www.zentrader.de

“We do not see the things, how they are, but as we are.” (Edward Allen Toppel)

One, perhaps the only possible method to switch the “Ego” off while trading at the markets and come to a correct decision on the basis of an objective perception is the use of so-called mechanical trading systems.

The Zen Trading System is a high performance Xetra Dax Index trading system concerning daily price data (EOD or “end of day”).

Technically it is a compact Windows software product, which has apart from the generation of signals also a system tester functionality. Optionally the product contains a Windows standard DLL, which makes possible program integration in existing solutions (e.g. for automated trading).

An overview and technical information can be found here: Zen Trading System Flyer. The following two films show the use of trading signal generation and the system tester.

The Zen Trading System v1.7e achieved from 01/01/2000 to 12/31/2008 more than 23,000 Dax points and is publicly licensed since january 2009. Data concerning system tests as well as additional tests via Monte Carlo Simulation you can take from the report “Performance and ratios”.

Evaluations concerning the behaviour of the Zen Trading System in selected crisis situations:

• 9/11 2001 ( system protocol with trades list, evaluation and equity curve. )
• subprime crisis 2007 ( system protocol with trades list, evaluation and equity curve. )
• financial crisis 2008 ( ( system protocol with trades list, evaluation and equity curve. )
• Greece / EU crisis 2010 ( system protocol with trades list, evaluation and equity curve. )

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Current system performance of the “pure” trading system setup without stops, state 06/30/2010:

• 25,652 Dax points (since 01/01/2000)
• annual performance (pre-tax return): 48%
• max. DD versus trading capital (risk): 25%

( system protocol with trades list, evaluation and equity curve. )

Direct comparison with the Dax Index (without leverage!):

• German Dax Index since 2000: -14%
• Zen Trading System since 2000: +369%

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Scenario for trading with risk management (Test conditions: 25,000€ trading capital, position size 5 CFD contracts equal to 20% of the size of one Dax Future contract, proprietary volatility stops, EOD trailing stop, 1 point round turn transaction costs, no stops out of the main trading time data basis of the german Xetra Dax Index), state 06/30/2010:

• 27,824 Dax points (since 01/01/2000)
• annual performance (pre-tax return): 53%
• max. DD versus trading capital (risk): 17%

( system protocol with trades list, evaluation and equity curve. )

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Scenario for trading with risk management and additional money management using a simple pyramiding model (initial position 100%, maximum pyramiding to 200%), state 06/30/2010:

• additional profit improvement of 38% !
• annual performance (pre-tax return): 73%
• max. DD versus trading capital (risk): 32%

( system protocol with trades list, evaluation and equity curve. )

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The performance of the Zen Trading System is listed in the table below for each year of the evaluation period 2000-2010 (conditions: 25,000€ trading capital, position size 5 CFD contracts, no stops, 1 point round turn transaction costs):

Year Dax points Performance 2000 2283 45% 2001 2353 47% 2002 4511 90% 2003 2664 53% 2004 737 14% 2005 508 10% 2006 1569 31% 2007 4491 89% 2008 3350 66% 2009 644 13% 2010 (until 6/30) 857 34%

The average annual performance is 46%, the max. DD based on the trading capital size (ie the temporary risk) is ca. 26%, the MAR ratio (“return to risk ratio”) is 1.79 !

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The performance of the Zen Trading System alternatively traded using risk management methods (ZTS volatility stops and EOD trailing stops):

Year Dax points Performance 2000 1994 39% 2001 2228 44% 2002 4790 95% 2003 3044 60% 2004 1258 25% 2005 1177 23% 2006 2142 42% 2007 4430 88% 2008 4197 83% 2009 1009 20% 2010 (until 6/30) 1173 47%

The average annual performance is 53%, the max. DD based on the trading capital size (ie the temporary risk) is ca. 17%, the MAR ratio (“return to risk ratio”) is 3.10 !

If you need specific evaluations or system tests with/without stops, transaction costs etc., please send me an E-Mail to info@zentrader.de .

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=> Which advantages does the Zen Trading System have in relation to the competition?

1. The system shows very high annual results of performance in all trading models (thus without stops, with stops and/or with pyramiding). A comparison with the most well-known rank lists ( www.futurestruth.com , www.striker.com ) is documented in the report “Performance comparison”.

2. You can not only trade the german Dax Index with the system, but also the famous german Dax Future (´FDAX). Review and tests see here: FDAX test

3. The signals, trades and performance computations always take place for the close price of the appropriate day (if no stops take place). This ensures both: a realizable trading in practise and a correct performance analysis!

4. Apart from the signal generation the software has also its own system tester, in order to be able to test the system setup with different settings and alternative price data sources. The separation of program and data allows also the verifiability of the published system performance!

5. It takes only a few minutes a day for data update and signal generation. So you can trade really comfortable using this system with instruments like CFDs, index certificates, warrants, futures etc.

6. Because this is a purchase software, you pay only once and during the future use there are no additional costs for you. A further advantage of this solution is, that you aren’t dependent from the system supplier or the temporal availability of his trading signals!

7. An additional standard Windows DLL component allows the program integration in existing software or trading platforms, e.g. for the realization of automated trading.

Free demo versions are available in the Support section (download area).

starting at €1,000 ... order now! (Here you can find order information and license prices)

© Dipl.-Ing. Volker Butzlaff