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THIS IS A LEGACY SYSTEM THAT WAS SOLD WHEN TREND-FOLLOWING WORKED ON THE DOMESTIC MARKETS. I DO NOT SELL IT ANYMORE. THE MATERIALS WILL BE UPDATED PERIODICALLY FOR THOSE INTERESTED IN SEEING HOW COMPLETELY THE DOMESTIC COMMODITY MARKETS HAVE CHANGED.

THE ABERRATION TRADING SYSTEM vs. THE ABERRATION STRATEGY

I'm Keith Fitschen and I developed the Aberration Trading System in 1986. I first marketed it to the public in 1993, and since release, it's consistently been one of the best commodity futures trading systems around. It has always been named, "One of the Top Ten Trading Systems of All Time" by Futures Truth. None of the four portfolios we recommended in the trading manual had a losing year for nine straight years. But starting about the year 2000, the basic commodity markets were becoming increasingly volatile.

I sought to find an answer to commodity futures trading in the new, more volatile environment and focused on risk throughout a signaled trade. The answer I found was relatively simple: if risk is outside normal bounds when the trade is signaled, the trade should be bypassed. Or, if risk gets outside of normal bounds during a trade, the trade should be exited. The original Aberration Trading System was augmented with rules to implement this logic, and the result is THE ABERRATION STRATEGY.

DISCLAIMER

The commodity trading futures performance reported in on this website is hypothetical. It is based on the use of computerized system logic on CSI data. Trading costs (slippage and commission) have been accounted for by deducting $25 from each trade. Please note the following Commodity Futures Trading Commission disclaimer on hypothetical trades:

NOTICE: "HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

PROFITABILITY BY COMMODITY

The following tables show the performance of THE ABERRATION STRATEGY on a basket of 60 world-wide commodities from 1980. A slippage/commission figure of $25 has been deducted from each trade.

Aberration trading system on Grains (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Corn
32
37
32025
464
Oats
21
49
6825
97
Soybeans
29
32
35300
578
Bean Meal
29
35
48110
751
Bean Oil
28
40
25564
375
Wheat
24
46
13062
186
KC Wheat
28
37
57362
882
Rough Rice
26
25
35515
696
Totals
217
301
253714
489

 

Aberration trading system on Meats (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Live Cattle
27
44
12475
175
Lean Hogs
23
43
10079
152
Feeder Cattle
25
43
33300
489
Totals
75
130
55855
272

 

Aberration trading system on Softs (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Coffee
22
27
47000
959
Cotton
28
34
58900
950
Lumber
34
36
49444
706
Cocoa
23
42
-4155
-64
Sugar
27
31
25071
432
Orange Juice
26
48
767
10
Totals
160
218
177028
468

 

Aberration trading system on Metals (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Copper
26
32
32725
564
Palladium
27
27
78789
1459
Silver
18
32
3710
74
Gold
19
28
21934
466
Platinum
26
38
2640
41
London Copper
20
17
7105
148
London Alloy
17
19
42920
1192
London Aluminum
21
22
53400
1241
London Nickel
26
16
74335
1769
Totals
200
242
317560
718

 

Aberration trading system on Energies (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Crude Oil
28
18
49860
1083
Natural Gas (mini)
7
12
2737
144
Heating Oil
23
30
18406
347
Reformulated Gas
20
20
38286
957
London Brent Crude
20
15
29925
855
Totals
98
95
139241
721

 

Aberration trading system on Currencies (1980 - Oct 2013
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Japanese Yen
33
33
56562
857
Swiss Franc
30
29
70424
1193
Canadian $
27
35
12779
206
British Pound
24
41
17843
274
Dollar Index
28
27
58740
1068
Mexican Peso
12
24
10337
287
Australian ($)
25
35
8019
133
Euro Currency
29
25
53512
990
Totals
208
249
288221
630

 

