The table below provides essential insights into the trading performance for the 12 months ending March 2024. It includes starting and ending capital, indicative annualized returns (AR), monthly trade frequency, and win ratio, all after accounting for trading costs like brokerages, levies, and taxes.
(Table 1.1 - Backtesting Results for 5 Commodities over 1 year)
Key Highlights:
Commodities Covered: Zinc, Copper, Aluminium (Metals), Crude Oil, and Natural Gas (Energy). Silver has been excluded due to its high volatility, making it unsuitable for beginners.
Ranking by Annualized Returns (AR): Commodities are ranked based on AR (green column).
Win Ratio: Represented in the blue column, indicating the ratio of winning trades to total trades, averaging around 75%.
Performance Overview:
Natural Gas: Leads with an AR >250%.
Zinc and Copper: Both yield over 120%.
Crude Oil: Delivers an AR of 100%.
Aluminium: Provides the lowest return at 70%.
These results, though subject to market dynamics, suggest the potential to double your capital annually. With a win ratio of approximately 75%, three out of every four trades are profitable, underscoring the effectiveness of our proven trading setups.
Conclusion
The impressive annualized returns highlight the viability of trading commodities as a lucrative career. To explore further and discover what it takes to gain the winning edge in trading these commodities professionally, click on "Next Post".
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