It trades high volume etfs and stocks primarily from S&P 100, Nasdaq 100, and Dow 30. Positions are single entry, 10% of trading capital, held at least 1 trading day and no more than 10 trading days. Profit targets vary per position from 1-10 pct and are generated based on historical volatility of the stock or etf and the overall market trend. The strategy tends to outperform during high volatilty periods and remain relatively flat during low volatility.

Trade signals are generated nightly around 7pm and can range in number from 0 to 150+ and average about 50 per night.

Manually trading through IB TWS BasketTrader is the most cost effective way to trade this system. Orders can be received in csv format and uploaded to TWS BasketTrader daily. Please email for step by step instructions.

Inverterate's core objective is to minimize risk and maximize return. Fidelity Wealth Lab is used to maintain the strategies, generate orders and perform backtesting. Backtesting results over a 10 year period boast a historical exposure of <25%, a historical maximum drawdown of less than 8% and historical annualized returns of 49%. Enclosed are backtesting results:

http://jhltrading.onlinewebshop.net/index.html

Past Performance is No Guarantee of Future Results.

**************Note on Margin and Collective2******************
Inverterate does NOT use margin, however, there is one scenario specific to Collective2 where margin might be used briefly. It seems to be a timing issue and it will only occur at the market open of a particularly weak trading day.

Collective2 allows an unlimited number of orders as long as there is at least $1 of buying power available. Collective2 will execute any order that opens below the entry price. After executing these orders it will perform a buying power check. If the buying power is exceeded, Collective2 will reverse orders randomly in a margin call until the buying power is back in line. This scenario might happen once every 2 or 3 months.

The bottom line is the only sure way not to use margin in Collective2 is to trade on a cash account with no margin.

FYI, as for the 6% drawdown in June, I had some issues setting up the system. First I did not realize Collective2 provides 100% margin as a default to all new systems. This caused my system to open up 200% worth of starting capital in positions in one day during the big June down turn. Once I found out I exited immediately and started from scratch. Hence the big draw down.

*******************FEE INCREASE NOTICE*********************
Beginning June 30th 2011, the subscription fee will increase from $5 per quarter if profitable to $5 per month if profitable.