What to Expect When Using TradeGoose

As the Current Correlation value increases, Trade Goose will begin taking trades. (Always buying and selling correlated pairs simultaneously.) The higher the increase in Current Correlation, the more trades will be taken, up to four "Levels" of trades. As this occurs, your account will draw down.

Expect to have a drawdown. It is part of the hedge trading strategy. As Current Correlation increases, a fifth level is taken and the oldest level (level 1) will close at a loss. As the system continues to take new levels, it will always close the oldest level as the new level is taken. For example, if level 6 is taken, then level 2 is closed down at a loss, etc.

Taking these losses is a vital part of the strategy and is a necessary aspect of the system. As the Current Correlation begins moving back toward zero, Trade Goose takes profits by closing pairs whose combined equity has reached a predetermined "Profit Target". The greater the back and forth motion of the correlated pairs, the greater the opportunity for significant profits.

Expect your account balance to fluctuate as the system closes out old levels and opens new ones. For example, your account balance may be at a gain for the month of 7% one week only to see it drop to 5% the following week. Such fluctuation is normal and is to be expected. Past performance indicates that, over time, gains outweigh the losses producing above average returns.