LS Trader Is Now Up 30.9% For 2009

I was talking to my colleague Phil today, and we ran a check on the profits made for 2009, and it came out at 30.9% from around 2 months of trading. This result is pretty spectacular considering how volatile the markets have been. After achieving a record breaking year in 2008 of 1504.1% profit, 2009 was always going to be a challenge to match those figures, but we are off to a flying start. It is hard to predict how much profit we will make this year, but an educated guess would be in the region of 165%-170% (as this is the average taken over 26 years). It should be noted that the system does perform well in dire situations in the economy and I can easily see the system making 300%+ profit this year, but time will obviously be the true indicator.

The biggest trends we have seen is from the stock market, which I have paid a lot of interest to in my recent blog posts. You can look through the previous blogs to see the movements between the last few days in the stock markets. Overall for this week, Wall Street fell 6%, the Nasdaq 100 also fell 6%, the S&P500 fell 7% and the FTSE 100 also fell 7%.

Next week will be more interesting, and it will be fascinating to see if these trends will continue, and how far the stock markets can continue to fall. Based on market news, and remember this is something that we do not do at LS Trader, the view is that there is no confidence and no good news in the markets, and the market will continue to fall, and no one knows when or how long this will continue for. With trend following, we are short in the stock markets, and I personally believe the trends will continue to fall. It will be interesting to see if Monday produces a rally, or a straight decline testing new low levels.

Kind Regards,

Robert Stewart