Track Records from the Drummond "30 Lessons"
Multiple Trade Plan results from fully-disclosed Walk-Forward
Drummond Geometry has an excellent record of harvesting potential profit from the market.
Because the methodology contains elements that are discretionary to the individual user, results vary from trader to trader.
Nevertheless, the rules that accompany the following pro-forma track record of trades are clear and objective and are set down in the Lessons with great care and completeness.
The track records were created by a bar-by-bar forward walk-through incorporating time period analysis on three timeframes. The daily trades were made without the benefit of intraday data. The hourly trades were made without the benefit of data lower than that provided by the hourly bars.
The results that can be achieved by Drummond Geometry are excellent, but we do not wish to be unrealistic in our presentations of track records. First there is the matter of slippage and commissions. Although most trades can be entered and exited without much slippage, it is nevertheless a fact of life. Commissions, though small, are also a fact of life. A much bigger potential influence is the basic humanity of all traders – not every day is a good day; sometimes we cannot execute as well as on other days; sometimes computers break and data feeds fail and other unpredictable elements enter into the picture.
To account for all of these elements the results shown are only 50 percent of the actual results. In other words, we have already reduced the results by half to account for slippage, commissions, and errors. In one case we have reduced the results by 75 percent.
These trade results are drawn directly from the summary sections of Lessons 16-20 of the Drummond Geometry classic "30 Lessons".
A Word about Return on Investment (ROI) . . .
We do not regard return on investment figures as particularly significant because there are so many variations in the way that people approach the conventions of futures trading.
Futures trading is anything but passive investment and the comparisons with conventional investing are all but meaningless.
Nevertheless we offer these comparisons for those who might be interested.
These track records are for the most part based on one-contract trading. The aggressive trader sometimes adds a second or a third contract. The conservative trader always trades with one contract.
The margin for a US T-Bond is currently set at about $3,700. We advocate placing $10,000 of risk capital behind each contract traded. Thus, using these guidelines, we can calculate the ROI for the Dotted Line Trade, for the conservative trader, as follows:
Net income for the conservative trader was $3,900 for 90 days or $15,600 on an annual basis.
The annual ROI based on one-contract margin would be 420 percent.
The annual ROI based on a more prudent $10,000 trading capital standing behind one contract would be 156 percent.
We leave the other calculations of ROI up to you.
Further information
Please remember that past performance is no guarantee of future gain. We want you to trade safely.
Please read our risk disclosure.