Trade The Bearish Trader Portfolio with as little as $25,000 starting account.

The Bearish Trader Portfolio from AlgorithmicTrading.net is designed for the day trader or investor with as little as $25,000 in trading capital, who has a strong conviction that the market will go lower.  Generally speaking, this package is not recommended to be traded by the average investor – instead we prefer either the ES/TY futures or S&P Crusher (both of which have positive expectations for both bull and bear markets). Refer to our Overview of Algorithmic Trading Design Methodology page for more details.
Past performance is not indicative of future performance. Trading futures & options is not for everyone and involves substantial risk of loss.

 

The Bearish Trader Package Features:

Trades Four Algorithms Concurrently

Combines the Covered Calls, Breakdown Day Trade (SHORT), Morning Gap Day Trade & Treasury Note trading strategies – stacking your hand in favor of a sustained Bear Market. Not recommended for the typical investor or trader.

100% Automated Futures Trading System

The Bearish Trader Portfolio is a fully automated futures trading system, with zero time commitment required. Receive real-time trade alerts on your phone, and daily statements. Trades the S&P Emini Futures & 10 Yr Note.

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Rigorously Back-Tested 15 Years

We back-test each of our algorithms over 15 years. View the back-testing detail on our system and each algorithm.

Live Trade History

The Breakdown Day Trade Strategy & Treasury Note Strategy has traded live since October 2015. The newer additions started trading live in October 2016 & include the Gap Short algo and the Covered Calls algorithm. Note, in this package – since the Momentum Strategy is not traded, the calls sold are not covered – but are simply Naked Short Call positions.

Product Dashboard – The Bearish Trader

The following data is taken from compiled back-tested Tradestation reports. 

Yearly Analysis (per $25,000 traded) 
Average % gain per year 45.39%
Average $ gain per year +$11,348
Monthly Analysis (per $25,000 traded)  
Average % gain per month +4.00%
Average $ gain per month +$999
Monthly win rate 72.78%
Trade Analysis (per $25,000 traded)  
Total Num Trades 1079
Trades With > 5% Loss 35
Trade Win Rate 71.76%
Period Analyzed
Historical period analyzed May 1, 2003 – Oct 31, 2016
Slippage & Commission Used in Analysis
Commission used in all reports (Futures Trade) $6.50 per round trip trade (all-in)
Commission used in all reports (Options Trade) $25.00 per round trip trade (all-in)
Slippage used in all reports (ES) $12.50 per round trip trade
Slippage used in all reports (TY) $24.00 per round trip trade
Draw-Down (per $25,000 traded)
Worst percent draw-down (closing trade to closing trade) -30.32%**
Period Seen 2/26/16-6/3/16
**Estimated draw-down based on back-testing data (see disclaimer, below). Note that heavier losses than indicated are possible.
Treasury Note Trading Strategy
Instrument traded 10-Year Note (TY)
Outperforms during Down & Sideways Moving Markets
Ability to hold overnight Yes
Algorithm type Momentum Swing Trade (buys on pullback)
Short Day Trade Strategy
Instrument traded Emini S&P 500 (ES)
Outperforms during Down Moving Markets
Ability to hold overnight No – Day trade only
Algorithm type Breakdown (Short)
Morning Gap Day Trade
Instrument traded Emini S&P 500 (ES)
Outperforms during Down & Sideways Moving Markets
Ability to hold overnight No – Day trade only
Algorithm type Gap Fade (SHORT)
Covered Calls
Instrument traded Weekly Calls on S&P 500 Emini Futures (ES)
Type of option traded Sells an OTM Call when Momentum Algo Triggers
Day of the week trade can be initiated Monday-Thursday
Exit criteria Holds till Fridays Expiration
Outperforms in Down & Sideways Moving Markets
Ability to hold overnight Yes
Ability to hold over the weekend No
Account Details
Minimum account size $25,000
Allocation One contract traded on each algorithm (1/1/1/1 = 4 total) per $25,000
Number of algorithms traded 4
Instrument traded ES/TY
Trades Futures Yes , long (TY) & short (ES)
Trades Options Yes (sells naked calls)
Account types allowed Cash, IRA, Roth IRA
Pricing
Licenses available Yes
Licensing fee Call or Contact Us for a quote

