New Money Management Rules applied from March 2008
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Fixed risk of 30% for every trade. Stop loss order used, governed by current volatilty. Leverage is then applied to normalise risk at 30%.

This money management was used in the original turtle experiment and was said by Curtis Faith to be a large contributor to their success. Further details and examples are given in my forum post on the topic. Please read.

The main benefit is that risk is taken care of whatever the market conditions, and our stop losses are appropriate to the current volatility. Upside is left to play out until the end of the trade, usually 7 days after entry.

System Description
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It is well known that the markets tend to rise around the end of each month and the beginning of the next month. Various theories try to explain this with the most cogent being that money flows into the markets around this time, causing prices to rise. This system uses this phenomenum and only employs capital during the most favourable time-span. Mid month, when historically prices have remained flat is the time when we dont participate in the market.

There are 2 options for subscribing to this system. There is this system which charges $50 per month, but for people who wish to only pay for performance I have the same system under the name er2 pay per +ve trade. Although signals are identical to this system, you will be charged $65 but only for successful signals.

Real world trading of this system is very easy. Just 2 actions required each month, and very little impact from slippage or commissions.

The system is biased on the long side with around 90% of trades going long, with the other trades going short.

Each trade on its own has a 77+% chance of making profit, so in a typical year 9 out of the 12 trades should be profitable.

100% annual success rate - every year of the past 20 has returned profits using this system. The worst yearly performance was up a mere 41%, whilst the best was up 170%.

We use the Russell 2000 index as it is broad based and has no big weightings from individual stocks like the Dow and Nasdaq indices. Having compared the systems performance using the S&P500, NDX100 and also other international indices such as the FTSE100, Nikkei and DAX, the Russell came out on top in terms of overall performance and, more importantantly in my view, stability, with very few large losses.

Yearly back-tested results going back to 1987 show an average yearly gain of 92.5%, which isnt bad given a market exposure of only 86 days a year!

My system will generate its signal towards the end of each month. Subscribers will be emailed a day or so prior to the signal date with a heads up suggesting what the signal will be and what amount of leverage the system will use. The signal is intended to be executed as near as possible to the market close on that day. Around 7 trading days later a signal will be sent instructing you to get back to cash.

This system is not a paper only system. I trade this myself with my own money, and that of some friends and colleagues. I have faith that this system will continue to produce good results.