Hypothetical Monthly Returns (includes typical commissions and system fees)
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2010 | (0.9%) | +1.4% | +0.7% | +3.9% | +1.1% | +0.8% | (0.7%) | +2.1% | +3.0% | - | +0.2% | +1.2% |
| 2011 | (2.6%) | +2.9% | +0.3% | +3.3% | (0.1%) | (1.7%) | +2.1% | +4.9% | (1.6%) | +2.6% | +0.9% | (1.7%) |
| 2012 | +3.4% | (0.2%) | (0.5%) | +0.4% | (2.2%) |
Strategy Summary
A cautious balanced system based on simple asset allocation. A set-and-forget trading strategy intended to run long-term in for example a retirement fund account. Relatively safe and steady easy to follow and understand.
Also see http://IsonomyPlus.collective2.com and http://IsonomyTurbo.collective2.com related systems intended for higher returns.
Remember there is a substantial risk of loss in trading. Past performance is not indicative of future results. Do not trade with money you cannot afford to lose.
Subscribe to System
| 90-day free trial, then $75 per quarter | Details |
There is a free trial period of 90 days before you are charged. You may cancel at any time before this (we send you an email at least a day before, to remind you, so there are no surprises.)
Then, after the trial, you will be charged $75 per quarter.
Or... Want to try AutoTrading without risking real money? Trade this with $100,000 simulated dollars, for free.
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Model Account Status
| Started | $10,000 |
|---|---|
| Buy Power | $7,279 |
| Cash | $1 |
| Equity | $1 |
| Cumulative $* | $3,200 |
| Total System Equity | $13,200 |
| Margined | $1 |
| Open P/L | $2,601 |
| System vendor has delayed data by 7 days for non-subs. | |
Reviews
No reviews have been written yet.
Statistics
Analytics| All Statistics Based on Hypothetical Results | |
|---|---|
| Trades | 5 |
| # Profitable | 3 (60.0%) |
| # months tracked | 29 |
| Profitable months | 18 (62.1%) |
| Avg trade duration | 728.7 days |
| Annual return (compounded) | 12.7% |
| Average win | $839.76 |
| Average loss | $1.01 |
| Profit factor | 1923.5:1 |
| Max peak-to-valley drawdown (historical) | 3.73% |
| drawdown period | Sept 20, 2011 to Oct 04, 2011 |
| Correlation w/ S&P | 0.129 |
| Sharpe ratio | 2.057 |
| Keep after worst-case slippage | 100.0% |
| Probabilities of future account loss | |
| Chance of 10% account loss | 0.0% |
| Chance of 20% account loss | 0.0% |
| Chance of 30% account loss | 0.0% |
| Chance of 50% account loss | 0.0% |
|---|---|
| Chance of 100% account loss | 0.0% |
| Average Profit to Drawdown (APD) | 47.13 |
| Average P/L per unit traded | |
| Sum of dividends and cash expir. in model account | $683 |
System Description
The Isonomy Balanced series:
--- Isonomy, Cautious Balanced - this system. Unexciting but relatively safe, easy to understand and follow.
--- Isonomy Plus, Enhanced Balanced - Enhanced version of Isonomy for higher returns.
--- Isonomy Turbo, Aggressive Balanced - Most aggressive of the three systems for highest returns.
TARGET
To keep up with long term stock market returns whilst greatly reducing volatility along the way. Could perhaps be used for a more stable retirement or college fund.
Options or futures are not used.
DESCRIPTION
Isonomy works with a combination of Gold (or other precious commodity), Stocks, Bonds and Cash. We are using the gold as an inflation hedge (and general crisis hedge for that matter) over the short term and for capital appreciation over the very long term. The other three pay us some nice dividends or interest so even in times of stagnation we can make a little progress.
The principle is that sufficiently different asset classes do not usually move in step for long and so by keeping our money allocated between different asset classes, and rebalancing from time to time, we can smooth out our returns over the long term. Various studies have shown that such diversification produces remarkably steady performance.
In fact, this is pretty much a version of Harry Browne's "Permanent Portfolio".
Therefore we expect the same or slightly below the long-term return of the stock market alone (with dividends reinvested) but with much less volatility along the way.
Trading is very infrequent, perhaps four to eight trades per year. Therefore trading costs are minimal. Signals may come at any time of day but if you are off-line for a while and not auto-trading there is no need to panic - placing the trade a day or two late should usually cause no discernible deviation from performance as measured by Collective 2.
