In this section of the blog the monthly recaps of the exact Boomerang Core Trade setups are shown. These are not actual live trades but are hypothetical results based on the exact, precision rules for entering trades. The subsequent gain/losses shown are based on trading 4 mini Nasdaq (NQ) contracts with a $3.75 commission charge per 1 contract round turn by the futures brokerage. Be sure to read the full CFTC risk disclosure at the bottom of this page along with CFTC Rule 4.41 on Hypethetical trades. There is an average of 5-8 trades for each trading session.
The Boomerang Core system is based on each trade setup taking a +3.00 gain (+12 ticks) or a -2.50 loss (-10 ticks) if the trade does not move in the favor of the setup.
The mini Nasdaq (NQ) trades at $5 per tick per contract. Therefore the examples of each Core Trade Setups will be shown to move at 4 contracts X 5$ per tick or $20 per tick. That is equivalent to $80 per point as each point consists of 4 ticks.
Each winning trade is therefore: $80 per point (4 ticks per point X $20) X 3 points or +$240 total gain per each winning trade shown in the total.
Each losing trade is therefore: $80 per point (4 ticks per point X $20) X 2.50 or -$200 total loss per each losing trade
We take the total number of winning trade setups and multiply times $240 and the total number of losing trade setups and multiply times $200 subtracting the Losing Trade total from the Winning Trade total.
Then commission is subtracted using the total amount of round turns (4 contracts per trade setup) times $3.75 ($15) which is the average brokerage commission cost for trading NQ. Commission may vary across brokerages some slightly higher and some slightly lower.
September 2013
Total Amount of Core Trade Setups |
X |
Core Setups Gain with % |
X |
Core Setups Loss with % |
X |
Total Estimated Commission Cost |
X |
Total Hypothetical Gain for the Month |
X |