Aberration trading system on US Financials (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
30-Year Bond
33
32
60781
935
10-Year Note
28
28
70256
1254
5-Year Note
21
24
28335
629
2-Year Note
24
16
30812
770
Eurodollar
24
33
22393
392
Totals
130
133
212579
808

 

Aberration trading system on Foreign Financials (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Australian Bond
26
31
38315
672
Canadian Bond
21
26
19743
420
Euro Bund
22
19
57472
1401
Long Gilt
25
38
12000
190
Spanish Bond
16
15
34291
1106
Simex Jap. Bond
15
20
13371
382
Euro Bobl
20
18
40222
1058
Totals
145
167
215416
690

 

Aberration trading system on Stock Indices (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
S&P 500 (mini)
22
41
15912
252
Midcap 400 (mini)
18
22
10259
256
Nasdaq 100 (mini)
14
20
18540
545
Dow Jones
12
23
2450
56
Russell 2000 (mini)
13
10
15945
693
DAX
8
10
9805
545
Hang Seng Index
12
14
29037
1116
Nikkei
15
21
9150
254
Totals
114
161
111119
404

 

Aberration trading system Group Summary (1980 - Oct 2013)
Commodity
Winning Trades
Losing Trades
Total Profit
Profit-per- Trade
Grains
217
301
253714
489
Meats
75
130
55855
272
Softs
160
218
177028
468
Metals
200
242
317560
718
Energies
98
95
139241
721
Currencies
208
249
288221
630
US Financials
130
133
212579
808
Foreign Financials
145
167
215416
690
Stock Indices
114
161
111119
404
Totals
1348
1695
1771726
582

The performance of the strategy is fairly consistent across the commodity groups, with the currencies, energies, US financials, and metals trading the best. In this group of 60 commodities, only 1 has seen a loss in it's lifetime. This is remarkable considering the fact that the exact same rules and parameter values are used for the whole set.

HOW YOU TRADE THE ABERRATION STRATEGY

We've developed portfolios for various account sizes. Each portfolio uses diversification across the groups, and a first-N-in-a-group trading approach. The smallest portfolio was built by selecting the lowest risk, best performing commodities. Risk was always considered first. Succeeding portfolios build on the last by adding more commodities to each group.

The Aberration Trading System STARTER PORTFOLIO

The Aberration Trading System starter portfolio is suitable for accounts starting in the $10,000 to $30,000 range. The portfolio is diversified across seven commodity groups to gain exposure in uncorrelated markets. The commodities in each group have been carefully chosen for their profit-to-risk characteristics. The portfolio is: Corn, KC Wheat, Live Cattle, Feeder Cattle, Cotton, Sugar, Palladium, Copper, Crude Oil, Reformulated Gas, the Dollar Index, Swiss Franc, 10-Year Notes, and 2-Year Notes. Only one commodity in each group is traded at a time, and a one-lot is traded. A slippage/commission deduction of $25 has been taken from each trade. The following equity chart shows portfolio growth since 1980.

AberrationTradingSystemStart.bmp

The Aberration Trading System Starter Portfolio Equity Curve

As the graph shows, equity buildup is fairly smooth and consistent. With an average annual profit of $15,299, the average first-year return on a $10,000 to $30,000 account would range from 50 percent to 151 percent. From the risk point of view, the average start-trade draw-down a trader could expect when initiating trading this portfolio would be $2,972, between 10 and 29 percent of starting equity. But the trader should note that in 1987 the maximum start-trade draw-down was $15,217. As equity builds, the portfolio can be expanded to maintain a high rate of return.

