Final Results: 12/07/2006
In January 2005 the Breakout Portfolio was discontinued in favor of the Hop & Pop Breakout Portfolio,
which holds positions longer and therefore enjoys a larger on
average gain per position.
The Breakout Strategy was employed from February 2002 through January 2005.
A total of 470 trades were made using the Breakout Portfolio strategy. These trades resulted in a cumulative gain of 366.5%.
237 trades resulted in a total gains of 1,490% or an average of 6.3% on each winning trade.
232 trades resulted in a total loss of 1,124%, or an average loss of 4.8% on each trade.
251 of the 470 trades were long trades resulting in a
cumulative gain of 208%
132 of the long trades were closed for gains totaling 815% or
an average of a 6.2% gain on each trade.
118 of the long trades were closed for losses totaling -606% or
an average of a 5.1% loss on each trade.
On average, long trades were held for just 12 days.
219 of the 470 trades were short trades resulting in a
cumulative gain of 158%
105 of the 219 short trades were closed for gains totaling 676%
or an average of 6.4% on each trade.
114 of the 219 short trades resulted in losses totaling 517% or
an average of 4.54% on each one.
The chart below shows theoretical portfolio performance of the TTO Breakout Trading Strategy vs. the S&P 500 and NASD Composite. The strategy
proved highly successful during the disastrous 2002 bear market
and ensuing recovery. While the performance line flattened out
over the course of 2004, this was mostly due to a shift in
philosophy. In 2003 we launched the Hop & Pop approach, which
holds positions longer seeking larger per trade gains.
Jim Patterson
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