CISCO


   

CISCO Futures
1-303-306-1521 1-800 800 7227 Fax 1-303-306-1572
http://www.cisco-futures.com
dljones@cisco-futures.com




Background

Drawdown Studies with the Advice Engine Select Data


CISCO Futures© 2001, 2006


Drawdown
All trading methods experience gains and losses. Any loss is a 'drawdown' to the account. The bigger the loss and the longer the string of net losses the larger the drawdown. Minimizing drawdown is a reasonable goal of all traders. Probably most effort is put on trade selection (that 'model' that works). Markets are complex and losses are inevitable. Experience teaches that loss management is the most important factor in trading. Some parts of account management are relatively easy to define: avoiding overtrading and over leveraging an account. More difficult is risk management of ongoing trades. Certain rules are popular (buy two and sell out the first at a propitious time, or enter with three and follow a scheme to exit and/or reenter, add a put or call to protect a profit, etc., etc.). Such rules begs the question, relying on a mechanical methodology in lieu of being guided by the market itself.

It is impossible to know exactly what is coming in a complex market. It is possible to know where the market is now (it's condition), what it is doing and estimate the chances of a change of condition. Judgement, gained by experience and market knowledge based on current observation is the key to decision making. In trading it comes down to risk decisions. How much should I risk on this trade at this point in time? Drawdown analysis is a market connected way to such risk analysis. The best starting condition is a balanced market. In a balance, the Overlay Demand Curve is stable, showing well defined upper and lower balance limits. (It is assumed in the following that you understand the Overlay Demand Curve. For a refresher, go to Overlay Demand Curve Background.)

The balance region gives the current value, defined by the market itself. For value to change price must exceed the balance limit. Consequently, you know that price outside the balance is an alert for a change in market condition from balance to trend. Again, experience shows that breakouts from balance often return to balance, breakouts being trial baloons of a sort. As this is being written at 10:45 AM, of the 15 futures on the Advice Engine Marquee, five have broken out and four of them have returned to balance. The SP moved out $600 and returned (offering a nice play on the return). (Note: we are reporting on the SP. To convert to the emini ES (UU on CISCO) simply divide any dollar amounts by 5. SP and UU must track closely because of arbitrage.)

The Methodology
The Advice Engine Report Part 1 contains all futures in the CISCO list that are in balance at the end of day (there are typically 125 such balances). There are four balance time periods 5, 10, 15 and 20 day Overlays. For a 10 day balance to be posted the 5 day must also be in balance. The 15 day requires confirming 5 and 10 day balances. And so on for the 20 day balance. 5 day balances alone are not listed in the Report. Consequently, the 10 day balance is the shortest one confirmed (by the 5 day). A subsection of Part 1 is the Todays Select Trades table. Select trades are those in Part 1 that are deemed to have exceptional Potential. The following day those Select Trades that broke out, along with their Potential are Part 2 of the Report. Potential is defined as the extreme price reached after breakout. For the trader with perfect timing, Potential and gross gain is synonomous. Thus Potential is an ideal that can be used to measure Opportunity.

CISCO maintains a breakout database with breakout price and time, breakout direction, risk (the Octant), high price and time, low price and time and last price (close or effective close) and time. In the drawdown methodology discussed here it is assumed that the market moves smoothly from breakout to high or low (whichever comes first) and then to the second extreme. The low level trading model assumes entry at breakout and then a trailing stop of the risk (an Octant modified by the percentage selected). For a long entry followed first by the high, the Potential is the high less the entry price. If the low comes first and the trailing stop is hit, the Potential is the low less the stop. The assumption of smooth moves would be unsatisfactory for an actual trading model but is adequate for mapping the general path and variations of the market.

Example (Data available approximately 2100h Chicago time)
In the 100% Octant table below the Potl posted is -108 for 050128.
On that day the risk (R) is 238 ($1,190 for SP, $238 for ES/UU)
Breakout Short came at 10:19 at 116750
Entry stop is 116750 + 238 = 116988
The low of the day occurred at 10:20, price = 116620
Resetting the stop: stop = 116620 + 238 = 116858
The high of the day is 117500 at 15:14
As the market rose it passed through 116858, exiting the trade
Loss = 116750 - 116858 = -108

Application of Drawdown (Select) Analysis
The drawdown question is really one of "which stop is best". Best stop can be measured either by return (averaged over some time period) or by the ratio Reward divided by Risk (R/R). Risk is defined in Overlay analyses as one Octant, which is one-eighth the balance upper limit - lower limit range. The Octant is always related closely to the market since market conditions determine the balance range. Further, the Octant is merely the starting place. In the example below for SP the best results came for a stop that was either 60 percent or 80 percent of an Octant, depending on the chosen parameter (return per trade or reward to risk ratio). The procedure to find the exit point is a simple trailing stop, as shown in the example above. It is assumed that a trade is made at breakout and the market's movement is followed tick by tick.

