V-Reversal started the month with a nice short trade. Gap Continuation was stopped out 3 minutes into the trade after a tariff news flash. The market ultimately traded lower anyway. Gap Continuations have been one of our top strategies to capture strong trends but has been stopped out and some quick adverse excursions in April.
The NQ Two System Portfolio is in a 9,250 out of 17,390 drawdown. This is a drawdown entry alert point to start at a level that is not at equity peaks and the risk to worse case drawdown is lower than starting at equity peaks.
Two System Portfolio Hypothetical Drawdown Curve since 2017
The bull run in April was one of the strongest bull runs we have seen with very little mean reversion intra-day. V-Reversal is over 80% of our trades in the Two System Portfolio. My observation for the price action in April was that it was not typical and a pretty extreme deviation from the norm.
Cobra is one of my oldest strategies originally developed over 20 years ago for the E-mini S&P. The two Cobra III strategies in the Nasdaq that are in our portfolios hit equity peaks this week.
NQ SR Breakout has been one of the hottest strategies but has gone through a rapid cyclical drawdown for a nice drawdown entry alert with a long winner yesterday.
Algorithmic trading system portfolios are developed by combining strategies that are in a drawdown with strategies at equity peaks or in a runup. The combined results improve the sum of the drawdowns of all strategies since they have different methodologies and trade in different cycles.
The Seven System Portfolio has quietly performed well trading strategies like NQ Pulse, VSD Divergence,
The Three System Portfolio is the Two System Portfolio with Open Range 2026 and is in a drawdown entry alert as well.
When trading any methodology, some months it seems like everything you are doing goes against you. I am looking forward to a new month and new week for Monday's trade.
Hypothetical Trading System Signals on 05-01-2026
25 System Portfolio NQ = -$900
7 System Portfolio NQ = +$2,370
3 System Portfolio NQ = -$125
2 System Portfolio NQ = +$125
Stock Index Portfolio 18 = -$495
Diversified Portfolio 57 (NQ Only) = -$550
Silver Portfolio = -$5,100
50K Portfolio (Micros) = -$771 (without Gold and Silver)
The Silver Portfolio is in a 39K out of 53K drawdown alert as well. Silver can be less liquid. The benefit to starting in a drawdown is the risk to worse case drawdown is lower and if it bounces, the average trade profit is higher to buffer more slippage.
Average trade profit is a key number in short term trading systems that averages all trades, winning and losing. During a drawdown, the number is very negative and well below the average. During a runup, the number is greater than average.
Silver Portfolio Hypothetical Drawdown Curve
