Market Grades
As systems traders, we spend a great deal of time evaluating and monitoring our systems. It’s a constant process that has our computers running 24/7/365. Our testing includes not only the active systems we post on our site, but our entire arsenal of systems. This amounts to 2,268 tests, as we monitor nine systems on seven time frames across 36 markets. It’s a never-ending process because once a system is complete, it’s placed back into the mix for re-testing in the future.
A by-product of all this testing has been the accumulation of a huge database of trading results for the markets we track. Each market has been graded based on its performance over various trading styles (trend, momentum and pattern) and time frames (30/45/60/90/120/daily/weekly bars). Markets have been judged on profitability, performance consistency and various risk metrics, resulting in a trading grade of A, B, C, D or F.
A final grade of “A” does not suggest that the market is a foolproof, can’t lose, guarantee moneymaker … NO, far from it. It simply reflects that the market is receptive to systematic trading and that the trading results have been relatively consistent and stable over time.
The results for 23 markets across eight separate sectors are shown below.
Our trading systems go through an exhaustive stress testing process; hence, our market grades will adjust slowly over time. For the most part however, the grades we see today will provide an accurate assessment of trade stability well into the foreseeable future.
Trade wisely … select a market that is receptive to trading based on stability rather than unsustainable short-term performance.