The Circular Trading System

The Circular Trading System (CTS) is a market-neutral "personal hedge fund" trading system that is always in the market. It automatically gets you long when a stock is going up, and short when a stock is going down. Stops are reversal points, so that if you are long and a stop is hit, you exit the long and then go short. If you are short and a stop is hit, you cover the short and then go long.

While past performance is not indicative of future performance, the average backtested (i.e. hypothetical) 12 month return on each stock in the system is currently 48.60%, with some stocks returning more than 200% over the same 12 month period, as per the standard disclaimer. And on a 5-year basis, the average backtested return is 567.63%, with some stocks returning more than 1,200%.

Our proprietary screening system identifies the stocks that have given the highest backtested returns over the previous 12 months, and updates the list every day before the market opens to show the next day's trailing and reversal stops.

Note that where there is the possibility of profit there is always the possibility of loss, and the use or placement of any stop-loss or stop-limit orders may not limit your losses whereby you could lose more than your intended amount of money at risk. Indeed, the system does not work with all stocks. For comparison purposes, we run a nightly update of OEX and NDX stocks using the same trading rules. And while as of September 02, 2010 22:52 the stocks identified by the Circular Trading System's screener program have 12-month average backtested returns of 48.60%, the NDX stocks return only 39.08% on average, while the OEX stocks return just 36.47%.

On the other hand, the system does work with certain commodities and index futures using the Circular Futures Trading System.

The following is a list of example stocks, showing the current positions, the total percentage return over the previous 12 month period for each stock, and the profit/loss dollar amount for all long and short trades. Note that the dollar figures are per share. e.g. if the P/L is +$20 and the usual trade size is 1000 shares, the profit would be $20,000. Please note that these performance results are generated by daily automated backtesting of the CTS trading signals, and are therefore hypothetical in nature and do not represent trading in actual accounts

Updated: 9/2/10 18:25

Buy Signals Sell Signals

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Symbol Last Price Current Trade Current Profit/Loss 12-Month Return Long P/L Short P/L

