The 18 System Portfolio was finalized in May 2025. The latest results therefore represent approximately 15 months of out-of-sample performance with no changes to the portfolio's strategy composition.
As Nasdaq index levels increased and market noise expanded toward the end of 2025 and into the first part of 2026, the portfolio's maximum dollar drawdown also increased. However, that change needs to be evaluated alongside the portfolio's profit growth.
Net profit in 2026 is currently outpacing the portfolio's average annual profit from 2023 through 2025.
The 18 System Portfolio has also produced 14 new equity-peak days in 2026, the most among the portfolios we currently track. Four of those equity peaks occurred last week alone.
We evaluate the portfolio from several different perspectives because no single drawdown or performance calculation tells the entire story. Below are three of the primary tools we use to analyze combined equity curves, closed trades, open trades, and portfolio-level risk.
1. End-of-Day Combined Equity Curve
18 System Portfolio
$25 Round-Turn Slippage and Commission
January 1, 2017 – August 10, 2026
Our primary portfolio risk measurements are based on the combined end-of-day equity curve. This gives us a consistent way to compare portfolio growth and drawdowns across multiple strategies operating simultaneously.
2. Closed-Trade Portfolio Analysis
18 System Portfolio
Portfolio Metrics Closed-Trade Analysis
$25 Round-Turn Slippage and Commission
January 1, 2020 – August 10, 2026
We also use the Portfolio Metrics tool to analyze combined trade statistics and closed-trade drawdowns.
While our primary risk framework uses end-of-day portfolio drawdowns, closed-trade analysis provides another useful perspective. It allows us to evaluate metrics such as average trade profit, win rate, trade distribution, and closed-trade drawdown across the portfolio as a whole.
3. Open-Trade Drawdown Analysis
18 System Portfolio
MultiCharts Portfolio Trader
$25 Round-Turn Slippage and Commission
January 1, 2020 – August 10, 2026
MultiCharts Portfolio Trader adds another layer of analysis by measuring open-trade drawdown. This is a more granular risk measurement because it captures adverse movement that can occur while positions are still open rather than waiting until trades are closed or the trading day has ended.
Looking at end-of-day, closed-trade, and open-trade drawdowns together provides a more complete picture of how the portfolio behaves through different market environments.
Why Has the 18 System Portfolio Performed Differently?
One of the primary characteristics that distinguishes the 18 System Portfolio is its combination of strategy diversity and lower pairwise correlation.
The portfolio contains fewer duplicate variations of essentially the same strategy and instead combines systems designed to capture different market behaviors, trade structures, and opportunities.
The objective is not to find one strategy that works all the time.
The objective is to combine multiple independent or partially independent trading edges so that periods of weakness in one strategy can potentially be offset by strength elsewhere in the portfolio.
We discussed this concept in considerably more detail in: Portfolio Correlation Studies and Out-of-Sample Analysis .
A Changing Source of Returns in 2026
Another important development this year has been the changing contribution from long and short trades.
At the end of July, we discussed how short trades had generated the portfolio's net profit in 2026. That changed as August began.
Since August 1, long trades have led the portfolio higher and contributed to a new series of equity peaks.
This is one of the reasons we focus heavily on diversification across strategies and market conditions. Leadership within a portfolio can change. A strategy, trade direction, or market behavior that contributes very little during one period can become an important source of returns during another.
The goal of portfolio construction is therefore not simply to maximize the historical performance of individual systems. It is to combine multiple trading edges in a way that creates a more durable portfolio when those individual edges inevitably move through periods of strength, stagnation, and drawdown.