!!! SYSTEM IS NOT SUPPORTED ON C2 SINCE 07/01/2007 --- every position open after this date was left un-closed since I did not pay the listing fee for an additional six months. All subscribers had been informed in advance !!!


RISK DISCLOSURE: THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.

THIS IS NO TRADING ADVISE. ALSO THERE IS NO GUARANTEE OF PROFITS. DO NOT TRADE WITH FUNDS THAT YOU CAN NOT AFFORD TO LOSE. TRADE WITH RISK CAPITAL ONLY. ALSO ALWAYS EXERCISE DUE DILLIGENCE WHEN TRADING IN ANY MARKETS. BY SUBSCRIBING TO THE SERVICE YOU ACKNOWLEDGE YOUR UNDERSTANDING OF THE ABOVE STATEMENT. YOU ALSO ACKNOWLEDGE THAT THE PROVIDER OF THIS SERVICE, C2 OR ANY ASSOCIATED PERSONS WITH THESE ENTITIES ARE NOT RESPONSIBLE FOR ANY FINANCIAL LOSSES THAT YOU MAY INCUR BY TRADING.

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The logic behind MK BC is a proprietary fractal based approach combined with a strict risk-control --- there will never be any trade without an initial stop loss relatively tight in comparison to the target zones. The size of a position is variable and adjusted to the initial risk and the success probability of the trade.

Different financial-, equity-, commodity- (hard and soft) and currency-contracts will be traded. In backtesting (from 1980:1 until 2005:12) the Profit Factor for the backtesting results was 2.71 and a k-ratio of 9.5, what indicates a smooth and stable equity curve.

V2.0 means that the money management and position sizing algorithm has been improved noticeable in comparison to Version 1, which was used for in-house testing only. The result of this change is a stable trading system which is now used in real trading and which will (hopefully) generate a smooth equity curve.

In backtesting the maximum draw down was 25 percent on a trade-close-to-trade-close-basis. As you can see there is a draw down of approximately 15 percent from January 24th to of 29th of January 2007. But please be aware that C2 calculates draw downs on a daily basis, which discriminates swing trading systems as MK BC V2.0 Futures II in comparison to day trading systems.

For day trading systems the daily calculated draw down IS on a trade-close-to-trade-close-basis, but for swing trading system it is not. To clarify this imagine the following situation: A swing trading system enters a trade in a stock at $100. Used account size is also $100, so we buy one share. As the system uses no stop loss the capital risk is exactly $100. Over the next days the stock price goes up to $500, also does the equity curve. But thereafter the stock plunged rapidly back to $100, where the system sells at break even. The equity curve and C2 now state a draw down of $400. What might be an important information to intended subscribers, because they need to know how much money they have to assign to the system to withstand draw down phases. And it seems that you will need $400 in minimum, as the system has a historical draw down of $400. But this is obviously wrong, because you can trade the system with just $100 and achieve exactly the same results as the system vendor. Why does this methodology discriminates swing trading systems in comparison to day trading systems? Because it shows losses of book gains in swing trading systems, but does not in day trading systems. In the latter ones you will see an equity curve of $100 at the day before the trade and you will also see a curve, which shows $100 the day after the trade is closed. But you will not see a