We've had numerous requests for our Q3 numbers and we apologize for getting them published so late. It's not that they are bad, in fact, they are our best quarterly numbers so far for the year. Q4 looks to be stellar and we're looking forward to sharing those numbers with you in the early part of 2010.
So how do we do in Q3?
As you may or may not know we track six markets and have been doing this since Q3 of 2007. The six markets are: corn, wheat, soybeans, crude oil, gold and the dollar index.
In Q3 the big winner in this six-pack was crude oil which produced a profit of $5,920. This was in sharp contrast to the two previous quarters where we lost money in this particular market. Overall, however, crude oil has been an extraordinarily profitable market using our "Trade Triangle" technology. The next market that came in as a positive for us was the dollar index which produced a $3,000 gain. Corn and gold were the only two markets that showed a negative return for the quarter.
The key, as we have said in previous results, is the diversification and the benefit you get from being diversified. Not only does it reduce your risk, it also has the ability of the enhancing profits.
The results shown are based on a hypothetical account of $50,000. Commissions of course would make a difference in the results, but are not counted in the numbers below. For the quarter, the portfolio results produced a return of 13.9%. Again this is in sharp contrast to the returns that were seen in Q4 '08. At the time we mentioned that these over-the-top returns were probably unsustainable in the future. I believe that the results in the future will be a combination of big moves in some calendar quarters and smaller losses or gains in other quarters.
As you can see from the charts that accompany this text, overall there has been a steady upward trend in the cumulative results.
On the whole, this portfolio has proven to be 89% correct on a quarterly basis. The one market that has shown consistent profits every quarter has been the wheat market. We would not, however, recommend just trading wheat because it has such a good record. It is important to diversify your holdings into several different markets even though sometimes these markets will have a negative impact on performance. In general, they will not diminish your ROI, but rather they will enhance it.
As with any investment approach there are no guarantees and there are no guarantees that this strategy will work in the future. It is also important to know that the numbers that we show are hypothetical and not based on actual trading in the market. Actual market conditions can cause slippage and markets being unable to be filled at certain levels. You need to take all of these into consideration when deciding on a market approach.
The approach that is used for this portfolio is based on our "Trade Triangle" technology and recommended strategy to filter the "Trade Triangles" in such a way as to put the odds in your favor.
As we stated earlier, Q4 is shaping up to be a excellent quarter and we look forward to presenting the numbers to you in the early part of the new year.
Every success in the future,
Adam Hewison
President, INO.com
Co-creator, MarketClub
Melinda,
Thank you for your feedback.
We only use our Trade Triangle Technology to trade our "World Commodity Portfolio".
That's it. It is very simple.
Thanks,
Adam
Hi Adam,
The strategy employed is based on daily,weekly, monthly trade trianagles (Longer term) or did you employ a combination of swing, long and short term strategies.
Alan,
Thanks for your feedback. We will be publishing our results in early January.
Looks like a good quarter so far.
Adam
Hi
great results,
Now how do I follow these trades, how do I know when you enter and exit, where do you show this portfolio, or is it just a general portfolio?
do we just track these on our own share dealers web sites?
Alan
could you please put in a description when you enter a trade the credentials it takes to enter in the video you said on the one it was an exit only not an entry until the market proved to have a change in direction so does that mean the + or - 75 to enter a trade on the weekly. Wish there was a laid out plan or even buy sell entries which popped up wouldn't that be easier based on your triangle approach, so people could enter around the same time as you or would you need real time data. Sincerely, Robert Frank.
Robert,
Thank you for your feedback. The suggestion you make are very valid. We continue to work on making MArketClub both easier to use and more powerful.
Our portfolio is based on our Trade Triangle Technology and for futures we used the weekly Triangles for trend and the daily Triangles for timing. The exception is on the dollar index which we use the monthly triangles for the trend and the weekly triangles for entry and exit points.
Once again thank you for your valuable feedback.
All the best,
Adam
Could someone post good recommendations for a brokerage that lets trade futures?
