In 2011 we ran two parallel strategies. Our old strategy (from 2010), with a higher risk/reward ratio and the current strategy with more refined risk profile. Our main trading strategy for 2011 returned 60.4%. This is a great achievement in its own right, but what is more important to us is that the equity curve is much smoother, giving us a good indication of a risk profile (see below).
The 2010 strategy returned growth of 219% (see chart below). Although the 2010 strategy assumed more risk, it performed exceptionally well, given that is had smaller starting capital (just over $2,000). It survived the volatility in the markets and prospered exceptionally well.
It is encouraging that both strategies scaled well in 2011. However, financial markets never sleep and only the paranoid prosper and survive! Therefore, in 2012 we are launching our new strategy that is a natural evolution from our previous strategies. The strategy for 2012, yet again will have a lower risk profile, as in these uncertain times it would be unwise to assume too much risk.
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