The LS Trader System has ended the year with the best performance that the system has managed in single year. At the end of the trading year (I use the end of the week for calculating account equity, so although this week starts on the 29th, it ends on Friday 2nd January so last week was the last full trading week of the year) we ended up with an incredible gain of 1504.1% for 2008. This beats the previous best which was around 1200% set in 1987.

This worked out as follows based on the £1 million model account:

Starting equity (Week 1 2008) = £1,000,000 Closing equity = £16,041,903 Equity gain = £15,041,903 Percentage gain = 1504.1%

For all LS Trader subscribers who have followed the system as directed, well done. You will have been rewarded with outstanding performance on your account. A £10,000 starting bank would have netted you £150,400 profit!

For those that did not follow the system, you need to ask yourself why not? This is the time to think about this clearly and to resolve to follow the system more precisely in 2009. In my own trading, I aim for zero variance. This means that I follow the system exactly as per the rules, every time and without question. It’s not always easy to do, but it’s the best and most profitable way to trade.

The LS Trader model account balance will now be reset to £1 million as per every other year. We will again use 2% risk per trade on the model account, which at the start of the year will equate to £20,000 per trade. This will fluctuate based on the account equity throughout the year but will always be 2%.

You can still join us, and start making these phenomenal profits today. To join the LS Trader system, click on the link below:

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The Financial Spread Betting Week In Review

It’s been another busy week for the LS Trader system. This week we closed 8 trades and rolled over 1 trade into the next contract. The one rollover trade we had banked a nice 569 points and the other trades were for the most part net profitable. These trades included Live Cattle, Wheat, Corn and Oats, all of which were very profitable if you include the points from previous rollovers (which you must do to assess the profitability of a trade)

This took our banked financial spread betting points (or pips as some people prefer to call them) for 2008 back to 88,238.55. This works out to be 241 pips per day profit!

This past week was last full trading week of the year and our system’s performance has been outstanding. The gains for the year closed at 1504.1%. This is slightly off the highs we set a couple of weeks ago when we set an equity high with a gain of 1650%.

Stocks

So far we have not seen any resemblance of Santa Claus rally (an event which usually happens in the stock market during the last 5 trading days of the year and the first 2 trading days of the New Year. As I have written previously, when this rally fails to materialize, it usually means that stocks don’t perform too well the following year, and often precedes bear markets. The Santa Claus rally did not happen last year (Xmas 2007) and we had a bear market this year (an event when stocks are down in excess of 20%).

Commodities

Commodity markets were mostly higher for the week which caused us to exit some of our short commodity trades. As regular readers will know, although we have spent some months shorting the commodity markets this year (and very profitably so) I am still long term bullish on commodities and expect commodity markets to move higher again in 2009. In fact, once commodity prices get past the current sell of phase, I expect prices to continue to rise for the next 5 years at least. Obviously during that period there will be some corrections along the way as markets rarely go up or down in straight lines.

Interest Rate Futures

Interest rate futures continue to do well, holding at or around new contract highs. Yields are still at or very near record lows. This is one market sector that has done really well the past few months and may continue to do so for the near future. Later in 2009 we could see corrections in these markets and I can see us making some profitable short trades in this sector before 2009 is out.

Shortened Trading Week Ahead

This week being New Year is of course a shortened trading week with the markets closing early on the 31st and closed all day on the 1st. Markets are then open again on the 2nd.

I would like to take this opportunity to wish all my subscribers a very happy and prosperous New Year. If 2009 is anywhere near as profitable for The LS Trader system as it has been in 2008 then we will all be doing very, very well.

Good luck in your trading