Thanks,
Rakesh
On Marketclub, do you advise what stop levels to put in place? Are the results taking account of those stops or are they ignored in the calculations?
John,
Thanks for your feedback.
We use a reversal system that is used in the program. The results are shown in the calculations.
Thanks,
Adam
Adam,
When you say reversal is used in the program, does it mean that the sell signal is programmed to include stop loss.
Thanks,
Rakesh,
Yes, that is correct,
All the best,
Adam
Adam,
Could you please share your thoughts on trading ETF corresponding to those commodities and using the same strategy?
Thanks.
Rakesh,
Not sure it would work quite the same way with ETFs.
This is a future play.
All the best,
Adam
Scott,
Just type in Q3 in the search box for anything you want to find on our blog.
Here is the link you are looking for.
http://club.ino.com/trading/2008/03/we-thank-you/
All the best,
Adam
Where is the link to the original posting of this portfolio...??? I would like to put this portfolio together. Thanks.
Adam,
Since these are long term positions in 6 commodity markets can you expound on what triangle strategy you are using (monthly/weekly). I assume you are in the market both long and short. How many contracts do you hold in each, and when you buy or sell how far out in the contract month do you go?
Thanks
Randy
Randy,
Thank you for your feedback and your comments.
In the six commodity markets we trade we use the weekly and daily triangles on the commodities and the monthly and weekly triangles on the dollar index.
The results of based on trading one contract for one commodity. I recommend trading only the nearby contracts for liquidity.
Hope this answers your question.
All the best,
Adam
Adam, I've just "discovered" yur World Commodity Index. and am trying to get an overall picture of how to participate in this activity.. I read your blog of 2090-11-03 which gives a partial explanation for this layman.. I sure would appreciate a Video presentation by you, of a specific moment in those markets, and how you implement this procedure.. How nearby , for example, is "nearby " contracts? Does one only go if both triangles are green? etc etc.. Does one just omit buying a contract of a commodity if the signals are negative, or play it some other way?
these may sound like square one, but so am I! thanks
Paul,
Thank you for your feedback.
One of the keys to trading in futures markets is to trade in the nearby months. If you go too far out the markets are too illiquid and are expensive to get in and out of. That is why we like to trade the nearby month. For example we would be looking at April crude oil. As the market trend continues we would roll over into the next month. Yes, I understand commissions are involved, but those commissions will be less than if you are getting bad fills in the distant months.
As far as the trade triangles are concerned the key here is to filter your trades using our trade triangle technology. This helps to eliminate but not eradicate all losing trades.
If you'd like to help with this may I suggest that you call our friendly support staff at 1-800-538-7424 and extension 106.
All the best,
Adam
Hardy,
It is not often that you see a company understating their results, but that is just what we did by accident. The spread sheet we were using was missing one line of cells. All fixed now.
Thanks for making us look better.
Adam
There are some math errors
Wheat total should be $50,550
Soybean total should be $59,587.50
Crude Oil total should be $122,260
Gold total should be $40,002
Dollar Index total should be $22,112
TOTAL TOTAL should be $320,867.25
Pretty good return for 27 months on a 50k account
Lumir,
Thanks for your feedback.
One of the most important rules in trading is not to put all your eggs in one basket. The monthly green Triangle is still in place but I noticed that the weekly Triangle is red, which means that the intermediate trend in down.
If you are uncomfortable in your position exit it now. It doesn't matter if the market goes up tomorrow or the next day you will feel better having gotten out of the market. If you are trading based on the monthly Triangle then wait for a signal.
All the best,
Adam
Dear Adam,
your support is great and I made also a good profit in 3Q, but I made one big mistake now. I bought 2contracts of natgas DEC09 at Mothly green signal. I sold one yesterday because of margin call and hold one. It looks like nobody needs natgas at all.
What do you advise to do.
TIA,
Lumir
A very good set of results for people who want steady growth and not a high octane pastime. It may be a good time to re emphasise the strategy used - especially with regard to the filtering process.