Several Nasdaq trading system portfolios are now in drawdown after reaching equity peaks earlier this month, creating a more disciplined setup point for traders reviewing Monday’s session.
This week gave us the type of market environment that often separates disciplined system trading from emotional decision-making: a holiday-shortened trading week, FOMC volatility, and a significant amount of intraday noise.
Markets do not move in one consistent rhythm. There are periods when price action is more favorable for trend, countertrend, and mean-reversion strategies. There are also periods when the market becomes choppy, random, and less favorable for systematic execution.
We do not attempt to predict the perfect entry point. That is not the purpose of algorithmic trading.
Instead, one practical way to manage entry timing is to wait for a drawdown in the portfolio equity curve before starting, restarting, or increasing allocation.
The Nasdaq portfolios were at or near equity peaks across the board on June 5, 2026. After this week’s normal drawdown cycle, several portfolios are now showing drawdown entry levels worth reviewing before Monday’s trade session.
Current Hypothetical Drawdown Levels
Current hypothetical drawdown levels measured from the most recent equity peak:
| Portfolio | Current Drawdown | Historical Max Drawdown Since 2017 |
|---|---|---|
| 25 System Portfolio NQ | $40,615 | $73,955 |
| 18 System Portfolio NQ | $24,310 | $54,390 |
| 7 System Portfolio NQ | $14,445 | $27,125 |
| 3 System Portfolio NQ | $6,635 | $19,690 |
| 2 System Portfolio NQ | $8,425 | $15,265 |
These figures are based on hypothetical performance results and historical portfolio research back to 2017. They are provided for educational and informational purposes only. They do not represent live account performance and are not a guarantee of future results.
Three Reasons We Prefer Starting on a Drawdown
1. Mathematical Risk Management
Starting at an equity peak means the full historical drawdown risk remains ahead of the trader.
Starting after a drawdown may reduce the distance between the current equity level and the historical worst drawdown level, assuming the portfolio eventually recovers. This does not eliminate risk, and a new maximum drawdown can always occur, but it can provide a more measured entry framework than chasing the portfolio at new highs.
As index levels increase over time, we also expect daily dollar ranges and portfolio drawdown levels to expand. That makes entry discipline increasingly important.
2. Margin for Technical Errors
Automated trading is not just about strategy logic. It is also about execution.
Even with a disciplined setup, occasional implementation issues can occur: missed trades, platform issues, connection interruptions, broker routing delays, or user-side configuration errors.
Sometimes an execution issue can work in the trader’s favor, such as missing a losing trade. Other times, it can work against the trader, such as missing a winning trade that was part of a portfolio recovery cycle.
Starting during a drawdown may provide a practical buffer for these real-world imperfections. It does not remove execution risk, but it can reduce the pressure of initiating a portfolio exactly at its highest equity point.
3. Reduced Friction from Slippage and Commission
If a trader avoids part of a losing sequence and starts during a drawdown, the recovery back toward equity highs may improve the average net trade result over that specific cycle.
That matters because slippage and commission are fixed frictions that reduce net performance. A stronger recovery cycle can help absorb those costs more efficiently than starting immediately before a losing sequence.
Again, this is not a prediction. It is a portfolio-entry framework.
The Main Idea
Starting on a drawdown is similar to “buying the dip” in the equity curve of a trading system portfolio.
It does not guarantee a recovery. It does not prevent future losses. It does not mean the portfolio cannot experience a new historical drawdown.
But it does create a more disciplined entry process than starting only because a system is at new highs.
Prepare for Monday’s Trade
Review the portfolio drawdown levels, confirm platform setup, and decide whether a drawdown-based entry aligns with your risk tolerance.
Hypothetical Trading System Signals on 06-18-2026
Below are the latest hypothetical trading system signal results for Thursday, June 18, 2026:
- 25 System Portfolio NQ = -$9,265
- 7 System Portfolio NQ = -$2,805
- 3 System Portfolio NQ = -$2,655
- 2 System Portfolio NQ = -$2,655
- 18 System Portfolio NQ = +$500
- Diversified Portfolio 57, NQ Only = +$500
- Silver Portfolio = -$3,325
- 50K Portfolio, Micros = -$688, without Gold and Silver
Next Step
Review the portfolio pages above, compare the current drawdown levels, and contact us to discuss setup options for Monday’s trade session.
Prefer Auto Trade?
For traders who prefer not to self-execute the signals, our Auto Trade option may provide a more hands-off implementation path.
Auto Trade can help reduce the day-to-day burden of monitoring signals, placing trades, and managing platform execution manually. This may be especially useful for traders who want exposure to the trading system portfolios but do not want to operate TradeStation, NinjaTrader, or MultiCharts throughout the session.
Automated execution does not remove trading risk, execution risk, technology risk, slippage, or the possibility of losses. However, for qualified traders who understand the risks, it may provide a more structured way to follow the portfolio signals.
Risk Disclosure: Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Actual results may differ materially from hypothetical results. Futures trading involves substantial risk and is not suitable for all investors. Past performance, whether actual or hypothetical, is not necessarily indicative of future results. Drawdown figures are based on end-of-day calculations and do not reflect intraday drawdowns. Only risk capital should be used for futures trading.