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TRADING B-MASTER WITH ABERRATION THE GLOBAL PORTFOLIO
The Aberration Global Portfolio is suitable for accounts greater than
$100,000. The portfolio is traded with two money-manager strategies: a fixed
percent of equity is risked on each trade (for this example, 2 percent is used) and
profit-taking is used on the multiple lot trades to smooth the equity return. The
Global Portfolio contains the following commodities: Corn, Kansas City Wheat, Bean
Oil, Live Cattle, Cotton, Sugar, Lumber, Coffee, Palladium, London Aluminum Alloy,
London Copper, London Nickel, Crude Oil, Natural Gas, Propane, Heating Oil, Unleaded
Gas, the Dollar Index, Japanese Yen, Swiss Franc, British Pound, Euro-Currency,
Mexican Peso, Canadian Dollar, T-Notes, the Euro-Bund, Five Year Notes, Two Year
Notes, Eurodollar, the Australian Bond, British Long Gilt, Muni-Bond, and the
Nikkei stock index. The following breakout compares the Aberration Global
Portfolio performance with a 2 percent risk per trade, and Aberration, less
the five US interest rate futures, and B-Master trading the 10-year
note, Muni-bond, 30-year bond, five-year note and two-year note with a 2 percent
risk per trade. Note that return and drawdown are expressed in percentage terms.
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Mid-Size Portfolio |
Mid-Size Plus B-Master |
| Year | Max Profit | Max Drawdown | Max Profit | Max Drawdown |
| 1980 | 43.3 | 6.4 | 42.8 | 6.0 |
| 1981 | 71.7 | 6.0 | 67.9 | 5.8 |
| 1982 | 55.7 | 14.0 | 46.4 | 12.3 |
| 1983 | 24.2 | 16.5 | 24.4 | 14.4 |
| 1984 | 52.1 | 14.8 | 47.1 | 15.7 |
| 1985 | 99.6 | 13.5 | 123.0 | 11.0 |
| 1986 | 43.8 | 14.7 | 49.9 | 15.1 |
| 1987 | 132.1 | 18.0 | 172.7 | 11.2 |
| 1988 | 43.6 | 10.1 | 69.8 | 13.2 |
| 1989 | 21.3 | 18.3 | 34.4 | 15.7 |
| 1990 | 155.0 | 9.5 | 156.8 | 6.8 |
| 1991 | 98.6 | 17.0 | 113.0 | 16.0 |
| 1992 | 41.4 | 27.6 | 35.6 | 25.9 |
| 1993 | 76.0 | 12.0 | 100.7 | 13.3 |
| 1994 | 149.9 | 11.5 | 104.7 | 11.6 |
| 1995 | 108.5 | 13.5 | 88.2 | 16.4 |
| 1996 | 42.3 | 21.5 | 103.2 | 15.4 |
| 1997 | 44.9 | 16.8 | 96.2 | 12.5 |
| 1998 | 104.8 | 21.3 | 124.0 | 16.3 |
| 1999 | 100.7 | 20.6 | 160.2 | 14.0 |
| 2000 | 57.2 | 24.2 | 100.2 | 13.1 |
| 2001 | 23.0 | 20.3 | 29.7 | 18.3 |
| 2002 | 37.8 | 21.1 | 16.9 | 20.3 |
| 2003 | -36.4 | 60.0 | 4.6 | 43.4 |
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| Global Port. Profit Per Year: | 66.7 % |
| Global Port. Avg. Max Drawdown Per Year: | 18.0 % |
| Global + B-Master Profit Per Year: | 80.2 % |
| Global + B-Master Avg. Max Drawdown Per Year: | 15.3 % |
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These results show that by trading B-Master system in conjunction
with the Aberration Global Portfolio, profitability is increased from 66.7
to 80.2 percent per year, (more than a 20 percent increase), with a 15 percent decrease
in average drawdown (from 18.0 percent to 15.3).
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