Hello gents and ladies: It is time to weigh in again on the subject of my (seemingly ever-evolving) managing approach to achieve an <b><i>above-average, longer-term annual average</i></b>. To do this one must have a routine method to accomplish this that stands the test of time. Hence compounding (my litmus) >50% per year - and we all know what kind of growth that can cause in an account. SO, my web-based training services have accomplished this routine for nearly 10 years with covered calls. the key has been to side-step corrections and bear markets, while ramping up gains very near each Stock Market bottom. These calls have been routine for a very long while as seen from my Performance Charts. Selling calls on high growth companies during optimal periods has consistently outperformed any longer-term fund that I have seen. Elite Traders have pointed out to achieve capital backing one must additionally invest for gains during down trends and not just stay in cash. and that Collective2.com would be a good start to proving out my approaches by an independent review. Now a recent email sent to my free newsletter recipients: With Each New Year Come New Successes Greetings Prospective Members, By now you should be aware of the value provided by XXXXXXXXXXXXXX.com. Yes, the past couple of years may have seemed to come up short, as many high-flying funds flourished. However, many of those funds have now suddenly come crashing back down - while we wait patiently holding fast to our proven stop-loss methods! It took nearly 8 months of practically no gains before we were able to engage our funds within a few days of the summer of 2006's market correction bottom. By year-end we posted a solid 35% annual return and a heady out-performance versus the averages! Even more discipline was required in 2007 as not one, but three market corrections were very short-lived and therefore unable to truly work off the market's froth. Nearly zero gains were again accomplished for most of the entire year, before we were able to close 2007 with a respectable 12% return. With 2008 unfolding, the value of at least retaining past gains has become starkly apparent as the indexes have now worked there way back to the March 2007 correction lows along with unraveling of the last remaining stalwarts of the previous market rally: GOOG, AAPL, BIDU, RIMM, MA, AMZN and ISRG! Our Covered Call Funds have remained in cash in 2008 to once again attain the wide divergence with the annual return from the major averages WE EXPECT TO ACHIEVE WITHIN EACH GIVEN YEAR. This past year we had to actually enter an extra couple of weeks into the new year for this to actually be seen from our current performance charts! So we remain in our "wait-and-see" mode as we now look to target the next market bottom as we always do with routine precision. Only then can we be assured that our heady AVERAGE annual performance of 50%+ gains will continue to be achieved! That being said, it is a no-brainer for you to learn from one of the best performing investment funds on the planet! Not only will you learn how to target opportune market trends with which to maximize your investment return with covered calls - but you will gain valuable experience with our hands-on training on how you can retain those gains in the event the market turns against you! Yes, many flash-in-the-pan outfits have sprouted up of late - and always do in a late-stage bull market, but none that have any real lasting value! WON'T YOU COME JOIN US IN THE NEW YEAR? If you SIGNUP NOW, we can offer you a great reduction to our already low 6-month subscription fee! Contact us today and take advantage of all the benefits we afford our members! So we invite you to JOIN IN OUR SUCCESSES as we once again successfully side-stepped another major market correction and to share with us our pending good fortune! Fast and furious gains are likely to unfold with covered calls during the next market rally! Our proven methods have withstood the test of time - and 50%+ average annual gains is nothing to balk at! NO TIME LIKE THE PRESENT to jump on board with XXXXXXXXXXXXXX.com. So what are you waiting for? Sign Up TODAY! Call (cell) XXX.XXX.XXXX or email me direct at gilbert.arevalo@XXXXXXXXXXXXXX.com and I'll send you a PayPal link with our discounted 6-month rate: $XXX.XX "Classic" Subscription/ $XXX.XX "Pro" Subscription. Start TODAY and learn how to navigate these treacherous markets in your sleep. There is no better-performing fund that we are aware of! Simply follow along with each covered call trade, and in no time you will be managing your investments like a pro. Imagine what you could've learned and earned had you been following along all these years! Well, it's not too late! What you take from our methods is the ability to replicate these results in your account for life - BUT HURRY, you must act today to take advantage of our DISCOUNT RATE as this offer will end soon! Sincerely, Mr. Gilbert J. Arevalo President & Chief Hedge Fund Strategist XXXXXXX Capital Management www.XXXXXXXXXXXXXX.com Cell: XXX.XXX.XXXX Note: BUSINESS INFO deleted per ET policy
So why continue to dribble on about all this? Well almost a year has gone by and proven stop-loss methods developed during the Asian contagion in late-fall of 1998 have been dictating to me the necessity to cut losses short, let correction work themselves out and reap the rewards thereof. It has been most difficult as the Fed-enabled gains of 2007 along with bull-happy investors in a handful (re: StockTrdr) of hopefuls have led us to the present - where government is finally realizing that markets need to work things out on there own. - IN OTHER WORDS it took a bit more than the usual time, but everything is now in the tank AS THEY SHOULD BE. Once the froth is entirely worked out my covered call funds will once again move back into the forefront and while the bear is alive, my new futures-traded fund (see below) should additionally capitalize with the down trend. Much time and effort has gone by with (seemingly) little results. My first C2 fund (chronicled here) struggled with the market volatility and my newly implemented short plays. After 5 months of hard work and