STC Systems Overview Page

Equity Chart	System Description
Empire	Empire Eurodollar Trading System The Empire ED System is an attractive trend following system designed to trade continuously in the direction of the trend. The exits are quite innovative in that they make allowance for "overbought" and "oversold" conditions. We also use some novel stops calculated in relation to support and resistance levels without risking getting caught with the crowd when all the stops are hit. The various parameters we selected appear to have a wide margin for error and we found that it wasn't necessary to do a great deal of curve fitting to generate a very appealing system. The Empire ED System and the Millennium ED System were carefully designed to complement one another. The Empire System buys on strength and the Millennium System buys on dips.
Millennium	Millennium Eurodollar Trading System The Millennium ED system is an excellent trend-following system designed to enter during significant low-risk periods in prevailing uptrends or downtrends. It includes new research findings and logic to distinguish between a retracement that may be a low-risk trend following opportunity and a retracement that is likely to become a dangerous trend reversal. This new indicator helps us to identify potential trend reversals and significantly improves the accuracy of the system. The Millennium ED System has many outstanding characteristics, especially in terms of the high Profit Factor (total gains/total losses = 8.08) and the fact that the average trade (win and loss) of $572 exceeds the usual margin requirement. The parameters we selected appear to have a wide margin for error and we found that it wasn't necessary to do a great deal of curve fitting to generate a very appealing system. We believe the Millennium ED System with a money management stop of less than $1,000 and unusually small drawdowns can be safely traded by both large and small traders. The Eurodollar is one of the worlds most actively traded interest rate futures markets and should appeal to conservative traders who enjoy trading a market that displays low volatility and great orderliness most of the time. The ED contract is one of the best trending markets we have found and the Millennium ED system applies the best of our exit techniques to capture as much of the trend as possible. We believe that the exit concepts in this system will be equally applicable to many different trend-following systems.
Piranha	Piranha S & P Trading System The system uses the direction of interest rates to help determine whether the odds favor going long or short. The Piranha S&P System is swift to enter and swift to exit. Much like its notorious namesake, the intent of the Piranha System is to quickly take numerous bites out of the S&P market. The system trades aggressively both long and short, buying on dips and selling short on rallies and is very capable of producing excellent profits on both sides of the market. Using the reduced $250 S&P point value throughout our historical test period and trading no more than one contract at a time the system has produced more than $300,000 in hypothetical profits in ten years and ten months of trading. The system is unusually accurate with 76% winning trades (119 winners out of 156 trades). The system has a solid profit factor (gross profit divided by gross loss) of 3.33.
Crossbow	Crossbow Swiss Trading System The Crossbow System is a highly accurate trend following system designed to enter long on dips and sell short on rallies. We have also designed a simple set of exits that are able to let profits run without giving back too much of the open profits. This quick to enter and quick to exit system should be able to trade the intermediate swings extremely well. The system testing results have clearly demonstrated that this system is capable of achieving a high percentage of winning trades with relatively low drawdowns. These characteristics make the equity curve very steep and unusually smooth. The simple logic behind the entries and exits is easily understood and the strategy should prove very easy to trade in real time.
Strategic	Strategic Swiss Trading System The Swiss Franc remains one of the worlds most tradable currencies and an excellent market for traders and particularly trend followers. The Strategic Swiss System is an excellent trend following system designed to follow breakouts. In our historical testing it has proven to be highly profitable and has many outstanding characteristics, especially in terms of the high percentage of winning trades and the large size of those winning trades. The Strategic Swiss System is the first system we have published that uses the Commodity Channel Index for entries. We have also designed a new exit for this system that employs some of our most promising research in using the ADX. We think this exciting new exit will be getting us out of many trades surprisingly near their peak.
Remarkable	Remarkable S & P Trading System The logic of the Remarkable S&P system is simple and sound. The Remarkable System uses Average True Range bands to set up entries so that the buy signals occur near the low band and the short signals occur near the high band. The ATR bands work well for this purpose because they contract and expand rapidly and stay in tune with changes in volatility. We believe this design makes the system very adaptive and robust. In our opinion the system is indeed remarkable because it can trade the S&P market either long or short with unusually high winning percentages. We believe the system may also have broad application as a market timing tool to assist in mutual fund timing and the trading of individual stocks.
