DipBuyer performance mid2007

Discussion in 'Strategy Development' started by maos, Jul 27, 2007.

What is your YTD performance

  1. below 5%

    0 vote(s)
  2. 5 - 10%

    2 vote(s)
  3. 10 - 15%

    0 vote(s)
  4. above 15%

    2 vote(s)
  1. maos


    Hey all of you out there trading dipbuyers...

    I trade a dipbuyer system on US stocks...and here are the YTD results...

    I was up 27% for the year until several days ago... Now I'm up 7%! That's one hefty drawdown for a few days work (this week I lost 49,000$...).

    My main problems this year(which caused drawdowns 10-20%)are:

    1) February-March correction and subprime mortgage breakdown
    I had lot's of positions like AHM,RAS,NFI,NEW...(for e.g. I rode new century(NEW) down from 18$ to 6$ and than sold it contrary to system signals) ---> Drawdown in march +25% ! (took me 3 months to get back on track)

    2) Utility sector correction in June which resulted in +15% drawdown --- But I quickly got out of that drawdown...

    3) July another subprime related correction ---> Current drawdown around 15% (should be around 25% but I blocked trades like AHM,NCT,RAS and CFC this time around! ).


    What I'd like to know is how you who trade dipbuyers performed this year and how you got through the periods I mentioned above.

    P.S. If today markets rebound from yesterday's selloff I should cover at least 30-50% of drawdown, and so far the index futures look good...so maybe YTD performance is a bit misleading...
  2. How does the current drawdown compare to backtesting DDs, e.g. May/June 2006? If it's within historical norms, then there's nothing to worry about.
  3. Don´t worry ! My interpretation of a "bear" market....IMAO!! Markets will have a sharp bounce back.