This drawdown procedure relies on having enough market activity (breakouts) to form valid averages (around ten cases). In the sample runs below for SP, there were 68 completed trades for 2005. This broke down to 12 for quarter 1, 12 for quarter 2, 28 for quarter 3 and 16 for quarter 4. So, for 2005, the data would support studies on a quarterly basis. Each market will be different, but the ease of accessing the data makes a search easy to do. You can follow a market through a variety of conditions, gaining an insight on how that market reacts. You can know which of the historical conditions most fit the current, what risk is, on average, the best for today.


Sample Data You will be asked to input:


Commodity Name (from a list): e.g. SP

Delivery: e.g. 0603 (Mar 2006) or 0000 for all deliveries in the time range chosen

Octant Range: e.g. 50 specifies range 50 to 150 % of the Octant

Steps in Octant Range: e.g 2 ==> 50, 75, 100, 125, 150 % of the Octant

Date Range: e.g. 060103 and 060331

Output List Buttons
    STATISTICS ONLY
    ALL ENTRIES

All Research Results are in Trading Fractions.


Select Table Drawdown

Input:
Commodity
Delivery (or all)
Octant Percentage
Start Date
End Date
Report Type: Detail or Summary
  Detail: lists each trade (breakout)
  Summary: One line summary of gains, losses and Reward/Risk ratio
Username and Password


There are six data runs below, SP for all of 2005, with two reports
for each run. The first run is for a stop 20% of the Octant, the next 
for 40% and on up through 120%. To convert to the emini SP divide the
Risk, Gain and Sum columns by 5.

A (hand) tally of the runs shows:

  % of Octant   Stop Size         Ave Risk  Ave Potl  R/R (Gain/Risk)
         20     Very, Very Small        50       150    3.00
         40     Very Small             100       157    1,57
         60     Medium                 151       170    1.13
         80     Medium to Large        201       162    0.81
        100     Large                  252       127    0.50
        120     Very Large             302       116    0.38
  
Potl is the maximum possible, the highest (or lowest) price after breakout. This
is the Potential of the Advice Engine discussions. It is the holy grail of the
trader, the unattainable. But it is a valid measuring point for comparisons and is
used as such here.
You are interested in two key measures: Average Risk (some fraction of the Octant) and the Average Potential. Research values, the Reward/Risk ratio, are dependent on both. In the case of the very, very small risk (20% of the Octant) the average trade may be often stopped out by market noise, the volatility. The won/loss ratio will suffer and one's real world trading can be plagued by many small losses. Even though the R/R ratio may be large, that can be a mirage. That is because the Potential is always the same (based on the high (low) of the day) and the small, stopped out trades are small compared to the Potential. But the Potential is not representative of the scale of the trade. At normal risks the Potential is an attainable value. At very low risks chances are much greater of being stopped out before reaching the Potential point by small market fluctuations. The average Potl column above is unusually large for the very, very small risk trades in this case because of the large linear runs in the last quarter of the year.

At the 60 percent level you find the average gain per trade peaks. R/R is a respectable 1.13. And there are 38 wins with 30 losers. The next step, 80 percent of an Octant risk, the R/R is smaller but the average Potential per trade is very nearly as high as for 60 Percent. Here the wins are 40 and losses 28, a decided improvement. You see that deciding just what risk should be taken is not cut and dried. But now you have information upon which to act.

It should be clear from the drawdown studies that a trader can get a good feel for the structure of a market. This study covers only a year. Data is available from 2001 forward. Over time markets wax and wane. Drawdown studies can give you a good feel for both the history and the here and now. For a six year study of SP drawdowns go to: Drawdown Studies for SP.


-----------------------  Data 6 Runs ------------------------------------------------

