HOW MUCH PROFIT CAN I MAKE WITH SYSTEM TRADING?-FULL DETAILED PERFORMANCE TEST OF SMARTSIGNALS

We are quite coming to the end of the year 2012. It is time for most of us to sit back and review our trading , results and patterns and plan for the year ahead. Lot of analysts are projecting that markets may make a new high. But we all know that something like that may not happen in a whisker. Markets will still have its phases of correction, range bound moves and break outs or break downs in this process.

BankNifty is expected to outperform the index in the coming future. The big question that arises is do we have enough tools or resources to be able to capture the moves. Does our trading system or style enable us to trade in a systematic manner and come out winners?

We strongly believe in a system driven approach to trading because that allows us to quantify the results. We received a few queries of what can be the profit expected if we trade SMARSIGNALS for the next one year. How has it performed over the past one year? Has it been able to capture the moves?

We decided to code put our system and test it on a leading trading system software to analyze and review the performance: Read on our detailed review of SMARTSIGNALS full tested performance for BANKNIFTY over the last one year.

TEST PERFORMANCES:

Starting Capital Used: 1,00,000 INR

Fixed Lots traded: 2 Lots BANKNIFTY (50 QTY)

TEST PERIOD:  1/01/2012- 14/12/2012

Test Statistics:

Details	All trades
Initial capital	100000
Ending capital	310486.52
Net Profit	210486.52
Net Profit %	210.49%
Exposure %	11.25%
Net Risk Adjusted Return %	1871.59%
Annual Return %	229.28%
Risk Adjusted Return %	2038.70%

Profit Equity Curve:

SMARTSIGNALS BANKNIFTY 2012 EQUITY CURVE

MONTHLY RETURN PROFIT TABLE

DRAWDOWN CURVE

REVIEW SUMMARY

• Closing Capital: 3,10,486 INR
• Total Trades: 109
• Total profit of 2,10,486 INR could had been achieved had we traded just 2 lots of BankNifty on our Advanced SMARTSIGNALS over the last 1 year.
• Since lot size was not increased with capital and we traded only 2 lots per lac. Potential of profit can be much higher with dynamic increase of lot size.
• Only 1 month was a period where system gave negative results.
• Maximum Drawdown witnessed was just  11%
• All months where strong move happened, system was able to capture the move and outperform