Information on FuturesExaminer.com is provided for informational purposes only. We assume no liability for the accuracy or meaningfulness of data presented here, or for any use that users may make of it. Caution: Commodity trading involves substantial risk of LOSS, and is not appropriate for everyone. Do not trade with funds you can not afford to LOSE!!
The systems that we track may not be representative of the many trading systems available. Also, a given system may have achieved high returns in the past but may lose significant amounts of money in the future. Some systems that we track are newly released and may have impressive hypothetical back-test returns, but it may be too early to see if they will produce similar returns going forward in actual trading, and if so for how long.
Two types of results are reported on Futures Examiner - Actuals and Hypotheticals:
Actual results are based on actual trades that were executed, taking into account real-world factors and anomalies in trade execution. Actuals are clearly identified, e.g. SystemName-SP-Actual. Hypothetical results are based on computer simulation of trades that would be signalled by a trading system, and assume correct execution of every signal. Hypotheticals are clearly identified, e.g. SystemName-SP-Hypoth.
We report both types of results with realistic (we believe) allowances for slippage, commission & fees, and cost of the system.
Neither type of result allows for financial risk, or trader's (emotional) behaviour such as deciding when to start trading a system, changing the number of contracts, omitting some trades, or quitting in the face of a large drawdown. Therefore even Actual results are to a large extent Hypothetical.
ACTUAL results should be viewed with caution, because PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
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.
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