Very, Very Small Stop (20% of Octant)
 Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050103 - 051231, Percentage of Basic Model Octant =  20
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103     57  121860   234   122063     203      203
  SP 0503 050104     57  119550  1306   118757     793      996
  SP 0503 050112     32  118250   850   118282     -32      964
  SP 0503 050113     37  118000  1429   118037     -37      927
  SP 0503 050118     45  119620  1330   119575     -45      882
  SP 0503 050120     47  117680  1212   117447     233     1115
  SP 0503 050121     52  117540   916   117592     -52     1063
  SP 0503 050128     47  116750  1019   116667      83     1146
  SP 0503 050131     37  118270  1127   118233     -37     1109
  SP 0503 050201     37  118220   713   119123     903     2012
  SP 0503 050211     47  120520  1025   120473     -47     1965
  SP 0503 050222     50  119230  1125   119280     -50     1915
  SP 0503 050304     47  121650   735   121603     -47     1868
  SP 0503 050311     72  119950  1355   119872      78     1946
  SP 0503 050315     73  119910  1450   119840      70     2016
  SP 0503 050316     77  119300   830   119377     -77     1939
  SP 0506 050316     75  120200   640   120275     -75     1864
  SP 0506 050329     62  117280   157   117342     -62     1802
  SP 0506 050407     60  119260  1133   119200     -60     1742
  SP 0506 050414     57  117120   925   115647    1473     3215
  SP 0506 050425     52  116330   909   116548     218     3433
  SP 0509 050502     17  116840   859   116823     -17     3416
  SP 0506 050503     67  116700  1334   116783      83     3499
  SP 0506 050526     30  119820   919   119790     -30     3469
  SP 0506 050601     37  120070   909   120643     573     4042
  SP 0506 050603     47  120680   733   120633     -47     3995
  SP 0506 050607     45  120640   908   120925     285     4280
  SP 0506 050609     35  119170   901   119165       5     4285
  SP 0509 050609     30  119880   830   119660     220     4505
  SP 0509 050610     32  119790  1349   119782       8     4513
  SP 0506 050613     36  120690  1008   120664     -26     4487
  SP 0509 050613     32  121170  1007   121198      28     4515
  SP 0509 050614     35  121170  1258   121315     145     4660
  SP 0506 050616     43  121000   937   121187     187     4847
  SP 0509 050616     42  121460   909   121708     248     5095
  SP 0509 050617     47  121690   418   122040     350     5445
  SP 0509 050622     65  122370   427   122415      45     5490
  SP 0509 050707     46  119270   358   119316     -46     5444
  SP 0509 050708     42  121020  1035   120978     -42     5402
  SP 0509 050720     52  123420  1219   123368     -52     5350
  SP 0509 050721     62  123810   357   124518     708     6058
  SP 0509 050725     50  123900    20   124130     230     6288
  SP 0509 050727     40  123980  1356   123940     -40     6248
  SP 0509 050728     36  124010   536   123974     -36     6212
  SP 0509 050802     50  124720  1449   124670     -50     6162
  SP 0509 050803     50  124720  1124   124790      70     6232
  SP 0509 050805     45  122930  1027   122795     135     6367
  SP 0509 050808     45  122990   945   123035     -45     6322
  SP 0509 050816     58  122430  1320   122488     -58     6264
  SP 0509 050818     58  122040   229   121768     272     6536
  SP 0509 050822     55  121830  1212   121885     -55     6481
  SP 0509 050831     32  121570  1357   121538     -32     6449
  SP 0509 050914     32  122860  1320   122892     -32     6417
  SP 0512 050914     32  123470  1318   123502     -32     6385
  SP 0512 050920     41  123100  1347   123141     -41     6344
  SP 0512 050929     40  122920  1230   122880     -40     6304
  SP 0512 051024     67  120020  1442   119953     -67     6237
  SP 0512 051026     75  120310   515   120625     315     6552
  SP 0603 051031     55  121200   830   121720     520     7072
  SP 0512 051031     67  120510   621   121383     873     7945
  SP 0512 051102     82  121120   946   121770     650     8595
  SP 0512 051107    105  122620  1317   122515    -105     8490
  SP 0512 051109    107  122750  1124   122843      93     8583
  SP 0512 051110     60  122820  1243   122760     -60     8523
  SP 0512 051117     55  124050  1311   124480     430     8953
  SP 0603 051206     22  127630   832   128258     628     9581
  SP 0512 051206     51  127110  1054   127369     259     9840
  SP 0603 051207     36  126600  1228   126236     364    10204

 Number Trades=  68  POTL=  10204  AVG=    150  AVG-RISK=   50  RW/RSK=    3.00
    WINS-TRADES  11778/  35  LOSS-TRADES  -1574/  33


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050103 - 051231,  Octant % =  20

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP      20   68    35    33     150      50   3.00



