About this strategy
The DeltaHedge Daily Trading Recommendation Service was developed with the assumption that the market can do virtually ANYTHING on ANY GIVEN DAY...and that NO ONE (not even the "experts") can predict the future. My grandfather had a favorite saying: "If I knew where I was going to die, I wouldnt go there," and, in a sense, this is the over-riding philosophy upon which this system is modeled. The selected futures contracts we will be recommending are: Cocoa, Cotton, Wheat, Soybeans, Soybean Meal and Soybean Oil. After 7:00 PM EST each night, but before the first commoditys main trading session open at 8:00 AM EST, we will post recommendations to enter two contrary futures Stop orders: to BOTH Buy AND Sell the nearby month futures contracts at different levels. Signals should be entered as close to recommendation time as possible, or at least by the individual commodities main trading session opens. All open positions or pending orders should be closed 5 minutes before the individual commodities main trading session closes to make sure we exit all trades by the end of the day. On days when we will be closed and not posting trades, we will notify you well in advance. The obvious question is: If the pending orders placed are contrary, dont the profits/losses cancel one-another? The answer is that the futures markets we have selected for DeltaHedge are some of the MOST DIRECTIONAL (per day) and have some of the MOST CONSTANT VOLATILITIES that we have found among all the futures instruments. On the vast majority of days, only one of the orders (Buy OR Sell) will trigger, and the other order will not. Additionally, the orders triggered to enter are at a certain level away from the Open. The unique feature of the system lies in exactly where these levels are placed. The levels at which we enter each side is essentially just past the "noise" levels of the individual markets. These "noise" levels have been calculated using a complex series of mathematical algorithms that have been determined based on statistics of how each of the selected futures have traded, over time. These levels change on a daily basis. The other essential feature which we made mandatory for the system is that it be LOW MAINTENANCE, meaning one should be able to enter the trades easily at the market opens and not have to worry or touch them until the end of the day when it comes time to close open positions and still-pending orders. THE BOTTOM LINE OF WHAT TO EXPECT FROM PERFORMANCE: With this system, we are not trying to get rich quick. We are looking to make a MODEST OVERALL DAILY PROFIT, on a CONSISTENT DAILY BASIS, with LOW OVERALL DRAWDOWN. We are trading only 1 contract per commodity. As profits grow, you may decide to GRADUALLY and INCREMENTALLY increase the number of positions traded in order to pyramid profits, but ONLY if you achieve a comfortable account balance to support this with proper money management, which is also key. Most futures brokerages require the margin minimums ($2,660 per Cocoa futures contract, $3,780 per Coffee futures contract, $1,820 per Cotton futures contract, $3,375 per Wheat futures contract, $4,725 per Soybeans futures contract, $2,700 per Soybean Meal futures contract and $2,025 per Soybean Oil futures contract). Most brokerages require only half the margin minimums if positions are not held overnight; ours are not. Additionally, since we place two opposing orders, the margin requirements at the time the pending orders are placed is nearly $0, but since one side (Long OR Short) is usually taken on a given day, we recommend you should have at least the day-trading margin minimums ($10,542.50 per all 7 futures contracts) plus at least $10,000 per all 7 futures contracts traded to allow for maximum drawdown over a few days so you will not be "out of the game" if/when this occurs = at LEAST $20,542.50 recommended in your account to trade 1 contract lots. Most successful trades achieve a profit of ~$500-$1,000 (but occasionally much more). On days in which a market moves very little (no weather reports, news, or events), no trades trigger, and our pending orders automatically expire. The worst possibility on a given day is one in which a market moves and triggers a Long or Short trade, reverses hard, and also triggers the opposing Long or Short trade. This happens relatively rarely, and in this case, we will have to absorb a loss equal ONLY to the spread between the opposing trades, usually ~$250-$500. In the world of futures trading, this is a relatively minor loss during a very volatile trading environment. The system has proven to be very profitable with very low drawdown in historical trading for all the back years tested (typically generating ~$100,000+ per all 7 futures contracts, per year, excluding commissions) as well as in real trading in 2006, 2007, 2008 and so far in 2009. We invite you to enjoy the recommendations and to paper trade the system yourself for at least the 7-day Free Trial period to understand its potential. If you like the service, we welcome you to join our family of paid subscribers. We believe you will be able to cover our modest monthly fee with your average daily profit within a few days each month. Happy trading!
Past results are not necessarily indicative of future results.
These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.