The following table shows the Aberration trading system starter portfolio performance year-by-year. The column marked average start-trade draw-down is compiled by finding the start-trade draw-down for the portfolio starting at each trade origination and then averaging the results. For example, if the portfolio generated 30 trades in a given year, 30 portfolio equity curves would be generated, one starting at the trade origination of each trade, and the low equity point found for each equity curve. The maximum start-trade draw-down for the year represents the largest point below starting equity a trader would have seen had he started trading the portfolio at the worst possible time that year. (Note that the start-trade draw-down tests every trade originating in a given year, but that the low equity point may occur in the next year. These are reported in the trade origination year averages)

The Aberration Trading System Starter Portfolio

Profit vs. Average and Max Start-Trade Draw-Down (STDD)

Year
Profit ($)

Average STDD ($)

Max STDD ($)
1980
6942
2664
6237
1981
23567
1598
4017
1982
2498
2065
5384
1983
451
1645
3382
1984
15407
1258
4219
1985
15678
2031
5254
1986
20854
904
2474
1987
16394
5778
15217
1988
4871
2233
8675
1989
9817
2801
7349
1990
47529
510
3375
1991
27466
1637
5881
1992
8570
1178
4061
1993
11851
3228
6675
1994
17194
1984
6639
1995
1341
4447
10809
1996
8891
3202
6395
1997
1650
6095
11368
1998
21481
2123
5072
1999
4373
3787
9502
2000
14813
2898
5540
2001
25290
2382
6186
2002
23676
734
3375
2003
14459
5221
10024
2004
17851
5392
9803
2005
6110
2426
7054
2006
26075
2511
9362
2007
2761
5981
11001
2008
41461
2206
10365
2009
20774
2107
6661
2010
31163
4441
12860
2011
4308
11334
18001
2012
-7439
5177
13989
Oct 2013
-12686
2787
5336
Average 14332    

By looking at the distribution of all start-trade draw-downs, a probability of success can be determined. The following figure shows the distribution generated by the software. It shows the probability of experiencing a start-trade draw-down of a certain amount of dollars or less. For example this portfolio’s distribution shows that 70 percent of the time traders initiating the trading of this portfolio would experience a start-trade draw-down of about $4,000 or less. And about 91 percent of the time, the start-trade draw-down would have been about $8,000 or less. Conversely, 9 percent of the time the start-trade draw-down would have been greater than $8,000.

AberrationTradingSystemStarttdd.bmp

The Aberration Trading System Starter Portfolio Start-Trade Drawdown Distribution

If margin estimates and starting account equity are factored in, the probability of success can be determined. On average, there are 3 group trades on at a time. Assuming an average margin of $1,500 for each commodity in this portfolio, the average margin requirement would be about $4,500. If starting account equity were $15,000, approximately $10,500 of reserves above the average margin requirement is left for a start-trade draw-down cushion. Entering the figure with $10,500 and reading over to the line, historically there was a 98 percent probability of success. But if an account was initially funded with $10,000, the $5,500 of reserves would yield only an 80 percent chance of success. This type of analysis is instructive, but remember the maxim, “A STRATEGIES’ LARGEST DRAW-DOWN IS ALWAYS IN THE FUTURE”.

The Aberration Trading System MIDSIZE PORTFOLIO

THE ABERRATION STRATEGY mid-size portfolio is suited for accounts starting in the $30,000 to $50,000 range. The portfolio is diversified across seven commodity groups to gain exposure in uncorrelated markets. The commodities in each group have been carefully chosen for their profit-to-risk characteristics. The portfolio is: Corn, KC Wheat, Bean Meal, Feeder Cattle, Live Cattle, Lean Hogs, Cotton, Sugar, Coffee, Palladium, Gold, Copper, Crude Oil, Reformulated Gas, Natural Gas, the Dollar Index, Swiss Franc, Euro-Currency, 10-Year Notes, 2-Year Notes, and 30-Year Bonds. Only two commodities in each group are traded at a time, and a one-lot is traded. A slippage/commission deduction of $25 has been taken from each trade. The following equity chart shows portfolio growth since 1980.

