AlgorithmicTrading.net is a third-party trading system developer specializing in trading strategies, algorithm design, and automated trading systems. In the following article, AlgorithmicTrading.net reviews the Geronimo Trading System.
There are many investment trading strategies and unfortunately, none are foolproof. Automated trading has become increasingly popular and is currently the most common trading strategy in U.S. markets. Geronimo Trading System is one automated trading software that is offered by AlgotithmicTrading.net with a strong reputation and performance history.
AlgorithmicTrading.net reviews automated trading, including its advantages over traditional trading, the Geronimo Trading System and the algorithms it utilizes.
What is Automated Trading
Automated trading, also called algorithmic trading, uses computer software to recognize market trends and automatically execute trades based on pre-set parameters. Based on the rules that are written into the software program, trades are executed once certain parameters are reached.
AlgorithmicTrading.net reviews that automated trading based on rules and algorithms minimizes risk while maximizing profitability. One of the greatest advantages of automated trading is that it takes all emotion out of the equation when performing trades.
Often, traders make mistakes or divert from their investment plans based on fear or excitement. With algorithmic trading, humans set the rules and computers do all the trading, so the rules are guaranteed to be followed.
Another advantage of automated trading is that computers can generate orders immediately when certain parameters are hit so trades are made much more quickly than when they are created by human traders. AlgorithmicTrading.net reviews that faster transactions allow more orders to be made in a short amount of time.
Geronimo Trading System
AlgorithmicTrading.net reviews trades the on the S&P Emini Futures and S&P Emini Options markets.
Geronimo is the system with the lowest “per unit” trade size. AlgorithmicTrading.net reviews that traders can invest as little as $15,000, although an initial investment of $20,000 is recommended. It is a fully automated trading system and requires no time commitment.
It can be auto traded by one of the auto execution brokers who support the algorithm. An account can be fully set up in as little as one to two business days and the investment can be ended at any time as there is no holdout period.
AlgorithmicTrading.net reviews that Geronimo consists of three different algorithms, the Day Trade Long, the Day Trade Short, and the Weekly Put Spread. The Day Trade Long enters in the morning and does not hold overnight. It utilizes a very tight stop of $350. The Day Trade Short also enters in the morning and doesn’t hold overnight. It utilizes a tight stop of $500. to the two day-trade algorithms have traded live since about 2018.
AlgorithmicTrading.net reviews that the Weekly Put Spreads, also called the Geronimo Put Spreads, creates a 35-point bullish put spread which minimizes max losses. Bullish put spreads are used when there is expected to be a moderate increase in the price of the underlying futures instrument traded.
Because AlgorithmicTrader collects seven to eleven points of premium, there is a margin of error that allows trades to be profitable even if the direction of the market is anticipated incorrectly. AlgorithmicTrading.net reviews that if the market grows or stays the same, the trading system will be profitable and it can even realize some profit if it sells off a little.
Even if the market sells off strongly, the potential loss per trade is capped at the 35-point spread minus the premium collected. The Weekly Put Spreads algorithm has live returns going back to April 2020.
Geronimo has an average monthly rate of return of 4.75% and the average return per month is $901. It has a per-trade win rate of 63.2% and a monthly win rate of 62.5%. It averages 0.54 trades per day.
Back-Testing and Walk-Forward Testing
AlgorithmicTrading.net reviews that the back-tested dates of the Geronimo algorithms span from 1995 to 2020 and they have walk-forward results from 2020-2022. Back-testing looks at how well the algorithms would have performed using historical market data.
Walk-forward testing optimizes the parameters for a set of data and applies the values to the next set of untested data. It is a good indicator of future performance. Geronimo’s algorithms have been heavily forward tested and this is used to continually tweak and improve them.
Even though Geronimo has the lowest “per unit” trade size of AlgorithmicTrading.net’s trading systems, it is a strong system with proven results. Because it layers three separate algorithms, it can perform well under different market conditions. AlgorithmicTrading.net reviews that Geronimo is a valuable automated trading tool that minimizes risks while maximizing profitability.