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Trading Strategy of the Week: Wave Chaos

Learn more about 
“WAVE CHAOS”Currently ranked in the Top 1% of strategies on Collective2All results are hypothetical. Remember that trading is risky, and most people who trade lose money.Wave ChaosHypothetical Cumul. Return +42.1%Trades: Stocks

About the strategy manager

MarselSalahov lives in Russian Federation.

He joined Collective2 on May 2019.

He ranks in the top 5% of Trade Leaders on Collective2.Followed byand 3 othersFOLLOW AT YOUR BROKERAn Interesting Fact about
Wave Chaos

The strategy wins only 

48.7%

of its trades.

But it performs well because its average winning trade is $1,012, while its average losing trade is only $381. 

Many good strategies have this characteristic. SEE STRATEGY“Collective2 will overthrow traditional hedge funds. Collective2 will revolutionize finance. Collective2 will place its stamp on world history. Of this, I am certain!” 
– Abigail Klein, mother of Collective2 Founder Matthew Klein

About the results you see on Collective2

Past results are not necessarily indicative of future results.

These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical 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 these being shown.

In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program, which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

You may be interested to learn more technical details about how Collective2 calculates the hypothetical results you see on its web site.

Trading is risky

There is a substantial risk of loss in futures and forex trading. Online trading of stocks and options is extremely risky. Assume you will lose money. Don’t trade with money you cannot afford to lose.

Material assumptions and methods used when calculating results

The following are material assumptions used when calculating any hypothetical monthly results that appear on our web site.

•   Profits are reinvested. We assume profits (when there are profits) are reinvested in the trading strategy.

•   Starting investment size. For any trading strategy on our site, hypothetical results are based on the assumption that you invested the starting amount shown on the strategy’s performance chart. In some cases, nominal dollar amounts on the equity chart have been re-scaled downward to make current go-forward trading sizes more manageable. In these cases, it may not have been possible to trade the strategy historically at the equity levels shown on the chart, and a higher minimum capital was required in the past.

•   All fees are included. When calculating cumulative returns, we try to estimate and include all the fees a typical trader incurs when AutoTrading using AutoTrade technology. This includes the subscription cost of the strategy, plus any per-trade AutoTrade fees, plus estimated broker commissions if any.

“Max Drawdown” Calculation Method. We calculate the Max Drawdown statistic as follows. Our computer software looks at the equity chart of the system in question and finds the largest percentage amount that the equity chart ever declines from a local “peak” to a subsequent point in time (thus this is formally called “Maximum Peak to Valley Drawdown.”) While this is useful information when evaluating trading systems, you should keep in mind that past performance does not guarantee future results. Therefore, future drawdowns may be larger than the historical maximum drawdowns you see here.Collective2 LLC
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