AberrationTradingSystemMid.bmp

The Aberration Trading System MidSize Portfolio Equity Curve

As the graph shows, equity buildup is fairly smooth and consistent. With an average annual profit of $25,067, the average first-year return on a $30,000 to $50,000 account would range from 50 percent to 84 percent. From the risk point of view, the average start-trade draw-down a trader could expect when initiating trading this portfolio would be $4,450, between 9 and 15 percent of starting equity. But the trader should note that in 2006 the maximum start-trade draw-down was $25,956. As equity builds, the portfolio can be expanded to maintain a high rate of return.

The following table shows portfolio performance year-by-year. The column marked average start-trade draw-down is compiled by finding the start-trade draw-down for the portfolio starting at each trade origination and then averaging the results. For example, if the portfolio generated 30 trades in a given year, 30 portfolio equity curves would be generated, one starting at the trade origination of each trade, and the low equity point found for each equity curve. The maximum start-trade draw-down for the year represents the largest point below starting equity a trader would have seen had he started trading the portfolio at the worst possible time that year. (Note that the start-trade draw-down tests every trade originating in a given year, but that the low equity point may occur in the next year.).

The Aberration Trading System Midsize Portfolio

Profit vs. Average and Max Start-Trade Draw-Down (STDD)

Year
Profit ($)

Average STDD ($)

Max STDD ($)
1980
19151
2912
6907
1981
30966
2614
5994
1982
17739
3656
8481
1983
10688
1679
4977
1984
30757
3115
8059
1985
22544
3376
9489
1986
31211
583
2368
1987
39686
2956
10340
1988
18721
2751
9769
1989
23713
3006
10340
1990
59531
1632
8056
1991
44072
2863
7875
1992
23935
1377
4681
1993
23673
2800
8736
1994
38079
1498
4722
1995
20949
6211
17619
1996
3421
5329
15070
1997
10586
7167
14302
1998
40208
2599
9318
1999
-441
7187
20811
2000
25015
3812
7580
2001
13562
6481
14579
2002
34346
3071
15836
2003
5353
9863
19464
2004
32877
4844
13881
2005
21558
2717
7111
2006
27436
14304
19046
2007
3505
5818
14860
2008
72404
2101
6887
2009
17271
3767
9106
2010
54264
1743
5193
2011
15620
5444
11034
2012
14334
5490
12092
Oct 2013
-25875
8032
11677
Average 23702    

By looking at the distribution of all start-trade draw-downs, a probability of success can be determined. Figure 10 shows the distribution generated by the software. It shows the probability of experiencing a start-trade draw-down of a certain amount of dollars or less. For example this portfolio’s distribution shows that about 72 percent of the time traders initiating the trading of this portfolio would experience a start-trade draw-down of about $6,000 or less. And about 90 percent of the time, the start-trade draw-down would have been about $12,000 or less. Conversely, 10 percent of the time the start-trade draw-down would have been greater than $12,000.

AberrationTradingSystemMidtdd.bmp

The Aberration Trading System Midsize Portfolio Start-trade Drawdown Distribution

If margin estimates and starting account equity are factored in, the probability of success can be determined. On average, there are 6 group trades on at a time. Assuming an average margin of $1,500 for each commodity in this portfolio, the average margin requirement would be about $9,000. If starting account equity were $30,000, approximately $21,000 of reserves above the average margin requirement is left for a start-trade draw-down cushion. Entering the curve at $21,000 and reading over to the line, there is a probability of success of about 98 percent. This type of analysis is instructive, but remember the maxim, “A STRATEGIES’ LARGEST DRAW-DOWN IS ALWAYS IN THE FUTURE”.