AAI $4.64 Long @ $4.63 on 00900110 +0.01 -27.94% -$2.13 +$0.25

AAPL $252.17 Long @ $246.29 on 00900110 +5.88 +56.33% +$101.90 +$24.99

ACI $24.28 Long @ $23.21 on 00900110 +1.07 +36.21% +$6.21 +$0.62

ADSK $29.32 Long @ $28.33 on 00900110 +0.99 +58.92% +$9.13 +$5.72

AKS $13.42 Long @ $12.65 on 0083010 +0.77 +113.62% +$6.20 +$14.69

ALU $2.74 Long @ $2.64 on 00900110 +0.10 +97.93% +$1.10 +$2.01

ALVR $1.97 Long @ $1.92 on 00900110 +0.05 -42.26% -$1.98 +$0.16

AMD $5.93 Long @ $5.81 on 00900110 +0.12 +117.22% +$4.47 +$2.38

AMR $6.31 Long @ $6.13 on 0083010 +0.18 +135.82% +$4.73 +$3.86

ATI $44.04 Long @ $41.59 on 00900110 +2.45 +100.30% +$25.67 +$13.58

AUO $8.85 Long @ $8.67 on 00900110 +0.18 +92.35% +$3.82 +$5.50

BOOM $14.56 Long @ $13.92 on 00900110 +0.64 +31.52% +$0.58 +$3.97

BTU $45.61 Long @ $43.68 on 00900110 +1.93 +38.53% +$10.25 +$2.57

CAL $23.50 Long @ $22.64 on 00900110 +0.86 +79.57% +$12.55 +$2.97

CCJ $25.54 Long @ $24.73 on 0083010 +0.81 +48.99% +$4.01 +$8.78

CHK $21.38 Long @ $20.56 on 0082710 +0.82 +69.99% +$6.49 +$9.88

CLS $7.94 Long @ $7.88 on 00900210 +0.06 -48.27% -$2.92 -$1.79

CNQ $33.78 Long @ $32.80 on 00900110 +0.98 +30.71% -$8.47 +$19.20

CY $11.51 Long @ $10.71 on 00900110 +0.80 +6.65% -$0.05 +$0.20

DNDN $40.58 Long @ $37.02 on 00900110 +3.56 +157.69% +$33.28 +$19.64

DRIV $30.02 Long @ $26.60 on 00900110 +3.42 +40.16% +$1.48 +$10.55

DRL $1.41 Long @ $1.42 on 00900210 -0.01 +53.85% +$0.73 +$2.80

ELN $4.53 Long @ $4.43 on 00900110 +0.10 +44.49% -$0.48 +$2.55

ESI $55.58 Long @ $54.75 on 00900110 +0.83 +41.66% -$7.37 +$45.28

EXM $5.31 Long @ $5.26 on 00900110 +0.05 -2.86% -$1.20 +$0.68

FMD $2.21 Long @ $2.16 on 00900110 +0.05 +17.03% +$0.25 +$0.62

FRD $6.19 Long @ $5.97 on 0082610 +0.22 -99.84% -$2.97 -$2.97

FRO $27.54 Long @ $26.60 on 0083110 +0.94 +120.01% +$18.78 +$16.11

GTI $15.40 Long @ $14.40 on 00900110 +1.00 +51.68% +$3.43 +$4.27

HRT $5.00 Short @ $4.89 on 00900210 -0.11 +169.11% +$3.99 +$2.81

IIG $3.79 Long @ $3.71 on 00900110 +0.08 +50.84% -$0.61 +$2.99

IIIN $7.85 Long @ $8.07 on 00900110 -0.22 -69.73% -$5.76 -$2.15

IIJI $6.58 Long @ $6.61 on 00900110 -0.03 -8.43% +$0.24 -$0.83

IRF $19.69 Long @ $18.79 on 00900110 +0.90 -6.35% -$0.65 -$1.80

KKD $4.26 Long @ $3.91 on 0083010 +0.35 -19.54% +$0.10 -$0.85

LNG $2.40 Short @ $2.39 on 00900210 -0.01 -2.27% -$0.25 +$0.35

LPL $15.22 Long @ $14.10 on 00900110 +1.12 +97.38% +$7.50 +$7.61

MEE $31.00 Long @ $29.70 on 00900110 +1.30 +141.32% +$22.56 +$23.49

MICC $96.30 Long @ $93.37 on 00900110 +2.93 +29.16% +$18.58 -$0.10

MSO $4.70 Long @ $4.50 on 00900210 +0.20 +51.50% +$1.28 +$1.68

NDAQ $18.75 Long @ $18.40 on 00900110 +0.35 -7.02% -$2.15 +$0.38

NEM $61.53 Long @ $58.39 on 0082510 +3.14 +33.11% +$14.97 -$2.26

NFLX $138.00 Long @ $125.71 on 0083110 +12.29 +74.69% +$61.00 -$18.85

NVDA $9.57 Long @ $9.60 on 00900210 -0.03 +42.74% +$0.38 +$4.74

NVEC $40.36 Long @ $38.99 on 00900110 +1.37 +56.49% +$4.89 +$20.90

NVTL $6.16 Long @ $6.11 on 00900210 +0.05 +31.24% +$0.63 +$4.84

OVTI $21.39 Short @ $21.80 on 0083110 +0.41 +94.88% +$11.84 +$3.05

PGNX $4.35 Long @ $4.19 on 00900210 +0.16 -44.10% -$1.94 -$0.62

PKX $103.46 Short @ $102.39 on 00900210 -1.07 +49.53% +$31.61 +$25.54

PMTI $9.00 Long @ $9.04 on 00900110 -0.04 +121.83% +$4.32 +$9.55

RHT $36.54 Long @ $35.15 on 00900110 +1.39 +32.31% +$10.30 -$2.29

RMBS $18.56 Long @ $18.23 on 00900110 +0.33 +19.90% +$1.67 +$1.29

SNDA $41.56 Long @ $41.35 on 00900110 +0.21 +19.87% +$0.86 +$9.47

SNDK $36.01 Long @ $34.21 on 00900110 +1.80 +114.89% +$23.00 +$5.79

SOHU $50.86 Long @ $48.85 on 00900110 +2.01 +52.35% +$3.81 +$20.12

SSL $39.44 Long @ $38.80 on 00900110 +0.64 +64.27% +$11.95 +$12.49

SWC $14.75 Long @ $14.06 on 00900110 +0.69 +87.61% +$7.20 +$0.18

SWIR $8.37 Long @ $8.39 on 00900110 -0.02 +75.53% +$3.45 +$3.30

TASR $3.97 Long @ $3.75 on 00900110 +0.22 -19.33% -$0.88 +$0.48

TNH $90.00 Long @ $88.96 on 00900110 +1.04 +55.69% +$10.58 +$30.63

TZOO $20.16 Long @ $14.86 on 0082610 +5.30 -1.06% -$1.10 -$2.10

USU $5.04 Long @ $4.78 on 00900110 +0.26 +77.01% +$1.83 +$1.78

VALE $28.41 Long @ $26.51 on 0082610 +1.90 +62.83% +$10.45 +$4.47

VLTR $21.02 Long @ $20.47 on 00900110 +0.55 +111.67% +$13.14 +$9.46

VSEA $26.25 Long @ $25.23 on 00900110 +1.02 +40.58% +$2.81 +$8.83

WDC $26.07 Long @ $24.97 on 00900110 +1.10 +58.44% +$8.07 +$16.60

WFR $10.99 Long @ $10.58 on 00900110 +0.41 +62.42% +$0.39 +$7.12

WLT $77.93 Long @ $71.22 on 0083110 +6.71 +83.55% +$33.24 +$21.74

Avg 12-Month Total Return 30 Day Return 1 Day Return Total 12-Month Profit/Loss
@ 1000 Shares Per Trade Avg Monthly P/L

+48.60% +4.92% +3.61% +$1,067,190.00 +$88,932.50