Trading the System

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.”

Aberration is easy to trade. It uses daily data -- open, high, low, and close -- for calculations. Intra day data is not required. Additionally, you don't have to monitor the markets during the day. After you've obtained the previous day's data (you can download from an end-of-day vendor or manually update the files provided with the system), the software will check each commodity to find out if there are any entries or exits for today. If so, you either buy or sell "at the market" on the open. There are no stop orders for market entry. After order placement, you can go about your daily activities without watching the markets.

System Guarantee

If you've bought systems before, you know that advertising promises were not always true. Profit claims were exaggerated, and you felt "ripped off." The guarantee that comes with this system is that if the marketing material is not true, in any way, you can have your money back. In over six years of dealing with the public, no-one has ever claimed that performance was misrepresented. When you buy a system, you are buying past performance in the expectation that future performance will, on average, be the same. Aberration's past performance is fairly documented; that is the guarantee.

Functional Software Will Have You Up and
Running Quickly

Aberration is a fully disclosed system that comes with Windows based software that provides you trading signals as well as allowing you to do money management studies. Commodities can be individually tested with output that includes insightful graphs such as this.

Or the small-account investor can choose to do portfolio analysis. If for instance, the small-account trader wanted to test the "Starter Portfolio" with a maximum risk threshold of $3,000, and trading a one-lot per signal, the software would compute the results of this strategy and output the equity curve shown below.

Further, he could generate "Start-Trade" statistics for the strategy and see the probability distributions shown below.

This graph shows the risk and reward associated with starting to trade the Starter Portfolio. On the risk side, the Start-Trade Drawdown distribution shows the probability that the trading account will dip by a given amount. For example, there is a 70 percent probability the account will diminish by $3,000 or less when trading commences. Conversely, the trader has a 30 percent probability of seeing his account dip between $3,000 to the max start-trade drawdown of $9,863. On the reward side, the trader has a 55 percent chance of gaining $14,000 or more in his first year of trading.

About Risk

Many traders build their trading plan based on perceived future profits. They look at past profit per trade, or average monthly profits, or average yearly profits when deciding their trading account funding level and the mix of commodities to be traded. This approach neglects the most important decision a trader should address: what level of risk are they willing to undertake?

When building a trading plan, risk should be addressed first, and the profit that may accrue as a result of that risk level becomes a by-product. A trader should realistically decide the amount, or percentage of account equity he/she is willing to risk before terminating trading and build a plan within those constraints. Traders with a small account should realize that there is a very real probability that they will not succeed and try and determine what the probability of success with that account size is. They can then decide if they are willing to take a 50-, 60-, or whatever-percent chance with those funds. This caution is applicable to Aberration and every other trading system/methodology ever developed, because they all have losing trades, and losing periods.

You Trade with Confidence

You can only trade confidently if you know why your system works, and why it is likely to work in the future. Aberration is a fully disclosed system that works on statistically significant commodity price movements. When you see the logic, I'm sure you'll join other users who've concurred that the method is in keeping with sound market principles and is bound to catch the big price movements. Additionally, I think you'll concur that the methodology will work in the future if the market structure remains as it is.