Start Small, Start
Smart, Grow Big! That's what Acorn Trader is all about. This system is
designed for the rest of us using the tools normally reserved for
those
with very deep pockets.
Acorn Trader’s objective is to steadily grow your account over time.
Performance Summary for QQQ
4/19/1999 – 11/30/2004
|
Total Net
Profit |
$136.55
|
|
Gross Profit |
$143.49
|
|
Total # of
Trades |
145 |
|
# of Winning
Trades |
138 |
|
Largest Winning
Trade |
$7.75
|
|
Average Winning
Trade |
$1.04
|
|
Ratio (ave
win)/(ave loss) |
1.73% |
|
Max consec.
winners |
70 |
|
Ave # bars in
winners |
1.38 |
|
Max Drawdown |
($7.40) |
|
Gross Loss |
($6.94) |
|
Percent
Profitable |
95.17% |
|
# Losing Trades |
7 |
|
Largest Losing
Trade |
($2.09) |
|
Average Losing
Trade |
($0.99) |
|
Average Trade
(win & Loss) |
$0.94
|
|
Max consec.
losers |
1 |
|
Ave # bars in
losers |
6 |
|
Profit Factor |
20.68 |
The data in
the Performance Summary reflects trading a single share of the QQQ. No
allowance has been made for slippage or commissions. To see how much
money would have been made trading a certain number of shares of the
QQQ’s simply multiply the number of shares you would have started with
by the Total Net Profit of $136.55. For instance, if you
started with 1,000 shares your Total Net Profit would be 1,000 shares
X $136.55 per share = $136,550.00.
Acorn Trader has had 145 trades since 4/19/1999. This means that
the system trades an average of 2.25 trades per month. The system uses
our proprietary “IA” or Intelligent Adaptation to keep
in tune with current market conditions.
Acorn Trader is also extremely robust. Although Acorn Trader
specifically trades the QQQ it performs profitably on a wide range of
stocks. The system’s logic makes Acorn Trader extremely adaptable and
therefore able to effectively trade a wide range of financial
instruments.
Acorn Trader combines several trading systems with money and risk
management
to create a fully integrated system.
In order to develop
your discipline and give you the confidence necessary to profit over
the long term Acorn Trader tells you:
·
What
to trade
·
What
to trade
·
How
much to trade
·
When
to enter a trade
·
How
much to risk
·
When
to exit a trade
·
When
to repeat the above process and when to stand aside
Acorn Trader is
designed using compound interest principles. In other words, the money
management component of Acorn Trader enhances it’s performance beyond
the boundaries of mere linear growth. The graphs below illustrate this
point more clearly:
Figure 1
Figure 2
As you can see the
performance with the system’s money management feature activated far
exceeds the standard performance. In Figure 1 $10,000 of starting
capital grows to $37,009.18 based upon trading 198 shares starting in
April of 1999. This gives us a profit of $37,009.18 - $10,000 =
$27,009.18.
With our money management component included that same $10,000 grows
to $115, 851.55. This gives us a profit of $115,851.55 - $10,000 =
$105,851.55. See Figure 2.
With Acorn Trader’s integrated money management component our profits
are a little over 4 times greater than without it. Not only does this
illustrate the power of proper money management but it clearly
illustrates the performance benefits of a complete trading system.
See Figure 3.
Figure 3
Figure 4 below
illustrates the substantial performance increase Acorn Trader
demonstrates using it’s internal money management system in
combination with simple margin. The results are staggering indeed.
With the powerful synergy of these components included that same
$10,000 grows to $1,236,354.32. This gives us a profit of
$1,236,354.32 - $10,000 = $1,226,354.32. This profit is over 11 times
the profit using Acorn Trader’s money management system without margin
and over 45 times the profit without the benefit of our money
management system and margin.
Please note that
all these examples are with the exact same entries, exits, stops, etc.
The only differences were the systems money management and in our last
example margin.
