Three trades, one of them big,
and a losing month

Hi,

This is the copy trading version of the monthly letter. The figures here are the Collective2 strategy's own record, not the licensed book's, because you're following a different and much smaller set of systems.. three of them, on micro futures, holding positions for days rather than minutes. A month on this side is a handful of trades, not ninety.

October closed three. Two made money and one lost more than both winners put together, so the month finished down 264.56 dollars.

Everything below is on the Collective2 record, which you can read yourself.

Three contracts long the Nasdaq for a week, out 180 points lower than it went in. That single position lost 1,085.82 dollars, more than the two winners made between them, and it is the whole reason October is red.

Here is the part worth knowing if you were watching it live. On 19 October that trade was 5,709.64 dollars underwater, 23.33% by Collective2's own drawdown measure, with the Nasdaq down at 29,202. It then came back and closed for a loss of a thousand. Nothing was overridden and no stop was moved, the rules just held it.. and if you looked at your account that Monday you saw a number more than five times worse than the one in this letter. That is what carrying a futures position through a week actually looks like, and it is the part performance tables never show you.

Seventy eight points of DAX over nine days, short, for eighty six dollars. Nobody's idea of a great trade and I'm putting it in anyway, because the ordinary kind is what an equity curve is actually made of.

It also shows you the other half of this book. That DAX position was short while the Nasdaq positions were long, so the three systems were not all pointing the same way in October. Eighty six dollars is not what saved the month, nothing saved the month.. but not being correlated is the entire reason this is three systems instead of one.

That's October on the copy trading side. A losing month, written up the same way a winning one would be.

One thing the calendar did to this letter. Two positions opened in October and were still open when the month ended, so they are not in the figures above.. the Nasdaq short from 27 October closed on 1 November for 2,458.06 dollars, and the Micro-DAX long from 29 October closed on 2 November for a loss of 204.80. Both land in the November letter. I'd rather tell you now than have the number above surprise you when you hold it next to your own statement.

This is the first of the monthly letters, so if there's something you want in here every month, just hit reply and tell me.

Best regards / Carl