The Aberration Trading System FULLSIZE PORTFOLIO

THE ABERRATION STRATEGY full-size portfolio is suited for accounts starting in the $25,000 to $100,000 range. The portfolio is diversified across all eight commodity groups to gain exposure in uncorrelated markets. The commodities in each group have been carefully chosen for their profit-to-risk characteristics. The portfolio is: Corn, KC Wheat, Bean Meal, Bean Oil, Rough Rice, Feeder Cattle, Live Cattle, Lean Hogs, Cotton, Sugar, Coffee, Lumber, Orange Juice, Palladium, Gold, Copper, Crude Oil, Reformulated Gas, Natural Gas, Heating Oil, the Dollar Index, Swiss Franc, Euro-Currency, Japanese Yen, 10-Year Notes, 2-Year Notes, 30-Year Bonds, 5-Year Notes, the Eurodollar, Hang Seng Index, and the Nikkei. A max of four commodities in each group are traded at a time, and a one-lot is traded. A slippage/commission deduction of $25 has been taken from each trade. The following equity chart shows portfolio growth since 1980.

AberrationTradingSystemFull.bmp

The Aberration Trading System Fullsize Portfolio Equity Curve

As the graph shows, equity buildup is fairly smooth and consistent. With an average annual profit of $37,095, the average first-year return on a $50,000 to $100,000 account would range from 37 percent to 74 percent. From the risk point of view, the average start-trade draw-down a trader could expect when initiating trading this portfolio would be $6,233, between 6 and 12 percent of starting equity. But the trader should note that in 2002 the maximum start-trade draw-down was $35,345. As equity builds, the portfolio can be expanded to maintain a high rate of return.

The following table shows portfolio performance year-by-year. The column marked average start-trade draw-down is compiled by finding the start-trade draw-down for the portfolio starting at each trade origination and then averaging the results. For example, if the portfolio generated 30 trades in a given year, 30 portfolio equity curves would be generated, one starting at the trade origination of each trade, and the low equity point found for each equity curve. The maximum start-trade draw-down for the year represents the largest point below starting equity a trader would have seen had he started trading the portfolio at the worst possible time that year. (Note that the start-trade draw-down tests every trade originating in a given year, but that the low equity point may occur in the next year. These are reported in the trade origination year averages)

The Aberration Trading System Fullsize Portfolio

Profit vs. Average and Max Start-Trade Draw-Down (STDD)

Year
Profit ($)

Average STDD ($)

Max STDD ($)
1980
23928
2318
5978
1981
42482
5331
11467
1982
11722
5145
12174
1983
17164
2544
8998
1984
38274
3073
7898
1985
37361
2625
9352
1986
41141
782
3468
1987
64545
5340
16116
1988
17204
3349
11316
1989
34107
2913
10781
1990
91949
1211
7690
1991
70769
2366
8241
1992
39062
3321
11780
1993
66069
1652
9215
1994
41743
2552
10738
1995
33892
5200
12802
1996
44366
4891
18405
1997
28308
7112
12016
1998
26145
2901
11758
1999
22685
7380
17493
2000
48675
3588
10475
2001
34931
10690
20691
2002
36374
13709
35345
2003
-2253
17182
32172
2004
24818
8205
18427
2005
28825
6176
11627
2006
23519
21657
34936
2007
13561
9500
27993
2008
120241
3862
15379
2009
2422
14471
26780
2010
57918
6233
14156
2011
-3563
$6,233
$14,156
2012
14998
Oct 2013
-25003
Average 33554    

By looking at the distribution of all start-trade draw-downs, a probability of success can be determined. Figure 12 shows the distribution generated by the software. It shows the probability of experiencing a start-trade draw-down of a certain amount of dollars or less. For example this portfolio’s distribution shows that 75 percent of the time traders initiating the trading of this portfolio would experience a start-trade draw-down of about $6,000 or less. And about 90 percent of the time, the start-trade draw-down would have been about $12,000 or less. Conversely, 10 percent of the time the start-trade draw-down would have been greater than $12,000.

AberrationTradingSystemFulltdd.bmp

The Aberration Trading System Fullsize Portfolio Start Trade Drawdown Distribution

If margin estimates and starting account equity are factored in, the probability of success can be determined. On average, there are 10 group trades on at a time. Assuming an average margin of $1,500 for each commodity in this portfolio, the average margin requirement would be about $15,000. If starting account equity were $50,000, approximately $35,000 of reserves above the average margin requirement is left for a start-trade draw-down cushion. Since there has never been a $35,000 start-trade draw-down on this portfolio, the historical probability of success was 100 percent. This type of analysis is instructive, but remember the maxim, "A STRATEGIES' LARGEST DRAW-DOWN IS ALWAYS IN THE FUTURE".

