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 DOESN'T 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 TO 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.
- Night session currencies entry orders expire at the completion of the electronic session at 3:15 p.m. and should be pulled until the next order comes out.
- Currency and electronic stops from the previous day should continue until the new stop is available. Given market liquidity in the night session for currencies and the S & P and the ease of electronic trading and placing stops, we’ll assume stops are being executed for you. Plus we do have foreign traders and people who stay up all night
- If we want to exclude night session entries, we’ll indicate “day session only” in the trading strategy. If an order says to exit market on close, it means the electronic session. To accommodate this new policy, we’ll do our best to publish as early as possible or send out new intraday updates so that you can get night session entries and stops in place.
- If an exit target is hit within 1-2 ticks, we would cancel the entry order, as the pattern is complete and the trade should be nullified.
- Breakout and breakdown orders on stops should only be entered during the day session and should not be used at the open of a market unless they are accompanied by a limit order.
- Note: (early only) means first 1-1 1/2 hours of trade.
- Exit targets even if they originate from intraday updates should be executed in day or night session.
- Market-on-open orders with limits are only executable during the opening range and should be pulled after five minutes if not filled. If the market gaps under or over our stop at the open or if the opening call indicates that it’ll, the order is negated and should not be entered later in the day.
- Fortucast assumes that if a limit order entry or exit hits within 1 or 2 ticks, that you will issue a “cancel and replace” market order to complete the trade five minutes after the number was hit
- NEW: If on entries you only miss a trade within 2 ticks, then after five minutes, cancel and replace the trade to the market.
- Exiting or entering market on close in the electronic session refers to the last trade there and not to settlement. The electronic markets settle to the pit closes based on exchange rules and regulations. For simplicity, for open profit and loss we do show the settlement, which often skews where the market was trading when it closed before settlement.
- We often trade in 1-lots, but you have to adjust the number of contracts to your trading account size. When we really like a trade, we specify a 2nd position.