Weekend Trader Backtest

I like to stay in regular contact with the vendors of the systems I subscribe to. Many times they are willing to share a lot of information, which will give a better understanding of the system itself, and of signals services in general. The vendor of Weekend Trader recently shared his backtest results, going back to 2000:








The good thing about the backtests is that they show an outperformance of all major indices for every year. On top of that, the system was profitable every year. As you might notice from the 2000 graph, the drawdowns were fairly large (up to 40% at one point). Not as large as the S&P500 (~50%), but nonetheless quite risky.

I think these charts are an excellent example that even a one year real-life trading history on C2 might just tell a tiny part of the story. Another good reason why a portfolio of systems is preferred over trading just one system.