Very Small Stop (40% of Octant)
 Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050102 - 051231, Percentage of Basic Model Octant =  40
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103    115  121860   234   122005     145      145
  SP 0503 050104    115  119550  1306   118815     735      880
  SP 0503 050112     65  118250   850   118315     -65      815
  SP 0503 050113     75  118000  1429   117725     275     1090
  SP 0503 050118     90  119620  1330   119530     -90     1000
  SP 0503 050120     95  117680  1212   117495     185     1185
  SP 0503 050121    105  117540   916   117645    -105     1080
  SP 0503 050128     95  116750  1019   116715      35     1115
  SP 0503 050131     75  118270  1127   118195     -75     1040
  SP 0503 050201     75  118220   713   119085     865     1905
  SP 0503 050211     95  120520  1025   120885     365     2270
  SP 0503 050222    100  119230  1125   119330    -100     2170
  SP 0503 050304     95  121650   735   121555     -95     2075
  SP 0503 050311    145  119950  1355   119945       5     2080
  SP 0503 050315    147  119910  1450   119840      70     2150
  SP 0503 050316    155  119300   830   119455    -155     1995
  SP 0506 050316    150  120200   640   119100    1100     3095
  SP 0506 050329    125  117280   157   117405    -125     2970
  SP 0506 050407    120  119260  1133   119140    -120     2850
  SP 0506 050414    115  117120   925   115705    1415     4265
  SP 0506 050425    105  116330   909   116495     165     4430
  SP 0509 050502     35  116840   859   116805     -35     4395
  SP 0506 050503    135  116700  1334   116715      15     4410
  SP 0506 050526     60  119820   919   119760     -60     4350
  SP 0506 050601     75  120070   909   120605     535     4885
  SP 0506 050603     95  120680   733   120585     -95     4790
  SP 0506 050607     90  120640   908   120880     240     5030
  SP 0506 050609     70  119170   901   119200     -30     5000
  SP 0509 050609     60  119880   830   119690     190     5190
  SP 0509 050610     65  119790  1349   119815     -25     5165
  SP 0506 050613     72  120690  1008   120628     -62     5103
  SP 0509 050613     65  121170  1007   121165      -5     5098
  SP 0509 050614     70  121170  1258   121280     110     5208
  SP 0506 050616     87  121000   937   121143     143     5351
  SP 0509 050616     85  121460   909   121665     205     5556
  SP 0509 050617     95  121690   418   122040     350     5906
  SP 0509 050622    130  122370   427   122350     -20     5886
  SP 0509 050707     92  119270   358   119362     -92     5794
  SP 0509 050708     85  121020  1035   120935     -85     5709
  SP 0509 050720    105  123420  1219   123875     455     6164
  SP 0509 050721    125  123810   357   124455     645     6809
  SP 0509 050725    100  123900    20   124080     180     6989
  SP 0509 050727     80  123980  1356   123900     -80     6909
  SP 0509 050728     72  124010   536   123938     -72     6837
  SP 0509 050802    100  124720  1449   124620    -100     6737
  SP 0509 050803    100  124720  1124   124740      20     6757
  SP 0509 050805     90  122930  1027   122840      90     6847
  SP 0509 050808     90  122990   945   123080     -90     6757
  SP 0509 050816    117  122430  1320   122547    -117     6640
  SP 0509 050818    117  122040   229   121827     213     6853
  SP 0509 050822    110  121830  1212   121940    -110     6743
  SP 0509 050831     65  121570  1357   121505     -65     6678
  SP 0509 050914     65  122860  1320   122925     -65     6613
  SP 0512 050914     65  123470  1318   123535     -65     6548
  SP 0512 050920     82  123100  1347   123182     -82     6466
  SP 0512 050929     80  122920  1230   122840     -80     6386
  SP 0512 051024    135  120020  1442   120195     175     6561
  SP 0512 051026    150  120310   515   120550     240     6801
  SP 0603 051031    110  121200   830   121720     520     7321
  SP 0512 051031    135  120510   621   121315     805     8126
  SP 0512 051102    165  121120   946   121770     650     8776
  SP 0512 051107    210  122620  1317   122410    -210     8566
  SP 0512 051109    215  122750  1124   122735     -15     8551
  SP 0512 051110    120  122820  1243   123410     590     9141
  SP 0512 051117    110  124050  1311   124480     430     9571
  SP 0603 051206     45  127630   832   128235     605    10176
  SP 0512 051206    102  127110  1054   127318     208    10384
  SP 0603 051207     72  126600  1228   126272     328    10712

 Number Trades=  68  POTL=  10712  AVG=    157  AVG-RISK=  100  RW/RSK=    1.57
    WINS-TRADES  13302/  36  LOSS-TRADES  -2590/  32


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050102 - 051231,  Octant % =  40

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP      40   68    36    32     157     100   1.57



