Keystone Overview

 

Keystone is a suite of trend and counter-trend systems based on commonly known principles of market behavior. 

 

As with all of our systems, both Buy and Sell signals are mirror images of each other.  Keystone is not optimized for a buy or sell bias.  Similarly, exits are exactly the same for both long and short trades.

 

Keystone is an active system and trades up to twice per day.  All Keystone positions are exited before the end of day, eliminating any overnight risk.  Keystone will very rarely reverse positions during a single trading day.

 

Our view is that a robust Stock Market Index trading system should trade well across multiple indices without any modification.  Even though future success is never guaranteed, we feel this additional level of robustness provides the best likelihood of future success.  While designed strictly on SP500 Index data, Keystone meets this stringent requirement.

 

Keystone began live trading in the SP500 in January, 2004.  The following are hypothetical equity results for trading one S&P Emini, Russel 2000 Emini, or Mid-Cap Emini contract through December 31, 2005.  Thirty dollars have been deducted per trade to represent commissions and fills.  Percent returns are based on a $14,000.00 account.

 

 

EMini SP500 Hypothetical Periodical Returns: Annual

Period

Net Profit

% Return

Profit Factor

# Trades

Profitable

1/1/2005

$9,297.50

66.41%

1.65

178

57.87%

1/1/2004

$7,567.50

54.05%

1.43

189

55.03%

1/1/2003

$11,940.00

85.29%

1.67

187

57.22%

1/1/2002

$16,325.00

116.61%

1.60

180

58.89%

1/1/2001

$9,640.00

96.40%

1.44

147

57.14%

 

 

EMini Russell 2000 Hypothetical Periodical Returns: Annual

Period

Net Profit

% Return

Profit Factor

# Trades

Profitable

1/1/2005

$11,000.00

78.57%

1.38

189

56.08%

1/1/2004

$12,140.00

86.71%

1.48

191

52.36%

1/1/2003

$3,400.00

24.29%

1.15

171

57.31%

1/1/2002

$3,360.00

24.00%

1.12

174

52.30%

 

 

EMini MidCap 400 Hypothetical Periodical Returns: Annual

Period

Net Profit

% Return

Profit Factor

# Trades

Profitable

1/1/2005

$11,000.00

78.57%

1.59

176

60.23%

1/1/2004

$7,520.00

53.71%

1.38

164

57.32%

1/1/2003

$6,690.00

47.79%

1.35

180

52.22%

1/1/2002

($2,570.00)

-18.36%

0.90

128

48.44%

 

 

 

Our minimum account recommendation for most traders is $14,000.00 per E-Mini contract traded.  A commensurate recommendation for the full-sized SP500 contract is $70,000.00 per contract traded.

 

Markets constantly change, and as such Keystone is updated periodically to take into account evolving conditions.  Such updates happen on average once per year.  Keystone was last updated in March of 2006, at which point it was submitted to Futures Truth for tracking.

 

 

 

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Disclaimer Regarding the Many Illustrations of Systems and Performance Results in This Publication:

THERE IS A SIGNIFICANT RISK OF LOSS IN FUTURES TRADING. THE USE OF STOP ORDERS DOES NOT GUARANTEE LIMITED LOSS. HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS.  UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING.  ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY.  SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT.  NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

 

 

Last updated March 12, 2006.

 

Copyright © 2006 Founder Trading.  All rights reserved.