Katsu	Katsu Yen Trading System "KATSU" is the Japanese word for VICTORY. We consider the Katsu Yen system to be a victory in our search for a counter-trend system that will make money while our trend-following systems may be temporarily losing money or out of the market. The Katsu system does not require trends to trade profitably. It has been designed to trade back and forth within a broad trading range by selling near the top of the range and buying near the lows. This highly adaptable system is also capable of being an excellent trend-following system that buys dips in an uptrend and sells rallies in a downtrend. The Katsu Yen system is enough to be used as a stand alone system or it can be used in conjunction with the 7-11 and First Sword Yen systems as part of a multiple system strategy.
Roughneck	Roughneck Crude Oil Trading System This highly adaptive system has 78% winning trades and is capable of capturing either large or small profits in both rising and falling markets. The system is based on simple and logical concepts that incorporate the basic principals of profitable trend-following. Our testing shows that the system provides excellent returns with unusually low drawdowns. The Roughneck Crude Oil trading system is our second system in the energy complex and we were careful to design the Roughneck System so that it complements our Wildcat System very nicely by trading over shorter time frames. Although both systems are trend-following in nature, the Roughneck System exits quicker and does a much better job of trading the short side of the market. We expect the Roughneck Crude Oil System to be an important part of our multiple-system strategy and a consistent performer in the years to come.
Mack	Mack the NYFE Trading System The NYFE Index can be traded with much lower margin requirements than the S&P Index and our historical testing showed it to be an excellent trading vehicle. The "MACK" System performs well on both long and short trades and shows an unusually high Profit Factor (Gross Profit Divided by Gross Loss) of 6.20. The system incorporates break even exits and does an excellent job of locking in profits at various levels. In spite of using high costs of $150 per trade the average trade (win and loss) was a very substantial $3855. Over the last ten years trading one contract without any compounding of profits would have resulted in a hypothetical gain of $173,475 with a maximum drawdown of $7,550. The system meets our high standards for accuracy with 69% winning trades (31 winners out of 45 trades).
Prudent	Prudent S & P Trading System Persistent research has led us to conclude that the S&P offers such an abundance of profit potential that we didn't have to be concerned about maximizing returns. Once we changed our primary focus from the profit side of the system and concentrated our research on reducing and controlling our risk at the entry level, the Prudent S&P system began to take shape. In the Prudent S&P System we have added several innovative features to help us handle the high risk of S&P trading. The exits are unique and the strategy uses logical profit targets that vary according to the strength of the trend. Among other safeguards, the risks in the system are substantially reduced because the system closely monitors volatility and allows us to spend the most volatile market days calmly watching the chaos from the sidelines. In our opinion the Prudent S&P system is exactly what the name implies. We are pleased to have found a highly profitable S&P systems that could be operated with such tight risk control.
First Sword	First Sword Yen Trading System We have developed a fondness for systems like this one that buy on dips and sell on rallies. Many of you will recognize "First Sword" as code words from The Art of War. First Sword refers to the ability to sense an incipient move on the part of an opponent. Trading one contract from 1/4/88 to 12/17/98 would have resulted in a hypothetical gain of $116,587.00 with a maximum drawdown of $7,962.50. The system is reasonably accurate with 55 percent winning trades (47 winners out of 85 trades), and the winning trades were larger than losing trades by a factor of 2.98. If we combine 50% winning trades with winners that are almost three times greater than the losers it should be no surprise that all of the system statistics are excellent.
Phoenix	Phoenix Bond Trading System Our strategy of employing multiple systems per market requires that our systems be carefully integrated. The role of the new Phoenix Bond System is clearly defined: It is intended to detect and trade bottom formations and it is the only one of our systems that performs this highly specialized function. Like the legendary Phoenix rising from the ashes, this system is specifically designed to capture a new uptrend rising from a "V" bottom. It fills a void by identifying V-bottoms and initiating long positions early in the trend well before the other long only bond systems are allowed to begin trading. The Phoenix system combines well with the other systems and increases returns substantially with very little increase in risk.
Sidewinder	Sidewinder Bond Trading System The Sidewinder Bond System trades both long and short during sideways periods when trends are not obvious. This inovative new system should play a valuable role in our goal of of applying a multi system strategy to the bond market. The Sidewinder system fills in the gaps left by the trend following systems and brings us one important step closer to our ambitious goal of being able to trade bonds successfully regardless of the underlying direction of the market. 77% winners on long trades, 80% on short trades. 10 trades per year. Profit factor of 4.22 Net profit $95,681 per contract over last ten years. 20 consectutive winners, 3 consecutive losers. This simple system should be applicable to many markets.