CFTC RULE 4.41: Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. In other words, this package trades both the futures and the options on futures. Backtesting an options algorithm poses many challenges due to the unknown estimates for premium collected. Depending on (among other things) market volatility, the premium collected when selling an option can vary greatly. In general, the higher the volatility, the more premium we might expect to collect. In addition, ES Weekly Options were not available to trade for the entire backtested period. In order to provide our customers with more accurate back-tested data we can, we have created estimates of premium broken down by Day (Mon-Thu) and used a look-up table for various ranges of the VIX (refer to the Iron Condor product page for details). Please note, these estimates have significant limitations and the corresponding reports which use these estimates should be considered to be much less than perfect. All back-testing has limitations, however back-tested options algorithms have even more in our opinion due to the potential inaccuracies used in determining premium collected estimates. 

The Bearish Trader Trade List: Trading $25,000 (1 Unit)

Data assumes $25,000 starting account, trading 1 Unit (1 contract per algo/per trade, four algos total). Includes slippage & commission. Results are taken from compiled back-tested/hypothetical accounts which have limitations (see CFTC RULE 4.41 below).

CFTC RULE 4.41: Results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

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AlgorithmicTrading.net provides trading algorithms based on a computerized system, which is also available for use on a personal computer. All customers receive the same signals within any given algorithm package. All advice is impersonal and not tailored to any specific individual's unique situation. AlgorithmicTrading.net, and its principles, are not required to register with the NFA as a CTA and are publicly claiming this exemption. Information posted online or distributed through email has NOT been reviewed by any government agencies — this includes but is not limited to back-tested reports, statements and any other marketing materials. Carefully consider this prior to purchasing our algorithms. For more information on the exemption we are claiming, please visit the NFA website: http://www.nfa.futures.org/nfa-registration/cta/index.html. If you are in need of professional advice unique to your situation, please consult with a licensed broker/CTA.

DISCLAIMER: Commodity Futures Trading Commission Futures trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website or on any reports. The past performance of any trading system or methodology is not necessarily indicative of future results.

Unless otherwise noted, all returns posted on this site and in our videos is considered Hypothetical Performance. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

With the exception of the statements posted from live accounts on Tradestation and/or Gain Capital, all results, graphs and claims made on this website and in any video blogs and/or newsletter emails are from the result of back-testing our algorithms during the dates indicated. These results are not from live accounts trading our algorithms. They are from hypothetical accounts which have limitations (see CFTC RULE 4.14 below and Hypothetical performance disclaimer above). Actual results do vary given that simulated results could under — or over — compensate the impact of certain market factors. Furthermore, our algorithms use back-testing to generate trade lists and reports which does have the benefit of hind-sight. While back-tested results might have spectacular returns, once slippage, commission and licensing fees are taken into account, actual returns will vary. Posted maximum draw downs are measured on a closing month to closing month basis. Furthermore, they are based on back-tested data (refer to limitations of back-testing below). Actual draw downs could exceed these levels when traded on live accounts.

CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under — or over — compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

Statements posted from our actual customers trading the algorithms (algos) include slippage and commission. Statements posted are not fully audited or verified and should be considered as customer testimonials. Individual results do vary. They are real statements from real people trading our algorithms on auto-pilot and as far as we know, do NOT include any discretionary trades. Tradelists posted on this site also include slippage and commission.

This strictly is for demonstration/educational purposes. AlgorithmicTrading.net does not make buy, sell or hold recommendations. Unique experiences and past performances do not guarantee future results. You should speak with your CTA or financial representative, broker dealer, or financial analyst to ensure that the software/strategy that you utilize is suitable for your investment profile before trading in a live brokerage account. All advice and/or suggestions given here are intended for running automated software in simulation mode only. Trading futures is not for everyone and does carry a high level of risk. AlgorithmicTrading.net, nor any of its principles, is NOT registered as an investment advisor. All advice given is impersonal and not tailored to any specific individual.

* Published percentage per month is based on back-tested results (see limitations on back-testing above) using the corresponding package. This includes reasonable slippage and commission. This does NOT include fees we charge for licensing the algorithms which varies based on account size. Refer to our license agreement for full risk disclosure.