REQUIREMENTS
~ This system is designed to be traded with $10,000 equity or more, but at a push you can trade with even as little as $2,000 in your account.
~ Make sure you scale your trades accordingly. For instance if the system equity (up-to-date value is shown in the box on the right side of this page) is currently $10,000 and the signal is to buy 10 shares then you buy 20 if you have $20,000 or you buy just 2 if you have $2,000.
~ Important: If you start trading this system manually you should place trades to open all currently open positions. If you autotrade then this should be done for you automatically.
~ No margin is used. If you wish to gear up and you have $30,000 or more, then I recommend you check out Isonomy Plus instead.
~ If you nevertheless wish to use margin here, then I recommend you go easy on it because the margin interest will start cancelling out any increase in long-term returns. Also your volatility will increase: at 200% allocation you might get up to a third per year extra return over the long run, but also more than double the volatility in the short term!
Please use the system forum or contact me directly if you have any questions.
CREDIT CRISIS
Below are back-test results of how this system may have performed had it been running just before, and during, the Credit Crunch. Of course, these are only approximated hypothetical results derived after the fact and should be taken as such.
Year....Isonomy....S&P500
2005....12.1%.........9.8% (Jan 05 - Jan 06)
2006......8.6%.......14.2%
2007....12.9%........-2.7%
2008.....-6.0%......-38.2%
2009....13.2%.......41.0%
--- Isonomy, Cautious Balanced - this system. Unexciting but relatively safe, easy to understand and follow.
--- Isonomy Plus, Enhanced Balanced - Enhanced version of Isonomy for higher returns.
--- Isonomy Turbo, Aggressive Balanced - Most aggressive of the three systems for highest returns.
TARGET
To keep up with long term stock market returns whilst greatly reducing volatility along the way. Could perhaps be used for a more stable retirement or college fund.
Options or futures are not used.
DESCRIPTION
Isonomy works with a combination of Gold (or other precious commodity), Stocks, Bonds and Cash. We are using the gold as an inflation hedge (and general crisis hedge for that matter) over the short term and for capital appreciation over the very long term. The other three pay us some nice dividends or interest so even in times of stagnation we can make a little progress.
The principle is that sufficiently different asset classes do not usually move in step for long and so by keeping our money allocated between different asset classes, and rebalancing from time to time, we can smooth out our returns over the long term. Various studies have shown that such diversification produces remarkably steady performance.
In fact, this is pretty much a version of Harry Browne's "Permanent Portfolio".
Therefore we expect the same or slightly below the long-term return of the stock market alone (with dividends reinvested) but with much less volatility along the way.
Trading is very infrequent, perhaps four to eight trades per year. Therefore trading costs are minimal. Signals may come at any time of day but if you are off-line for a while and not auto-trading there is no need to panic - placing the trade a day or two late should usually cause no discernible deviation from performance as measured by Collective 2.
REQUIREMENTS
~ This system is designed to be traded with $10,000 equity or more, but at a push you can trade with even as little as $2,000 in your account.
~ Make sure you scale your trades accordingly. For instance if the system equity (up-to-date value is shown in the box on the right side of this page) is currently $10,000 and the signal is to buy 10 shares then you buy 20 if you have $20,000 or you buy just 2 if you have $2,000.
~ Important: If you start trading this system manually you should place trades to open all currently open positions. If you autotrade then this should be done for you automatically.
~ No margin is used. If you wish to gear up and you have $30,000 or more, then I recommend you check out Isonomy Plus instead.
~ If you nevertheless wish to use margin here, then I recommend you go easy on it because the margin interest will start cancelling out any increase in long-term returns. Also your volatility will increase: at 200% allocation you might get up to a third per year extra return over the long run, but also more than double the volatility in the short term!
Please use the system forum or contact me directly if you have any questions.
CREDIT CRISIS
Below are back-test results of how this system may have performed had it been running just before, and during, the Credit Crunch. Of course, these are only approximated hypothetical results derived after the fact and should be taken as such.
Year....Isonomy....S&P500
2005....12.1%.........9.8% (Jan 05 - Jan 06)
2006......8.6%.......14.2%
2007....12.9%........-2.7%
2008.....-6.0%......-38.2%
2009....13.2%.......41.0%
- Remember there is a substantial risk of loss in trading. Past performance is not indicative of future results. Do not trade with money you cannot afford to lose.