Medium Stop (60% of Octant) 
Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050102 - 051231, Percentage of Basic Model Octant =  60
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103    172  121860   234   121948      88       88
  SP 0503 050104    172  119550  1306   118872     678      766
  SP 0503 050112     97  118250   850   118347     -97      669
  SP 0503 050113    112  118000  1429   117762     238      907
  SP 0503 050118    135  119620  1330   119485    -135      772
  SP 0503 050120    142  117680  1212   117542     138      910
  SP 0503 050121    157  117540   916   117697    -157      753
  SP 0503 050128    142  116750  1019   116762     -12      741
  SP 0503 050131    112  118270  1127   118158    -112      629
  SP 0503 050201    112  118220   713   119048     828     1457
  SP 0503 050211    142  120520  1025   120838     318     1775
  SP 0503 050222    150  119230  1125   118510     720     2495
  SP 0503 050304    142  121650   735   122430     780     3275
  SP 0503 050311    217  119950  1355   120017     -67     3208
  SP 0503 050315    221  119910  1450   119840      70     3278
  SP 0503 050316    232  119300   830   118780     520     3798
  SP 0506 050316    225  120200   640   119175    1025     4823
  SP 0506 050329    187  117280   157   117467    -187     4636
  SP 0506 050407    180  119260  1133   119080    -180     4456
  SP 0506 050414    172  117120   925   115762    1358     5814
  SP 0506 050425    157  116330   909   116443     113     5927
  SP 0509 050502     52  116840   859   116830     -10     5917
  SP 0506 050503    202  116700  1334   116648     -52     5865
  SP 0506 050526     90  119820   919   119730     -90     5775
  SP 0506 050601    112  120070   909   120568     498     6273
  SP 0506 050603    142  120680   733   120538    -142     6131
  SP 0506 050607    135  120640   908   120835     195     6326
  SP 0506 050609    105  119170   901   119235     -65     6261
  SP 0509 050609     90  119880   830   119720     160     6421
  SP 0509 050610     97  119790  1349   119847     -57     6364
  SP 0506 050613    109  120690  1008   120591     -99     6265
  SP 0509 050613     97  121170  1007   121133     -37     6228
  SP 0509 050614    105  121170  1258   121245      75     6303
  SP 0506 050616    131  121000   937   121099      99     6402
  SP 0509 050616    127  121460   909   121623     163     6565
  SP 0509 050617    142  121690   418   122040     350     6915
  SP 0509 050622    195  122370   427   122285     -85     6830
  SP 0509 050707    139  119270   358   119409    -139     6691
  SP 0509 050708    127  121020  1035   120893    -127     6564
  SP 0509 050720    157  123420  1219   123823     403     6967
  SP 0509 050721    187  123810   357   124393     583     7550
  SP 0509 050725    150  123900    20   124030     130     7680
  SP 0509 050727    120  123980  1356   123860    -120     7560
  SP 0509 050728    109  124010   536   123901    -109     7451
  SP 0509 050802    150  124720  1449   124570    -150     7301
  SP 0509 050803    150  124720  1124   124690     -30     7271
  SP 0509 050805    135  122930  1027   122885      45     7316
  SP 0509 050808    135  122990   945   122565     425     7741
  SP 0509 050816    176  122430  1320   122606    -176     7565
  SP 0509 050818    176  122040   229   121886     154     7719
  SP 0509 050822    165  121830  1212   121995    -165     7554
  SP 0509 050831     97  121570  1357   121473     -97     7457
  SP 0509 050914     97  122860  1320   122747     113     7570
  SP 0512 050914     97  123470  1318   123567     -97     7473
  SP 0512 050920    124  123100  1347   122600     500     7973
  SP 0512 050929    120  122920  1230   122800    -120     7853
  SP 0512 051024    202  120020  1442   120128     108     7961
  SP 0512 051026    225  120310   515   120475     165     8126
  SP 0603 051031    165  121200   830   121720     520     8646
  SP 0512 051031    202  120510   621   121248     738     9384
  SP 0512 051102    247  121120   946   121770     650    10034
  SP 0512 051107    315  122620  1317   122305    -315     9719
  SP 0512 051109    322  122750  1124   122628    -122     9597
  SP 0512 051110    180  122820  1243   123360     540    10137
  SP 0512 051117    165  124050  1311   124480     430    10567
  SP 0603 051206     67  127630   832   128213     583    11150
  SP 0512 051206    154  127110  1054   127266     156    11306
  SP 0603 051207    109  126600  1228   126309     291    11597

 Number Trades=  68  POTL=  11597  AVG=    170  AVG-RISK=  151  RW/RSK=    1.13
    WINS-TRADES  14948/  38  LOSS-TRADES  -3351/  30


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050102 - 051231,  Octant % =  60

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP      60   68    38    30     170     151   1.13



