SATS2 Stock Trading Expert Results Part 2

First let’s have a look at a longer term uptrend. The S&P500 index made a profit of almost 100% in the period 02/28/2003 till 07/13/2007 (figure 1.3).

Figure 1.3: S&P500 long term uptrend.

 

What was the profit using SATS2 with the 25 selected stocks during this period?

There was a total profit of $105,707 with a starting capital of $25,000 or 423% with an average of 16 trades per stock.

Next let’s see what the result is after a longer up move followed by a very big correction.

The S&P500 index made no buy and hold profit in the period 02/28/2003 till 11/21/2008 (figure 1.5).

 

Figure 1.5: S&P500 long term uptrend and downtrend.

What was the profit using SATS2 during this period with a 100% correction at the end of this period?

Here there was a total profit of $76,410 with a starting capital of $25,000 or 305% with an average of 20 trades per stock.

Worst scenario would of course be trying to trade long during the whole of the down move.

The S&P500 index made a 50% buy and hold loss in the period 09/07/2007 till 11/21/2008 (figure 1.7).

 

Figure 1.7: Worst case starting with a long term downtrend.

What was the profit using SATS2 during this period with a 50% buy and hold loss in the S&P500 index?

Here there was a loss of $3,322 with a starting capital of $25,000 or a loss of only 13% with an average of 4 trades per stock.

Next let’s have a look and make sure that SATS2 is giving good results with a big number of stocks and under very bad conditions (more than 100% price reaction). We made a test with 179 stocks from the start of 2003 until the end of February 2009 with 75% losing trades if using a buy and hold strategy still making a profit of about $200,000. SATS2 made $332,000 or still 185% profit, with an average of 20 trades per stock, avoiding the enormous draw down and probably your hart failure using a buy and hold strategy.

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Still you can do a lot better

You can of course make your profit just trading the signals of the SATS2 expert.

On the other hand, because there is no perfect system and if you are prepared to invest some time in looking at the trades proposed by SATS2, I can show you some additional techniques to avoid losing trades and take some early profits without compromising the SATS2 system. That will boost your profit.

In the example of AMD, we start with the first buying signal from the SATS2 back test of AMD on February 28, 2003 with a starting capital of $1,000 and I show you these techniques up to November 21, 2008.

In this period AMD using SATS2 makes a profit of $1,436 or 143% with the $1,000 starting capital. In the full detailed example of AMD in part II, I show you how we end up with a total profit of $15,166 or 1,516%, clearly a much better result.

And that is not the end of the story

A second improvement that can bring much more money especially during descending markets is making use of put options to generate profits during correction phases.

I show you how in full detail; using a very simple technique that is easy to learn.

In the example of AMD, the result with just a limited extra effort and an extra capital of $1,000 for trading PUT options is very considerable and brings an additional profit of more than $140,000.

Combining all techniques with the basic SATS2 expert and the methods of decision making to enter or exit trades and using PUT options together with specific money management brings an enormous profit of $155,166 with a starting capital of only $2,000.

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