ABERRATION TRADING SYSTEM PORTFOLIO COMPARISON

Many traders will review the Aberration trading system portfolio material presented here (summarized in the table below) and decide that when account size grows, it is better to trade more than a one-lot in the "Starter Portfolio" than move up to the next larger portfolio. This is a mistake. those traders are focusing on profits rather than risk, which is the crucial element in whether a small-account trader will survive and grow to be a large-account trader.

Aberration Trading System Portfolio Comparison

Portfolio
Annual Return on Account Size (percent)

Average STDD on Account Size (percent)

Starter
50-151
10-29
Mid-Size
50-84
9-15
Full-Size
37-74
6-12

The trader who looks at profits will see that on a $10,000 to $30,000 account, an annual return of between 50 and 151 percent can be made. He reasons that if he can make 151 percent on $10,000 by trading 1 contract per signal, when the account size grows to $20,000 he can trade 2 contacts per signal and still make 151 percent. This is true, but what he is neglecting is risk. Trading the starter portfolio with $10,000 yields an 85 percent chance of success; about a 5 out of 6 chance. That’s like playing Russian roulette. Doubling the number of contracts at $20,000 still yields the 5 out of 6 chance. Sooner or later this strategy will lead to a trading blow-out.

FOR LARGE ACCOUNT TRADERS, The Aberration Trading System GLOBAL PORTFOLIO

THE ABERRATION STRATEGY Global Portfolio is suited for accounts that are larger than $100,000. The portfolio is diversified across the commodity groups to gain exposure in uncorrelated markets. The portfolio consists of: Corn, KC Wheat, Bean Meal, Bean Oil, Rough Rice, Oats, Soybeans, Feeder Cattle, Live Cattle, Lean Hogs, Feeder Cattle, Pork Bellies, Cotton, Sugar, Coffee, Lumber, Orange Juice, Palladium, Gold, Copper, Platinum, London Alloy, London Aluminum, London Nickel, Crude Oil, Reformulated Gas, Natural Gas, Heating Oil, Propane, the Dollar Index, Swiss Franc, Euro-Currency, Japanese Yen, British Pound, Canadian Dollar, Mexican Peso, 10-Year Notes, 2-Year Notes, 30-Year Bonds, 5-Year Notes, the Eurodollar, Canadian Bond, Euro-Bund, Spanish Bond, Simex JGB, Hang Seng Index, Nikkei, DAX, Nasdaq mini, and the S&P mini. The following table shows the return and drawdown when risking two percent of equity on each trade and limiting group exposure to four trades, or less.

Aberration Trading System Global Portfolio

Annual Return and Annual Max Draw-Down

Year
Return (percent)

Max Draw-Down (percent)

1980
38.8
10.7
1981
55.8
9.7
1982
16.9
22.2
1983
23.7
18.0
1984
89.1
18.5
1985
62.7
18.4
1986
92.6
15.3
1987
248.1
21.5
1988
22.3
26.9
1989
166.6
15.6
1990
177.0
17.6
1991
102.5
23.1
1992
47.1
21.2
1993
165.2
22.6
1994
60.7
15.2
1995
41.8
22.8
1996
149.2
18.4
1997
6.6
30.6
1998
45.8
31.5
1999
44.3
24.4
2000
43.1
17.8
2001
61.0
18.4
2002
26.4
21.7
2003
4.3
37.8
2004
41.5
24.3
2005
11.1
24.4
2006
40.6
18.5
2007
3.9
35.7
2008
235.2
16.9
2009
1.4
23.8
2010
46.19
13.5
2011
1.7
23.9
2012
-17.9
29.6
2013
-37.7
48.8
Average 54.8 22.5