quite a few trades, my fund finally began gaining traction and from what I could see was indeed targeted to increase my annual average to about 75% per annum (vs 50% using strictly covered calls). Then I got a brain fart after delving into the use of futures instruments (ES/NQ/ER2/YM/EMD). Why not allocate a relatively small amount of margin and go with my near- deadon market direction calls - both long and short and avoid the headaches? Unfortunately, their misuse - overleverage - in one fell swoop blew out that first C2 account that was up for renewal. (See tail end of 1st and 4th pic below when started using futures in account). So I started a strictly futures traded account and expect this to prove out to the tune of in excess of 100% per annum that would grow exponentially and be VERY easy to manage. I will keep you all updated on this since this thread has about 35,000 views. A second account with a higher use of leverage was blown out as a strict adherence to my leverage rules was compromised - but if the basic account proves out (using about 15% of available margin) increased gains are reasonable to deduce with a higher use of margin. Yes all this has taken some 7-8 months to unfold and actual results may have erased any and all of my credibility, but IF in another 7-8 months expected results unfold. . .well we can talk about that then! PaySen$e FYI Here is a review of the results to-date - First C2 "Covered Call" fund that also implemented ultra-conservative index spread plays to capitalize on downtrends. it essentially tracked my web-published results in a strictly covered call fund with said annual increase beginning to show. My graphical conversion of above C2 fund. . . and vs the Nasdaq. and said misuse (over-leveraged blowout) of futures margin use. Current Fund - Higher-margin blowout (hadn't quite setup margin rules and other tests) ...and the reference url: http://www.elitetrader.com/vb/showthread.php?s=&threadid=94764&perpage=6&pagenumber=64 Also keep in mind that if my goal can be accomplished... Meanwhile, kicking back in cash continues to bode well for subscribers to my covered call training services. A sharp divergence from my C2 funds but you'll have to trust me on this, for now. And I know, if I had stayed with my original plan with my first fund, by now I'd be gaining auto-traders. But that is the way it goes with brain farts AND YES, I know many here have perfected trading methods to extract gains each year with each and all of the markets moves. I'm still thinking that a simple routine to AVERAGE 50-100% per year on an entire account would be king - as opposed to extracting say 50k on a $500,000 account each year for side cash - without a bold compounding move that could yield 10 to 100's of millions in less than 10 years.
KC Partners 3 Systems on Collective2: System Details: Kingdom Capital Covered Call Fund 2007 Jun (8.3%) Jul (8.8%) Aug +8.7% Sep +6.4% Oct (3.5%) Nov (37.9%) System Details: KC Partners 2007 Nov (3.5%) Dec (13.8%) 2008 Jan (6.6%) Feb +12.3% System Details: KC Elite 2007 Dec (39.6%) 2008 Jan (86.4%) Feb (66.2%)
How'd I know this was coming next? In fact each time I think I might post I encounter a new "lesson". Let's hope there'll be significant none more. gA
Kingdom Capital Covered Call Fund Compound Annual % -49% over 283 days Max Drawdown 51.36% (20071126 to 20071128) 29594253 (was called KC Elite) Compound Annual % -100% over 87 days Max Drawdown 133.54% (20080216 to 20080217) KC Elite (was KC Partners) Compound Annual % -94.1% over 100 days Max Drawdown 69.11% (20080123 to 20080307) KC Partners Compound Annual % -99.8% over 13 days Max Drawdown 23.82% (20080227 to 20080307) http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=29594253 http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=26557785 http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=29417555 http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=30763562 I really like how you shuffle the names around after the original KC Elite crashed and burned. I also see you are undaunted and have created 3 more C2 systems in the last week. Maybe you should just have two mirrored systems(take opposite positions in each) that way you have a chance of having at least one "winning" system on C2?
You mean like the combined performance of an equally-weighted (or not) portfolio of all C2 systems? Sure. Go to the Grid - I prefer the "old version" (link at the top right)... copy & paste (repeatedly) everything to Excel... analyze all you want. (There is a "Show Combined Portfolio" button, but it's limited to 4 systems at once.) However, I can't imagine why that exercise would be marginally useful. For one thing, you realize that that's going to suffer from huge survivor bias - 582 currently active systems out of 5,263 since C2's inception. That fraction in itself probably tells you much of what you want to know. As if that weren't enough, second, the systems' ages range from days to years. Third, their money management is obviously all over the place, from way sub-optimal to (far more common) way too extreme.
If you could walk through year by year and see the death rate of systems in each period, that might be an insightful exercise.
Yes, having easier, bulk access to C2 historical data could enable all sorts of interesting analyses. You used to be able to see inactive, discontinued systems under "System Finder," but no longer. Don't know the C2 systems death rate, although at least we can estimate, based on the above figures, that the C2 annual systems turnover is greater than 200%. Not really surprising, considering that lots of system vendors seem to treat the platform as a cheap DOTM call option.
Where is all the returns you were talking about at the beginning of this thread? I check at equity curve, and you are still flat. So people are right not to give their money to others to manage it. I have been trading the same market you have been trading, and I made 50% over the last 6 months. During the same time, people who have done well to invest money in buying a loaf of pita breads (look at the return on pita breads in this URL). http://www.thelogicgirl.com/2008/03/pita-bread-inflation-signal.html