Performance reports for ATR strategy can be misleading, which is why I don’t publish them. One of the main reasons is that most data providers do not provide adequate tick data which is needed for accurate performance reports. While some traders depend on the performance reports to make a decision on buying a strategy or set of indicators they do not understand that the results are often skewed because of a lack of adequate data.
Of course with inadequate data, the results are also inadequate or misleading. While you can optimize the strategy to give great results, and most traders realize after purchasing, that most results are not realized on the live edge because of the same issue (lack of tick data for more than six months). Hence the disclaimer that is required stating that the strategy is hypothetical and not indicative of results on the live edge of the market.
Performance Reports for ATR Strategy – Dow Jones Daily Chart
Since I know that the tick data is only valid for six months, for those wishing to see a performance report, here is the performance report for ATR strategy on the Dow Jones for the last six months — daily chart. The chart below shows every trade generated with the ATR Strategy using no filters. Entry is at the ATR. Exit is either a flip of the ATR or a touch of the Aggressive Stop. Simple, measurable results.
The trades entered were:
Performance Reports for ATR Strategy from Chart Above:
Total Trades: 15
Total Winners: 6
Total Losers: 8
Total Profit/Loss: + 789 Points, with one outstanding trade that is currently in the money even if stopped out with the aggressive stop
Largest Losing Trade: -284 Points
Largest Winning Trade: +1158 Points
Actual Risk to Reward Ratio (Total Wins/Total Losses): 1 to 1.66, excluding open position
Current Open Position: +1056 Points (not included in totals above)
For those that want my personal trading performance reports, I do not give them out. First, I am not a CTA (Certified Trading Advisor) nor do I want to be. I only trade my personal accounts. In order to provide my personal trading accounts, they would need to be certified by a CPA (Certified Public Accountant) using the GAP accounting procedure every three months and I would need to register as a CTA, which I have no interest in doing.
Even if I did provide them, my trading methodology (strategies included) are discretionary. That means the trader has to analyze the markets, charts, and indicators and, only when certain conditions are met, enter. Then they must use risk to reward, money management and an exit strategy to exit their trade. That means a trader that purchases my indicators and/or strategy has to dedicate the hours needed to learn the methodology. A performance report does nothing for this type of trading because every trader will be different in where they are in their trading career. With discretionary trading, performance reports are extremely misleading. Unless that person is actually trading for you, then their trading performance report is nothing more than a pie in the sky, giving you hopes of adding a set of indicators to your chart that will enable you to replicate their results. Discretionary trading does not work that way. Discretionary trading means traders take the time to learn charts, indicators, develop a plan, then overcome the psychology issues they are facing (all traders will have psychological issues to overcome), and then eventually become successful. It is their persistence that enables them to become successful more than anything else.