Medium to Large Stop 
Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050102 - 051231, Percentage of Basic Model Octant =  80
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103    230  121860   234   121890      30       30
  SP 0503 050104    230  119550  1306   118930     620      650
  SP 0503 050112    130  118250   850   118380    -130      520
  SP 0503 050113    150  118000  1429   117800     200      720
  SP 0503 050118    180  119620  1330   119440    -180      540
  SP 0503 050120    190  117680  1212   117590      90      630
  SP 0503 050121    210  117540   916   117750    -210      420
  SP 0503 050128    190  116750  1019   116810     -60      360
  SP 0503 050131    150  118270  1127   118120    -150      210
  SP 0503 050201    150  118220   713   119010     790     1000
  SP 0503 050211    190  120520  1025   120790     270     1270
  SP 0503 050222    200  119230  1125   118510     720     1990
  SP 0503 050304    190  121650   735   122430     780     2770
  SP 0503 050311    290  119950  1355   120090    -140     2630
  SP 0503 050315    295  119910  1450   119840      70     2700
  SP 0503 050316    310  119300   830   118780     520     3220
  SP 0506 050316    300  120200   640   119250     950     4170
  SP 0506 050329    250  117280   157   117530    -250     3920
  SP 0506 050407    240  119260  1133   119020    -240     3680
  SP 0506 050414    230  117120   925   115820    1300     4980
  SP 0506 050425    210  116330   909   116390      60     5040
  SP 0509 050502     70  116840   859   116830     -10     5030
  SP 0506 050503    270  116700  1334   116580    -120     4910
  SP 0506 050526    120  119820   919   119700    -120     4790
  SP 0506 050601    150  120070   909   120530     460     5250
  SP 0506 050603    190  120680   733   120490    -190     5060
  SP 0506 050607    180  120640   908   120790     150     5210
  SP 0506 050609    140  119170   901   119270    -100     5110
  SP 0509 050609    120  119880   830   119750     130     5240
  SP 0509 050610    130  119790  1349   119880     -90     5150
  SP 0506 050613    145  120690  1008   120555    -135     5015
  SP 0509 050613    130  121170  1007   121100     -70     4945
  SP 0509 050614    140  121170  1258   121210      40     4985
  SP 0506 050616    175  121000   937   121055      55     5040
  SP 0509 050616    170  121460   909   121580     120     5160
  SP 0509 050617    190  121690   418   122040     350     5510
  SP 0509 050622    260  122370   427   122220    -150     5360
  SP 0509 050707    185  119270   358   119455    -185     5175
  SP 0509 050708    170  121020  1035   121640     620     5795
  SP 0509 050720    210  123420  1219   123770     350     6145
  SP 0509 050721    250  123810   357   124330     520     6665
  SP 0509 050725    200  123900    20   123980      80     6745
  SP 0509 050727    160  123980  1356   123970     -10     6735
  SP 0509 050728    145  124010   536   123865    -145     6590
  SP 0509 050802    200  124720  1449   124520    -200     6390
  SP 0509 050803    200  124720  1124   124640     -80     6310
  SP 0509 050805    180  122930  1027   122930       0     6310
  SP 0509 050808    180  122990   945   122610     380     6690
  SP 0509 050816    235  122430  1320   122665    -235     6455
  SP 0509 050818    235  122040   229   121945      95     6550
  SP 0509 050822    220  121830  1212   122050    -220     6330
  SP 0509 050831    130  121570  1357   122270     700     7030
  SP 0509 050914    130  122860  1320   122780      80     7110
  SP 0512 050914    130  123470  1318   123600    -130     6980
  SP 0512 050920    165  123100  1347   122600     500     7480
  SP 0512 050929    160  122920  1230   123270     350     7830
  SP 0512 051024    270  120020  1442   120060      40     7870
  SP 0512 051026    300  120310   515   120400      90     7960
  SP 0603 051031    220  121200   830   121720     520     8480
  SP 0512 051031    270  120510   621   121180     670     9150
  SP 0512 051102    330  121120   946   121770     650     9800
  SP 0512 051107    420  122620  1317   122200    -420     9380
  SP 0512 051109    430  122750  1124   122520    -230     9150
  SP 0512 051110    240  122820  1243   123360     540     9690
  SP 0512 051117    220  124050  1311   124480     430    10120
  SP 0603 051206     90  127630   832   128190     560    10680
  SP 0512 051206    205  127110  1054   127215     105    10785
  SP 0603 051207    145  126600  1228   126345     255    11040

 Number Trades=  68  POTL=  11040  AVG=    162  AVG-RISK=  201  RW/RSK=    0.81
    WINS-TRADES  15240/  40  LOSS-TRADES  -4200/  28


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050102 - 051231,  Octant % =  80

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP      80   68    40    28     162     201   0.81