Serendipity	Serendipity Bond Trading System The Serendipity Bond System was designed to be a short-term system that would trade successfully on the short side in order to complement and enhance our existing long only systems. However, as the Serendipity name implies, we were extremely pleased to find that this short side system has excellent historical results trading from the long side as well. In this system we present a historically profitable short term strategy that may be implemented to systematically trade the Treasury Bonds futures market from both the long and short side.
711	711 Yen Trading System This is a solid and well tested trend following system that is very similar to the ADX strategy we have used in actual trading for many years. The strategy has been applied to the Yen which has proven to be a good trending market with a long history of unusually profitable price swings in both directions. Based on the simple entry logic and the creative exit strategies that are an integral part of the system, we expect that the "7 - 11" System should work very well on a real time basis.
Wildcat	Wildcat Crude Oil Trading System The excellent trending characteristics of the Crude Oil market allowed us to develop a system that would trade both long and short with better than 50% accuracy. Thanks to the unusually b directional movement the average trade (win and loss) is a remarkable $1735 with the average winning trade being well over $3,000. The average losing trade is slightly less than $700 which makes the average winning trade more than four times as large as the average losing trade. The combined results (long and short) showed 61%winners.
Little Dipper	Little Dipper Bond Trading System This extremely accurate system was designed as a short term system to specifically complement the 25 x 25 and the Big Dipper Bond Systems. We believe the combination of a long term system with a short term system such as the Little Dipper will provide a valuable diversification of strategies. The use of short term exit strategies enables the system to capture significant profits over a brief period of time. The average winning trade lasts only four days, yet produces an average gain of $776 making the average gain per market day more than $190, a respectable daily return. Perhaps most remarkable is that the test data shows the system to be 85% accurate over the last ten years.
Big Dipper	Big Dipper Bond Trading System The Big Dipper system we are offering is a trend following system with test results that show 88% accuracy over the last ten years. (Only 85% over the last 15 years.) We believe the superb exit strategy is a key ingredient and is one that can be applied to many other markets as well as Bonds. The Big Dipper exit strategy is significantly different than the 25 x 25 exit strategy. It incorporates a breakeven strategy and other protective measures that give us a great deal of comfort. Over the last 15 years the hypothetical test results produced over $110,000 in profits with a maximum intraday drawdown of only $4,700.
25 x 25	25 x 25 Bond Trading System Free to Members!This system is offered free to STC Members as a sample of our work. The 25 x 25 system is a long-only trend-following system designed for the Bond futures market. This easy to follow system doesn't trade often but it has made hypothetical profits of $53,000 over the last 10 years of historical data, with an accuracy rate of 76%. The real time results have been excellent.

Portfolio Equity Chart	Portfolio Description
All Systems Portfolio	All Trading Systems Combined Portfolio This is the Combined Portfolio of all 14 of the Traders Club Systems current to September 1, 1999. The smoothness of this chart demonstrates the value of our multiple systems concept very well.
Stock Index Portfolio	Stock Index Trading Systems Combined Portfolio Our Stock Index Portfolio is made up of systems which trade the S & P and the Nyfe. Using these systems in combination allows us to capitalize on the variety of features each system contains individually.
Swiss Portfolio	Swiss Trading Systems Combined Portfolio The Swiss Franc remains one of the worlds most tradeable currencies and an excellent market for traders and particularly trend followers. The Crossbow System identifies the direction of the primary trend in the Swiss Francs and then enters only on dips or sells short only on rallies and was carefully designed to complement our Strategic Swiss System which is an excellent trend following system designed to follow breakouts./small>
Yen Portfolio	Yen Trading Systems Combined Portfolio The trending characteristics of the Yen market make it an excellent vehicle for this portfolio of systems. We continue our practice of using multiple tailored systems to enhance the overall profit potential in this dynamic market.
Bond Portfolio	Bond Trading Systems Combined Portfolio It is our goal to use multiple systems in combination in order to take advantage of the many valuable qualities of each system. The Combined Equity of our Bond Systems demonstrates the value of using this philosophy.