Full Strategy Analysis, Portfolio Tools, and Q4 Trade Setups

Watch the Portfolio Review

The video reviews each of the 18 Nasdaq strategies back to 2020, including slippage and commissions, then turns to the combined portfolio equity curve, the current drawdown, and the tools used to check those results.

Inside the 18-System Portfolio

The 18 System Portfolio NQ combines algorithmic Nasdaq futures strategies with different trading styles, market behaviors, and sources of return.

The portfolio includes a combination of:

• Trend-following strategies
• Countertrend strategies
• Mean-reversion strategies
• Breakout strategies
• Asymmetric trading strategies
• Strategies using Nasdaq market internals

The video reviews each system on its own: strategies near equity highs, strategies in drawdown, and strategies that have recently recovered from significant drawdowns. An individual strategy can move sideways or go through an extended drawdown before the next favorable market regime. Some systems in the portfolio have already done that: a worst-case historical drawdown, then a significant recovery. Others are near equity highs and others are showing short-term weakness.

That is why the review looks at both the individual trading systems and the combined portfolio, rather than a single strategy.

The same portfolio is checked in three analytical tools so the equity and drawdown profiles can be compared.

Each tool approaches the portfolio differently. The overall equity and drawdown profiles remain consistent.

Current Portfolio Position

Sharp drawdowns have occurred in the portfolio before, and in some cases they were followed by equally sharp recoveries.

As Nasdaq index values increase, dollar volatility can increase with them. Dollar drawdowns may become larger even when the percentage risk profile stays relatively similar. One way to adjust exposure is to use Micro E-mini Nasdaq futures to scale position size.

January and March were the two losing months in that stretch. October began with a portfolio drawdown, which is another chance to compare the current market with earlier drawdown cycles.

Portfolio Construction and Diversification

A larger portfolio can be reduced to a smaller custom configuration. In the video, the 18-system portfolio is cut to an 11-system mix with a more balanced blend of:

• Trend strategies
• Countertrend strategies
• Mean-reversion strategies

That lets a trader fit the portfolio to account size, risk tolerance, and preferred strategy mix.

No single trading methodology performs well in every environment. Trend-following strategies may do their best work in sustained directional moves, while mean-reversion and countertrend strategies can benefit from other kinds of price behavior. Combining systems with different logic is meant to keep the portfolio from depending entirely on one market regime.

Strategy Research and 2026 Updates

Ongoing research is part of maintaining an algorithmic portfolio. Two potential strategy updates discussed in the video:

Q4 Outlook

The market environment entering Q4 remains unusual. Nasdaq futures have seen stretches of sideways price action interrupted by sharp directional moves. That kind of tape can be difficult for some strategies and useful for others.

The 18 System Portfolio is the framework for watching the individual systems, evaluating portfolio-level drawdowns, testing other combinations, and continuing the research on possible strategy improvements.

The data in this review runs through October 2, 2026.

Learn More

Learn More About the 18 System Portfolio NQ

Visit Capstone Trading Systems for algorithmic futures trading systems, Nasdaq portfolios, strategy research, and systematic trading tools.

Risk Disclosure: Futures trading involves substantial risk of loss and is not suitable for all investors. Hypothetical or simulated performance results have inherent limitations. Past performance is not necessarily indicative of future results.