when trading the Europe & USA Portfolio. I firmly believe trading well is all about risk management and survival. Accordingly this page is designed to assist subscribers in determining the level of risk they should expect to experience while trading IndexALERT's™ signals. Please take some time reviewing the following hypothetical metrics and historical drawdown and duration charts. These metrics commence from March 1992.
Following the charts I'll summarise the key message to take away.
Last updated: 26th April, 2007.
Europe & USA
Portfolio Key Message
I believe the key
message to understand here is that for the majority of time (69%) subscribers
trading the Europe & USA Portfolio should expect to be in drawdown. For
two-thirds of their drawdowns they should expect to suffer losses up to
-$6,226
that will last for at least 106 days.
At the extremes subscribers should expect to experience 11 or more consecutive losing trades, suffer a drawdown equal to and greater than -$21,805 and not make new profits for up to 353 days.
If subscribers can study and accept these drawdown metrics they'll be well positioned and prepared to trade IndexALERT™ through both the good and bad times.
Warning
These performance and
drawdown figures are hypothetical only, showing the results of trading 1
contract per IndexALERT™ signal.
Please be aware
IndexALERT™ only provides general advice. It can only offer general advice as it
does not take into account subscribers’ individual needs, financial situations
and investment objectives. Subscribers need to determine, with or without the
assistance of a
licensed financial adviser as to whether the trading opportunities identified by
IndexALERT™ are appropriate for them given their particular needs, financial
situation and investment objectives. Subscribers also need to be very aware
there is RISK of loss in futures trading. Hypothetical, historic or actual
results do not indicate future success.