Missing computations…

March 29, 2012, beginning balance: 32,800 BEL, 350 SCC, 4,100 ICT. 22,000 AGI, 6,900 DMC. 32,325 Pesos Cash.

(22,000 x 12.68) + (6,900 x 52.95) = 644,315.

32,325 + 644,315 = 676,640 Pesos Cash.

22,292.60 / (5.86 – 5.6) = 85,740 shares recommended to buy. Round up 86,000. 5.86 x 86,000 = 503,960 Pesos.

676,640 – 503,960 = 172,680 Pesos Cash.

Final Position: 32,800 BEL, 350 SCC, 4,100 ICT, 86,000 EDC, 172,680 Pesos Cash.

March 1, 2012 Portfolio Value: 1,114,630 Pesos.

March 30, 2012 Portfolio Value: 168,264 + 85,680 + 268,550 + 516,000 + 172,680 = 1,211,174 Pesos.

1,211,174 / 1,114,630 = 1.0866. An 8.66% gain in 1-month. Trend-following systems won’t earn you the highest possible profits in the least amount of time. Instead, they’ll keep you out of trouble, and give you decent gains over time, as long as you trade markets that are liquid enough and trend enough.

Keep in mind that this type of trading is not for all. Interested traders must be able to psychologically withstand the system being wrong more often than not, and then hang on to the few outsized gains as pre-planned. Sometimes, large paper profits may vanish even when all the rules are properly followed, this can be very difficult to take. Keep trading the right way, because often the best trend-following gains follow the darkest periods.

Happy trading! 🙂

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