STC Remarkable Trading System

Background: Our many years of testing various trading methods on S&P futures has led us to conclude that we are most comfortable trading S&Ps using counter-trend strategies. We believe the Remarkable S&P system will prove to be a highly reliable system that buys on dips and sells on rallies. Unlike the Prudent system which trades only the long side, the Remarkable System trades both long and short and has a truly "remarkable" 83% winning trades on the long side and an even more "remarkable" 86% winning trades on the short side.

Strengths of the system: 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. The Remarkable System averages about 12 trades per year and tends to hold winning trades for about eight market days while generally cutting the losses after 12 or 13 market days. In our ten year test period the system proved to be quite profitable. Trading one contract would have resulted in a hypothetical gain of $207,362.50 with a maximum drawdown of $14,375. As previously mentioned the system is remarkably accurate with 84% winning trades (96 winners out of 114 trades).

Weaknesses of the system: Since the Prudent System and the Remarkable System both enter on dips there will be some occasional overlaps on the long side. It is also possible for the Remarkable System to go short while the Prudent System is still long. In spite of having 86% winning trades on the short side, due to the strong upward bias in our test data the short trades accounted for only $51,037 (24%) of the total profits. In a more neutral market the short profits should increase.

The system has a large money management stop ($4,500) and any series of consecutive losses would require a substantial amount of capital to maintain trading. Due to the ever increasing volatility in the equity markets, larger drawdowns can be expected. Conservative traders might want to use the Remarkable signals on less volatile markets or mini-contracts.

Summary: The logic of the Remarkable S&P system is simple and sound. It has been carefully designed to be highly adaptive and robust. In our opinion the system is indeed remarkable because it can trade the very difficult S&P market either long or short with unusually high winning percentages. We believe the system may have broad application as a market timing tool to assist in mutual fund timing and the trading of individual stocks. The Remarkable S&P system features Jack Bicer's popular on-screen order display.

Performance Summary: 010/17/88 to 12/31/98
Includes $150.00 per trade deducted for slippage and Commissions
Total Net Profit	$207,362.50	Open Position P/L	$0.00
Gross Profit	$263,587.00	Gross Loss	$-56,225.00

Total # of Trades	114	Percent Profitable	84%
# Winning Trades	96	Number Losing Trades	18

Largest Winning Trade	$21,100.00	Largest Losing Trade	$-4,650.00
Average Winning Trade	$2,745.70	Average Losing Trade	$3,123.61
Ratio avg Win/ avg Loss	0.88	Avg Trade( Win & Loss)	$1,818.97

Max Consec. Winners	17	Max Consec. Losers	3
Avg Bars in Winners	9	Avg # bars in Losers	11

Max Intraday Drawdown	$-14,375.00
Profit Factor	4.69	Max Contracts Held	1
Account Size Required	$14,375.00	Return on Account	1443%

Performance Summary: Long Trades 10/17/88 to 12/31/98
Includes $150.00 per trade deducted for slippage and Commissions
Total Net Profit	$156,325.00	Open Position P/L	$0.00
Gross Profit	$188,250.00	Gross Loss	$-31,925.00

Total # of Trades	70	Percent Profitable	83%
# Winning Trades	58	Number Losing Trades	12

Largest Winning Trade	$21,100.00	Largest Losing Trade	$-4,650.00
Average Winning Trade	$3,245.69	Average Losing Trade	$-2,660.42
Ratio avg Win/ avg Loss	1.22	Avg Trade( Win & Loss)	$2,233.21

Max Consec. Winners	18	Max Consec. Losers	2
Avg Bars in Winners	9	Avg # bars in Losers	9

Max Intraday Drawdown	$-9,800.00
Profit Factor	5.90	Max Contracts Held	1
Account Size Required	$9,800.00	Return on Account	1595%

Performance Summary: Short Trades 10/17/88 to 12/31/98
Includes $150.00 per trade deducted for slippage and Commissions
Total Net Profit	$51,037.00	Open Position P/L	$0.00
Gross Profit	$75,337.50	Gross Loss	$-24,300.00

Total # of Trades	44	Percent Profitable	86%
# Winning Trades	38	Number Losing Trades	6

Largest Winning Trade	$10,025.00	Largest Losing Trade	$-4,650.00
Average Winning Trade	$1,982.57	Average Losing Trade	$-4,050.00
Ratio avg Win/ avg Loss	0.54	Avg Trade( Win & Loss)	$1,159.94

Max Consec. Winners	14	Max Consec. Losers	1
Avg Bars in Winners	10	Avg # bars in Losers	15

Max Intraday Drawdown	$-6,087.50
Profit Factor	3.10	Max Contracts Held	1
Account Size Required	$6,086.50	Return on Account	838%

The hypothetical performance data above was generated using Omega TradeStation, with $150 deducted per trade for commissions and slippage. In our opinion, the account size required and return on account calculations may not accurately reflect the actual account size required to trade this system nor the return to be expected. Past performance is not necessarily indicative of future results.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY 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 PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

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