Large Stop 
 Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050102 - 051231, Percentage of Basic Model Octant = 100
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103    288  121860   234   121832     -28      -28
  SP 0503 050104    288  119550  1306   118988     562      534
  SP 0503 050112    163  118250   850   118413    -163      371
  SP 0503 050113    188  118000  1429   117838     162      533
  SP 0503 050118    225  119620  1330   119395    -225      308
  SP 0503 050120    238  117680  1212   117638      42      350
  SP 0503 050121    263  117540   916   117803    -263       87
  SP 0503 050128    238  116750  1019   116858    -108      -21
  SP 0503 050131    188  118270  1127   118082    -188     -209
  SP 0503 050201    188  118220   713   118972     752      543
  SP 0503 050211    238  120520  1025   120742     222      765
  SP 0503 050222    250  119230  1125   118510     720     1485
  SP 0503 050304    238  121650   735   122430     780     2265
  SP 0503 050311    363  119950  1355   120163    -213     2052
  SP 0503 050315    369  119910  1450   119840      70     2122
  SP 0503 050316    388  119300   830   118780     520     2642
  SP 0506 050316    375  120200   640   119320     880     3522
  SP 0506 050329    313  117280   157   117593    -313     3209
  SP 0506 050407    300  119260  1133   118960    -300     2909
  SP 0506 050414    288  117120   925   115878    1242     4151
  SP 0506 050425    263  116330   909   116337       7     4158
  SP 0509 050502     88  116840   859   116830     -10     4148
  SP 0506 050503    338  116700  1334   116512    -188     3960
  SP 0506 050526    150  119820   919   119670    -150     3810
  SP 0506 050601    188  120070   909   120492     422     4232
  SP 0506 050603    238  120680   733   120442    -238     3994
  SP 0506 050607    225  120640   908   120745     105     4099
  SP 0506 050609    175  119170   901   119305    -135     3964
  SP 0509 050609    150  119880   830   119780     100     4064
  SP 0509 050610    163  119790  1349   119913    -123     3941
  SP 0506 050613    182  120690  1008   120518    -172     3769
  SP 0509 050613    163  121170  1007   121067    -103     3666
  SP 0509 050614    175  121170  1258   121175       5     3671
  SP 0506 050616    219  121000   937   121011      11     3682
  SP 0509 050616    213  121460   909   121537      77     3759
  SP 0509 050617    238  121690   418   122040     350     4109
  SP 0509 050622    325  122370   427   122155    -215     3894
  SP 0509 050707    232  119270   358   119502    -232     3662
  SP 0509 050708    213  121020  1035   121640     620     4282
  SP 0509 050720    263  123420  1219   123717     297     4579
  SP 0509 050721    313  123810   357   124267     457     5036
  SP 0509 050725    250  123900    20   123930      30     5066
  SP 0509 050727    200  123980  1356   123970     -10     5056
  SP 0509 050728    182  124010   536   123828    -182     4874
  SP 0509 050802    250  124720  1449   124470    -250     4624
  SP 0509 050803    250  124720  1124   124590    -130     4494
  SP 0509 050805    225  122930  1027   122975     -45     4449
  SP 0509 050808    225  122990   945   122655     335     4784
  SP 0509 050816    294  122430  1320   122724    -294     4490
  SP 0509 050818    294  122040   229   122004      36     4526
  SP 0509 050822    275  121830  1212   122105    -275     4251
  SP 0509 050831    163  121570  1357   122237     667     4918
  SP 0509 050914    163  122860  1320   122813      47     4965
  SP 0512 050914    163  123470  1318   123383      87     5052
  SP 0512 050920    207  123100  1347   122600     500     5552
  SP 0512 050929    200  122920  1230   123270     350     5902
  SP 0512 051024    338  120020  1442   119992     -28     5874
  SP 0512 051026    375  120310   515   120325      15     5889
  SP 0603 051031    275  121200   830   121720     520     6409
  SP 0512 051031    338  120510   621   121112     602     7011
  SP 0512 051102    413  121120   946   121770     650     7661
  SP 0512 051107    525  122620  1317   122175    -445     7216
  SP 0512 051109    538  122750  1124   122412    -338     6878
  SP 0512 051110    300  122820  1243   123360     540     7418
  SP 0512 051117    275  124050  1311   124480     430     7848
  SP 0603 051206    113  127630   832   128167     537     8385
  SP 0512 051206    257  127110  1054   127163      53     8438
  SP 0603 051207    182  126600  1228   126382     218     8656

 Number Trades=  68  POTL=   8656  AVG=    127  AVG-RISK=  252  RW/RSK=    0.50
    WINS-TRADES  14020/  39  LOSS-TRADES  -5364/  29


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050102 - 051231,  Octant % = 100

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP     100   68    39    29     127     252   0.50


Large+  Stop 
 Detail Report 
  All Research results are in trading fractions.
 12345678 Period 050102 - 051231, Percentage of Basic Model Octant = 120
  
