Was looking at YTD performance of a few systems that some brokers can autotrade for you and almost all of them showed either what I would consider rather mediocre results (given the drawdowns and the possibility the system will perform worse) or losses. Some had horrendous losses . Looking at the recent trades, one swing trading system went long NQ prematurely on October 10 just before it went down even lower then went short on 10/14 to close the trade on 10/25 !!
I could never ever trade such a system! Wouldn't that be reason to throw that system away ? surely going short at the bottom means something is really wrong with the system.
I think obviously this year has been difficult for almost everybody who was not heavy in the energy sector and I should not expect fantastic performance from any system but this really put me off trading systems offered by vendors and brokers. I understand systems used by leading CTA's are not so different in their design so how do some CTA's end up with those stellar returns?Surely being well capitalized and trading OPM must make a big difference.
I could never ever trade such a system! Wouldn't that be reason to throw that system away ? surely going short at the bottom means something is really wrong with the system.
I think obviously this year has been difficult for almost everybody who was not heavy in the energy sector and I should not expect fantastic performance from any system but this really put me off trading systems offered by vendors and brokers. I understand systems used by leading CTA's are not so different in their design so how do some CTA's end up with those stellar returns?Surely being well capitalized and trading OPM must make a big difference.
