Ed Mamula.com

My results for February 2007:

 # closed winning trades : 5

# closed losing trades : 5

 Net monthly profit (loss)% :  -3.7%

Current drawdown : 32.4%

My month to date results for February 2007:

 # closed winning trades : 4

# closed losing trades : 1

 Net monthly profit % :  +41.6%

Current drawdown : 0.6%

This was a relatively uneventful week for the Cable Glider.  It entered long on Wednesday, got stopped out at a loss early Thursday morning, went short on Thursday afternoon, and closed out with a gain on Friday afternoon that nearly reversed the loss that it suffered earlier in the week.

Since Monday is a holiday, I’ll be spending some time this weekend trying to determine whether any special precautions should be taken in shortened trading weeks; the two shortened trading weeks in January could have produced large gains, but at the time, the Cable Glider did not enter due to it’s economic / calendar filters.

I’d like to make note of a change to the Cable Glider as of February 9th, 2006.  It had been using MACD as an entry filter only, but I’ve found evidence that MACD can be used as an exit tool as well on Friday afternoons only.  Before discovering this, I had a simple rule in place to exit all trades on Friday afternoon, because I do not want to be exposed to the illiquidity risk of holding a position over the weekend.  It is a risk mitigation factor that I presumed would lower the system’s overall profitability, but in fact, it seems to have improved my back test results.  So it’s a win - win.  I get to take it easy every weekend, and in doing so, the system’s returns are improved.   The more recent change to use a MACD cross as an exit filter on Fridays netted me an extra $2000 compared to the predecessor system which would have exited at a predefined time rather than as a result of a technical signal.