      Del   Date   Risk   Pr-In  Time   Pr-Out    Potl      Sum
  SP 0503 050103    345  121860   234   121775     -85      -85
  SP 0503 050104    345  119550  1306   119045     505      420
  SP 0503 050112    195  118250   850   118445    -195      225
  SP 0503 050113    225  118000  1429   117875     125      350
  SP 0503 050118    270  119620  1330   119580     -40      310
  SP 0503 050120    285  117680  1212   117685      -5      305
  SP 0503 050121    315  117540   916   117855    -315      -10
  SP 0503 050128    285  116750  1019   116905    -155     -165
  SP 0503 050131    225  118270  1127   118045    -225     -390
  SP 0503 050201    225  118220   713   118935     715      325
  SP 0503 050211    285  120520  1025   120700     180      505
  SP 0503 050222    300  119230  1125   118510     720     1225
  SP 0503 050304    285  121650   735   122430     780     2005
  SP 0503 050311    435  119950  1355   120110    -160     1845
  SP 0503 050315    442  119910  1450   119840      70     1915
  SP 0503 050316    465  119300   830   118780     520     2435
  SP 0506 050316    450  120200   640   119320     880     3315
  SP 0506 050329    375  117280   157   117655    -375     2940
  SP 0506 050407    360  119260  1133   118900    -360     2580
  SP 0506 050414    345  117120   925   115935    1185     3765
  SP 0506 050425    315  116330   909   116285     -45     3720
  SP 0509 050502    105  116840   859   116830     -10     3710
  SP 0506 050503    405  116700  1334   116445    -255     3455
  SP 0506 050526    180  119820   919   119640    -180     3275
  SP 0506 050601    225  120070   909   120455     385     3660
  SP 0506 050603    285  120680   733   120395    -285     3375
  SP 0506 050607    270  120640   908   120700      60     3435
  SP 0506 050609    210  119170   901   119340    -170     3265
  SP 0509 050609    180  119880   830   119810      70     3335
  SP 0509 050610    195  119790  1349   119945    -155     3180
  SP 0506 050613    218  120690  1008   120482    -208     2972
  SP 0509 050613    195  121170  1007   121035    -135     2837
  SP 0509 050614    210  121170  1258   121140     -30     2807
  SP 0506 050616    262  121000   937   120968     -32     2775
  SP 0509 050616    255  121460   909   121495      35     2810
  SP 0509 050617    285  121690   418   122040     350     3160
  SP 0509 050622    390  122370   427   122090    -280     2880
  SP 0509 050707    278  119270   358   119548    -278     2602
  SP 0509 050708    255  121020  1035   121640     620     3222
  SP 0509 050720    315  123420  1219   123665     245     3467
  SP 0509 050721    375  123810   357   124205     395     3862
  SP 0509 050725    300  123900    20   123880     -20     3842
  SP 0509 050727    240  123980  1356   123970     -10     3832
  SP 0509 050728    218  124010   536   124710     700     4532
  SP 0509 050802    300  124720  1449   124420    -300     4232
  SP 0509 050803    300  124720  1124   124540    -180     4052
  SP 0509 050805    270  122930  1027   123020     -90     3962
  SP 0509 050808    270  122990   945   122700     290     4252
  SP 0509 050816    352  122430  1320   122290     140     4392
  SP 0509 050818    352  122040   229   122062     -22     4370
  SP 0509 050822    330  121830  1212   122160    -330     4040
  SP 0509 050831    195  121570  1357   122205     635     4675
  SP 0509 050914    195  122860  1320   122840      20     4695
  SP 0512 050914    195  123470  1318   123415      55     4750
  SP 0512 050920    248  123100  1347   122600     500     5250
  SP 0512 050929    240  122920  1230   123270     350     5600
  SP 0512 051024    405  120020  1442   119960     -60     5540
  SP 0512 051026    450  120310   515   120250     -60     5480
  SP 0603 051031    330  121200   830   121720     520     6000
  SP 0512 051031    405  120510   621   121045     535     6535
  SP 0512 051102    495  121120   946   121770     650     7185
  SP 0512 051107    630  122620  1317   122130    -490     6695
  SP 0512 051109    645  122750  1124   122305    -445     6250
  SP 0512 051110    360  122820  1243   123360     540     6790
  SP 0512 051117    330  124050  1311   124480     430     7220
  SP 0603 051206    135  127630   832   128145     515     7735
  SP 0512 051206    308  127110  1054   127112       2     7737
  SP 0603 051207    218  126600  1228   126418     182     7919

 Number Trades=  68  POTL=   7919  AVG=    116  AVG-RISK=  302  RW/RSK=    0.38
    WINS-TRADES  13904/  34  LOSS-TRADES  -5985/  34


 Summary Report 
  All Research results are in trading fractions.
 1234567890  Period Covered: 050102 - 051231,  Octant % = 120

 SYMB %Octant #-TD  #Win #Loss Av-Potl Av-Loss RW/RSK
   SP     120   68    34    34     116     302   0.38

For additional studies of Drawdown: Drawdown Studies for SP.