Trading Model Performance for August

Another month has gone by trading "the model". I have further improved my trading rules and produced a decent performance for both the model and my account in August. The results in percent terms look like this:

NASDAQ 100 Index: 4.66%
Model(Improved Version): 8.36%
Trading Account: 15.26%

This means I captured 182% of the model's performance using about 3 times leverage. Before the improvements were added the model would have only been up about 5% and my performance captured 300% of that lower rate of return. As a result I earned $4700 for the month from trading vs. $3900 in July when the account gained 14.57% on the back of a model performance of 9.57% and a decline in NDX of 4.80%. This chart compares the model performance and the market action to date:



Clearly if you were short in early July and long in mid-August you would capture most of the model's gains.

It is going to take about 3 months from now, therefore, to achieve my goal of regaining all past trading losses on this account. In the meantime I am also saving up cash in my HSBC Online Savings account to open a futures trading account which will be the next adventure. But first I want to prove I consistently trade QQQQ profitably using the model over several months.