PEGASUS
ASX system traded live &
successfully for over 4 years


After 5 profitable years, Pegasus has averaged a flat net profit rate of 36% pa
and has returned a total flat net profit of 149% since inception on 1st November 2000.
Maximum historical drawdown: 17.4% of total capital on 13/Nov/2002.

Pegasus is no longer active due to author's pursuit of futures/forex trading & lack of available free time.
It is an example of successful technical analysis development & application,
as well as an example of the risks associated with trading.
Pegasus is a showcase for available services, and is not available for sale or disclosure.







Pegasus & Market comparison

01/Nov/2000 ~ 01/Jan/2005



Total net profit on 435 complete trades (246 wins, 57%)

+ $149,083

Total net % profit of AU$100,000 initial investment

+ 149.1%

Non-compounded annual net profit % rate

+ 35.7%
pa
Performance comparisons for same period:

(Non-compounded annual gross profit % rates)
(1/Nov/2000 ~ 31/Dec/2004)

Pegasus (+$179,518)

+ 43.0%
pa

ASX All Ords (4,053)

+ 6.2%
pa

Dow Jones (10,783)

- 0.3%
pa

S&P 500 (1,212)

- 3.5%
pa

NASDAQ (2,175)

- 8.3%
pa

AU$/US$ (78.1c)

+ 11.7%
pa



Pegasus - net performance

all past/present versions, flat/net returns (includes AU$68 total brokerage) for the past five years:

v2.0

2000

+ 72.8% pa
(Nov-Dec)
v2.5

2001

+ 31.1% pa
(full year)
v4.0

2002

+ 13.5% pa
(full year)
v5.1

2003

+ 84.4% pa
(full year)
v5.1

2004

+8.0% pa
(full year)


Annual net flat profit rates are calculated on AU$100,000 original investment capital.
All trades based on average fixed AU$10,000 amounts.
All Pegasus entry & exit prices are based on actual traded prices.
Actual traded capital varies.
All Pegasus +10 gray, non-traded, theoretical entry & exit system signals are based on realistically obtainable prices, but are not included in any performance summary.

Net profits include all entry & exit transaction costs:

• AU$98 per trade (x2 brokerage and x2 stamp duty) before 01/July/2001;
• AU$68 per trade (x2 brokerage) after 01/July/2001.









Pegasus v5.1 is the result of years of intensive research,
testing and trading in a volatile ASX stock market.
This evolving trading method's results were publicly monitored & scrutinized
- all trades were posted & updated here at the end of each trading session.

Pegasus is a short-term, mid-cap, multiple-rule, fully-mechanical trading system.
It has been designed to capture rallies and uptrends,
whilst attempting to preserve capital with timely exits in trend reversals.

Pegasus is based on the ADT-05 market filter
with several additional distinct entry & exit strategies incorporated.


click here for Pegasus equity charts click here for Pegasus equity charts


Click here to view comprehensive portfolio simulations for Pegasus.
Click here to view a full market test report for Pegasus.
Compare with a buy & hold strategy for the same period.
Click here to view sample charts of past profitable and failed Pegasus trades.

Extensive Monte Carlo simulation testing (inc transaction costs & 1.5% total slippage)
based on data for the past five years, has shown the following potential for Pegasus v5.1:
56%pa avg flat net profit
74%pa compound net profit
(profits reinvested weekly)
60% win strike rate
12% maximum absolute equity drawdown
approx 60% of all system signals traded
75% of trading months profitable



The Pegasus trading system was built solely upon proprietary technical analysis methods.
It has been designed, developed and tested using mostly MetaStock & TradeSim software.

Pegasus is an example of successful technical analysis development & application.
It is a showcase for available services, and is not available for sale or disclosure.






Disclaimer

The only certainty is uncertainty

All information provided on this website is for educational purposes only,
and not for the purpose of encouraging or soliciting investment.
The author is not a licensed investment advisor and therefore cannot give advice pertaining to any financial instrument including equities, derivatives or futures.
Please note that the above trading results are not recommendations to buy or sell, and that past results are not indicative of future performance.
Some final thoughts...
Avoid processing more information than you can digest:
it is better to know less and understand more.
Data is not information until it has been collected, collated and organized.
Information is not knowledge until it is absorbed and comprehended.
Knowledge is not understanding nor wisdom,
until it is associated with life experience and given perspective.


Copyright © 2000-2005 Jose Silva
All rights reserved
Except for personal use, no part of this text may be reproduced
in any form or by any means without the written permission of the author.
MetaStock® is a registered trademark of Equis International