This example illustrates the power of implementing the money management strategies available to the large-account investor. He can achieve a very high rate of return for a relatively low max annual draw-down. Moreover, he can adjust the percentage of equity risked to either increase his return or lower his draw-down until he achieves a risk/reward scenario suitable to his trading temperament. If, for example, a max draw-down of 38 percent and an average max draw-down of about 24 percent is too high for him, he can lower the amount risked and have lower expected draw-downs. Conversely, if he can stand more risk, he can up the amount risked and achieve a higher return.

YOU'LL LOVE THE DIVERSITY AND EASE OF TRADING

• Fully Disclosed. The trading logic is fully disclosed so you'll know exactly why each trade is being placed. This is not a "black-box" system which frustrates traders because they don't know how they work.

•  End-of Day System. You don't have to sit in front of a computer to trade THE ABERRATION STRATEGY. It uses daily bar data for trading decisions. You will know before the open of trading whether there is an order that day. You can place all orders before the market opens. Once the orders have been placed, you don't need to monitor the market the rest of the day.

•  Portfolios for any account size. You won't have to do complicated analysis to determine what to trade. We provide recommended portfolios for any account size, so you can start trading right away.

•  Money Management. Our systems have easy to understand money management rules. You will know exactly what to trade, and in what size each day.

Easy to use software. You will have Windows-based software to generate daily signals and to back-test performance. You can gain confidence in the robustness of the system by doing your own back-testing with data we provide. For on-going trading signals, you can subscribe to a low-cost data vendor and get the trading signals in less than 5 minutes. You don't have to use the software if you don't want. 

•  Trade Station Code. For those who use Trade Station for trading and back-testing, we have open source code for that platform.

YOU CAN HAVE AN EXPERT TRADE THE SYSTEM FOR YOU

In my seminars, I stress that most traders fail due to an inability to execute their strategy as they planned. Even with great systems, traders throw away their edge by letting their emotions over-rule their plan. I have a network of brokers who will execute the systems for you at a rate only slightly above the discount rate. These brokers are all highly experienced with ABERRATION and routinely it for clients like you. So if you purchase ABERRATION, you can open an account with one of those brokers and have confidence that they are being traded expertly by a registered professional.

GUARANTEE

I don't guarantee future performance. I'm registered with the Commodity Futures Trading Commission, CFTC, as a Commodity Trading Adviser, CTA, and am prohibited from doing so. In practice, I wouldn't guarantee future performance anyway. There's no way to be sure a strategy will perform indefinitely into the future. What I can, and do, guarantee is that the past performance claims I make for THE ABERRATION STRATEGY are true. Every number on this website comes from a computer using CSI end-of-day data. If you purchase the system your numbers with CSI data will match mine, that's the guarantee. If they don't, I'll give you your money back.

I've sold Aberration, and now THE ABERRATION STRATEGY, to the public for over 20 years. In all that time no-one has ever claimed my numbers are "fudged" or inaccurate.

WHAT YOU GET

When you purchase THE ABERRATION STRATEGY you will receive:

•  A detailed trading manual which fully discloses the logic, shows past performance on individual commodities and portfolios, explains the money management used for both small- and large-account tradfers, and covers software installation and operation.

• Easy-to-use Windows-based software that lets you back-test commodity and portfolio performance, perform money management analyses, and generate daily trading signals when mated with end-of-day data.

•  Trade Station code (open code).

•  Full Support. We will answer trading questions and technically support the software.

PRICE

THE ABERRATION STRATEGY can be purchased for the reasonable price of $1,695. You can order by credit card through a secure server by clicking the following link. Or, you can send a check to:

TradeSystem, Inc.

11276 Ballantyne Crossing Ave.

Charlotte, NC 28277

For questions, feel free to call us at our toll-free number: 800-372-3942

 

 
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