The Galileo Trading System Performance
Based On Two Actual $1000 Accounts
To track Marquez's progress in trading his Galileo Trading System, he created $1000 accounts with a forex broker. By using $1000 accounts, it makes it easier for Marquez to report on his progress and for people to make quick estimates.
Lines of best fit had been shown to ESTIMATE the growth possibilities -- on a per annum basis -- based on Galileo's performance since the start of December, when we began trading the currently-used modification of the system. These projections will be adjusted as we progress.
ACCOUNT 1: SUBSCRIPTION ACCOUNT
This account was set up to report the results of the Trade Signal Subscription service using a flat risk-growth factor level of 4.
It currently trades the following 18 currency pairs:
01. AUD/JPY |
07. EUR/GBP
|
13. NZD/USD |
02. AUD/USD
|
08. EUR/JPY
|
14. USD/CAD |
03. CAD/JPY
|
09. EUR/USD |
15. USD/CHF |
04. EUR/AUD
|
10. GBP/CHF |
16. USD/DKK |
05. EUR/CAD
|
11. GBP/JPY |
17. USD/JPY |
06. EUR/CHF
|
12. GBP/USD |
18. USD/SGD |
 SUBSCRIBERS CAN MAGNIFY GAINS TO INCREASE RETURNS
Marquez is trading these accounts using conservative trade sizes. The trade sizes are described as 'conservative' because so far, the account drawdowns are very small in relation to the sizes of the accounts. Subscribers can magnify the system's gains by trading more units of currencies than what Marquez trades. Likewise, if they want to reduce the size of losses, they can do so by reducing the units of currencies they trade per trade. It is up to each trader to find a balance between his or her tolerance for risk against his or her desire for gains.
Warning: By trading more units per trade, gains are magnified but so do losses! A series of big losses can wipe out your account.
ACCOUNT 2: TRADED 10 CURRENCY PAIRS -- INACTIVE
(Traded: 27-Oct-08 to 26-Apr-08)
It's purpose was to determine whether trading the top earning 10 currency pairs were better than trading 18 currency pairs. When we compare its results with Account 1, which traded 18 pairs, this account was more volatile during Dec '07 to Apr '08. Therefore, it had accomplished its purpose. It is better to trade 18 currency pairs. To minimise the number of accounts he is trading, Marquez stopped trading this account on Saturday, 26 April 2008 to focus more on trading his FXManager accounts.
01. CAD/JPY
|
06. GBP/JPY |
02. EUR/CAD
|
07. GBP/USD |
03. EUR/JPY
|
08. USD/CHF |
04. EUR/USD |
09. USD/DKK |
05. GBP/CHF |
10. USD/JPY |
ACCOUNT 3: FXMANAGER
This account was created to report Marquez' performance trading his FXManager accounts. It trades all 18 currency pairs like Account 1. Unlike Account 1 which uses a flat amount of risk, Marquez uses a variable risk-growth factor in an attempt to maximise returns with this account while keeping drawdown levels to around 10%. We can expect more volatility than Account 1.
COMPARING THE RESULTS
Even though the Galileo trading system's history is fairly young, we can compare its performance with some industry benchmarks.
Barclay CTA Index
The Barclay CTA Index is a leading industry benchmark of representative performance of commodity trading advisors. There are currently 491 programs included in the calculation of the index for the year 2008. Historically, these had been their average annual returns, as a group:
1980 |
63.69% |
1990 |
21.02% |
2000 |
7.86% |
1981 |
23.90% |
1991 |
3.73% |
2001 |
0.84% |
1982 |
16.68% |
1992 |
-0.91% |
2002 |
12.36% |
1983 |
23.75% |
1993 |
10.37% |
2003 |
8.69% |
1984 |
8.74% |
1994 |
-0.65% |
2004 |
3.30% |
1985 |
25.50% |
1995 |
13.64% |
2005 |
1.71% |
1986 |
3.82% |
1996 |
9.12% |
2006 |
3.54% |
1987 |
57.27% |
1997 |
10.89% |
2007 |
7.64% |
1988 |
21.76% |
1998 |
7.01% |
2008 |
7.77% † |
1989 |
1.80% |
1999 |
-1.19% |
|
|
| † Estimated YTD performance for 2008 calculated with reported data as of June-7-2008 08:55 US CST . (Source: Barclay) |
Barclay Currency Traders Index
The Barclay Currency Trader Index is a leading industry benchmark of representative performance of currency trading programs. In 2008, it was tracking 145 currency programs:
1980 |
- |
1990 |
57.74% |
2000 |
4.45% |
1981 |
- |
1991 |
10.94% |
2001 |
2.71% |
1982 |
- |
1992 |
10.27% |
2002 |
6.29% |
1983 |
- |
1993 |
-3.33% |
2003 |
11.08% |
1984 |
- |
1994 |
-5.96% |
2004 |
2.36% |
1985 |
- |
1995 |
11.49% |
2005 |
-1.21% |
1986 |
- |
1996 |
6.69% |
2006 |
-0.12% |
1987 |
29.56% |
1997 |
11.35% |
2007 |
2.59% |
1988 |
4.28% |
1998 |
5.71% |
2008 |
1.50% † |
1989 |
18.89% |
1999 |
3.12% |
|
|
| † Estimated YTD performance for 2008 calculated with reported data as of June-9-2008 05:11 US CST (Source: Barclay) |
A NOTE ABOUT LOOKING AT PERFORMANCE STATISTICS:
Hypothetical trading results have their use but what is most important when you are considering a trading signal service is ACTUAL and CURRENT trading results. Quite often, other trading signal providers just show you hypothetical test results done on past data. Anybody with trading software and knowledge of trading system development can produce very impressive simulated results. Quite often, however, most systems do not perform as expected because of the fact that the market's past behaviour does not equal its future behaviour.That is why many service providers are not too eager to show you their results. Many of you who have bought trading systems or subscribed to trading signal services can attest to this.
Before you commit to a trading signal service, you need to perform what we call an INTEGRITY TEST. What you need to do is to subscribe to the system, trade its signals and at the end of the trial period, see if the result being reported is very close to what you got. Even if you continue to use the service, do an INTEGRITY TEST ever so often.
By insisting on ACTUAL CURRENT RESULTS and by performing an INTEGRITY TEST, you will avoid wasting time and unnecessary losses.
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