"Black Box Trading" ...... a computerized system that generates signals that trigger long or short trades automatically.

HAAN CAPITAL INVESTMENTS   "Black Box Systems"  Long/Short

This site is for "Accredited Investors", for informational and educational purposes only;

.......  to monitor the trading and net results of five automatic trading systems and not to be considered investment advice whatsoever. This a Black Box mutual learning experience.

HAAN CAPITAL INVESTMENTS  implements its own, unique "Black Box" trading systems that automatically trade (long or short) either the Dow or the S&P E-Mini futures.

We have no money under managemnet.  The results are from a hypothetical 100K simulation account. We use Tradestation's trading palatform and each of the five strategies below trades 100K  and assumes a 200K reserve for each. We are in the system development phase and hope you log on and follow our progress reports. We are not licensed members of the NFA or CFTC.

Past performance  is not indicative of future results.  Win or lose we will post the results.

                                                                  2008 Plus 226%

      This "Fave Five" entity (Below)  weathered the tough trading environment of 2008. Five separate systems with different strategies that fire off automatic trades according to their own set of optimized criteria. Our systems not only weathered the storm of 2008 they outperformed 99% of all hedge funds! Plus 226%!
 

      The colored box above contains the past 4 months hypothetical profit/loss results for five systems. Trading results for a hypothetical $100K for the S&P and Dow  E-mini will be posted each month. In reality, trading $100K requires an additional $200K for drawdown reserve. The  "Margin" for the S&P is now $6.1K per contract and margin for the Dow is $6.8K per contract. Trading $100K is now 15 contracts for the Dow and 17 for the S&P E-mini. These contract sizes and changes in margin are reflected in the above results.

Below is the Tradestation net performance report for trading an average $100K

(plus $200K reserve) on the DOW 30 Min  System for the 12 months of 2008 trading 20 contracts.

Chart created on Tradestation, the Flagship product of Tradestation Technologies.

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     Profits are generated using buy, sell and sell short strategies that have been rigourously back-tested to produce the highest net profits over the past eight years for the S&P and five years for the Dow. Each of the above five systems have a minimum of twelve different strategies wthin each system.

     We now have over one year of un-optimized raw data trading results under our belt. From past experience, optimized data cannot be depended on to produce consistent results going forward. Computer optimzation finds the best possible numbers to fit the historical data. This is only the first test of a system's success. The most important test of any system is how well it performs on new data.  

    If this were an audited return, trading real money, 2008 results would have put us on the top ten list of the most profitable hedge funds in the country.

     2008 return........+226% 

    The top Hedge Fund in 2007 returned 219% according to Barons.

    Since our sytems trade S&P and Dow futures, we technically would be considerd a "commodity pool", not a hedge fund, and governed by the CFTC and the NFA.

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Accredited Investors,

This is an opportunity to monitor the monthly net performance of a hypothetical "Black Box" system. The algorithms were written and developed by Ken Haan using TradeStation's "Easy Language". They were then back-tested using TradeStation's data feeds for the S&P and Dow. The "Fave Five" are the proprietary property of Quickstand Corp. The strategies are real and the simulation results are  posted on this website using TradeStation's platform. Slippage and commissions are accounted for within the net results. We always maintain 12 months of fresh data  or an "out sample" when optimizing and back-testing the systems. If the strategies continue to work on the fresh data we have a shot at having a solid system. So far so good.

Once you have monitored this website for a month or two and feel comfortable with the performance risks of trading automatic systems and futures, please contact us with your accredited investor information. Please send us an email 

if you have any questions.  

Our goal is to be live trading this system in 2009. We are currently working on our executive summary and business plan. When we have the business plan in place we will attempt to raise start up capital from either a private equity firm or an angel investor. For the time being these systems are available for tracking purposes only. In the near future we will be developing strategies to trade other products such as gold, the banking index, the dollar and other ETF's to further diversify and hedge the portfolio. The current malaise in the hedge fund industry is caused by the fact that they have lost sight of the meaning of the word "hedge".

A “Black Box” trading system is simply one that trades automatically by triggering set buy and sell orders based on technical indicators.  Many professional traders working for the larger hedge funds use this type of technology. A rough guess by a trader on CNBC last week was "about 40% of all trades are now "Black Box" trades".   HFR recently reported 1,700 billion (2008) was under management by over 10,000 hedge funds. Most are un-regulated funds using legal exemptions from the SEC. By remaining small (15 investors) and marketing only to accredited investors, a hedge fund can by-pass most regulatory requirements. For commodity pools, the NFA says you are exempt if the money invested or at risk is less than 10% of the total portfolio or if you have 15 or less accredited investors.

Our systems are based solely on technical indicators and do not trade on the whims of individual brokers, nor are they made up of  questionable stocks pushed by brokers working for the underwriters. By trading the indexes, we are trading a large pool of stocks more influenced by overall market trends than individual moves within a specific industry.  

One of our trading platforms trades the S&P 500 index and utilizes a combination of different “Strategies” that automatically trigger trades during the day, (9:30 AM to 4:15 PM).  The system is programmed to trade regardless of the direction of the market. That means that trades can be short or long the S&P index. In addition to the S&P, we also have systems that trade strictly the Dow e-mini (@YM). The net results of five systems, trading 12 months of raw daw, are shown in the green colored box above. We hope you log in and follow our progress. Please email your comments and accredited information so we can supply you with a future password.

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SEC Disclosure:

Past performance does not guarantee future results.  We do not promote any stocks or options of any kind on this site nor do we advise on any trades. There is substantial risk of loss trading futures. You need to determine your own suitability to trade futures and there may be tax consequences for short term profits/loss on trades. Consult your tax advisor for details if applicable. When trading futures there is the possibility of losing you entire portfolio.

The Haan Capital Investment Disclaimer:

     Hypothetical performance results (back tested strategies) have many inherent limitations, some of which are described below. No representation is being made that any account will achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are prepared with the benefit of hindsight and pre-existing data. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading, such as, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses or drawdown. Strict rules of money management are a must to survive large drawdowns. There are numerous other factors related to the markets in general and to the implementation of any specific trading program which cannot be fully accounted for in a trading simulation and  can adversely affect actual trading results. The internet connection itself can cause problems with signal delivery. The CBOT occasionally has problems with trading certain markets. Heavy storms in Florida often knock out the internet connection for short periods of time.

      HCI takes into account slippage and interest charges within the net results of any strategy. As a strict rule, HCI maintains a two to one ratio of reserve cash to trading capital to cover daily and monthly draw-downs. Example: To trade 17 contracts of the S&P E-mini’s costs roughly 103K. HCI requires an additional 200K in drawdown reserve to implement its trading system. (It is now $6.1K per ES contract and $6.8K per YM contract)  We are in positions overnight.

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      The material contained in this website is for your private information and we are not soliciting any action based upon it. The material is based upon information which we consider reliable, but we do not represent that it is accurate or complete, and should not be relied upon as such.  That said, we will continue to post the monthly Tradestation net performance numbers for a mutual  learning experience. We have no affiliation with Tradestation other than we use their very dependable trading software to implement and test our proprietary systems. Tradestation has been in business for over 15 years and their clearing house, R.J. O'Brien for over 35 years. When trading futures you have the real possibility of losing all your money. Risk vs. reward?