MTG Historical Trade Statistics


The Wagner Daily performance results (ETF trades)

MTG Stalk Sheet performance results (stock trades)

• Model account size -
  
  
  • The Wagner Daily model account size - The share size displayed for each trade is based on a cash model account of $50,000 ($100,000 total buying power with overnight margin). Based on the model account size, MTG predetermines the share size of each ETF trade by assuming a maximum capital risk of $1,000 per trade. This equates to a maximum risk of 2% of account equity for each ETF trade. If, for example, MTG enters a new trade that requires a two-point stop loss, the maximum position size will be limited to 500 shares (500 shares X 2 points = $1,000 max. risk). Position size for each trade is always reported to subscribers ahead of time so that they may easily determine their own position size based on the size of their own trading accounts. A subscriber who has an account with a cash value of $25,000 could simply use 50% of MTG's predetermined share size for their own account.
    
    
  • MTG Stalk Sheet model account size - The Stalk Sheet model account is similar to the Wagner Daily model above, except that it is based on a cash value of $100,000 ($200,000 buying power with margin). However, the maximum dollar risk per trade is the same, at $1,000 per trade. This means the Stalk Sheet trades are limited to a maximum capital risk of only 1%, compared to the 2% maximum risk of each Wagner Daily trade. This is simply because the Stalk Sheet is more actively traded, so the model is exposed to more simultaneous open positions than The Wagner Daily.
    
    With both model accounts, it is important to understand that MTG firmly believes in maintaining the same maximum capital risk for each and every trade, regardless of how good the trade setup may appear. Traders who "swing for the fences" on any one trade are generally not successful in the long-term. Rather, consistently profitable traders are successful because they constantly work a small mathematical edge on a large number of trades. Realizing a gain of several percent each month is much better than making 25% one month and losing it the next. This conservative approach is why MTG's performance has been consistently profitable over the years, with only minimal and brief drawdowns along the way.
  
  
• Commission fees - In order to accurately simulate a real trading account, brokerage commission fees are automatically factored in to all trade results. While commission fees vary greatly from one broker to another, our trade stats assume a commission fee of 1 cent per share. This is in line with commission fees at many firms who specialize in servicing active traders. If you are an active trader and paying "per trade" fees, you should consider switching to a brokerage firm who charges "per share" commission fees because your savings can be substantial, especially with smaller accounts. MTG has no financial affiliation with any specific brokerage firm, but TradeStation and MB Trading are two such firms that offer both high quality chart analysis software and competitive trading commission fees. There are many others.
  
  
• Average pricing - Because MTG sometimes scales in or out of a trade at various price levels, average entry and exit prices are automatically reported, rather than each individual buy & sell price for partial shares of the same trade. Italicized text on the trade detail pages indicates an average price was used. Similarly, an individual trade date in italics indicates that MTG scaled in or out of the trade over the course of several days.
  
  
• Scratches - All trades that resulted in a net gain or loss equal to or less than $100 (including commissions) are not included in our performance results because those trades are each considered to be a "scratch." By excluding both winning and losing trades of such a small amount, one can more easily make an accurate analysis of key statistics such as win/loss ratios, avg. gain/avg. loss ratios, etc.
  
  
• Hypothetical results - The performance results and share sizes reported are hypothetical and for educational purposes only. The goal is for a trader to learn how to properly manage risk in their own accounts. Unlike the actual performance record of the Morpheus Capital hedge fund, these hypothetical results do not represent actual trading. Realistic execution prices are used, but trades have not actually been executed. Therefore, results may vary due to market factors including lack of liquidity, slippage, and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those reported. Morpheus Trading Group may or may not have actual positions in the ETF and stock trades it presents to subscribers. Similarly, the Morpheus Capital hedge fund is typically positioned in many more trades than are actually presented to newsletter subscribers.