Methodology & Portfolio Structure

Our Methodology

How the portfolio is built — a systematic, diversified, rules-based approach across major futures markets.

Risk Disclosure — Trading futures involves substantial risk of loss and is not suitable for all investors. Automated trading systems do not guarantee profits or the avoidance of losses. This page describes methodology and system design only — it makes no statements about performance, expected results, or returns. Past performance is not indicative of future results. Consult a qualified financial advisor.

Core Principles

What the portfolio is built on

Portfolio Structure — Not a Single Strategy

The portfolio is composed of multiple systematic strategies running in parallel across NQ, ES, GC, YM and more — each one targeting different market behaviors.

Negative Correlation

New strategies are added to the portfolio when they demonstrate negative correlation to existing ones — an approach aimed at managing overall exposure.

Systematic Design

Each strategy is rules-based and built for consistency with a negative risk-to-reward ratio — a design intended to operate automatically without manual discretion.

Execution on NinjaTrader 8

All strategies run as NinjaScript® on NinjaTrader 8 with Kinetick market data — a standard stack in the automated trading industry.

Hypothetical Backtest Results — Not Real Trading

All results below are from automated backtesting on historical data via NinjaTrader 8. They are hypothetical and do not represent actual trading. Hypothetical results have many inherent limitations — slippage, fills, and live market conditions differ from backtest assumptions. Past simulated results do not guarantee future performance.

Backtest Results

System Performance Overview

NinjaTrader 8 · Jan 2025 – Apr 2026 · Hypothetical, not real trading results

αALPHA

6E · ES · MGC · MNQ · NQ · RTY · YM

Net Profit (Backtest)

$208,552

590 trades · Jan 2, 2025 – Mar 27, 2026

Equity Curve

Hypothetical

Win Rate

~84%

Profit Factor

~2.6

Best Trade

+$6,977

Worst Trade

−$2,612

Hypothetical only. Not indicative of future results.

βBETA

MGC · MNQ · NQ · YM

Net Profit (Backtest)

$110,972

330 trades · Jan 3, 2025 – Mar 27, 2026

Equity Curve

Hypothetical

Win Rate

~84%

Profit Factor

~3.6

Best Trade

+$1,212

Worst Trade

−$3,016

Hypothetical only. Not indicative of future results.

γGAMMA

NQ · MNQ · YM

Net Profit (Backtest)

$37,000

170 trades · Jan 14, 2025 – Apr 29, 2026

Equity Curve

Hypothetical

Win Rate

~69%

Profit Factor

~2.2

Best Trade

+$744

Worst Trade

−$826

Hypothetical only. Not indicative of future results.

Portfolio Structure

Strategy Correlation Matrix

The portfolio runs 6 strategies in parallel. Most pairs carry negative correlation — a design intended so that the risk exposures of different strategies do not accumulate at the same time. These values describe system design; there is no guarantee of identical behavior in live trading.

S1S2S3S4S5S6
S1
+1.00
-0.34
-0.28
-0.41
+0.08
-0.22
S2
-0.34
+1.00
-0.19
+0.12
-0.38
-0.15
S3
-0.28
-0.19
+1.00
-0.31
-0.07
-0.44
S4
-0.41
+0.12
-0.31
+1.00
-0.26
+0.09
S5
+0.08
-0.38
-0.07
-0.26
+1.00
-0.33
S6
-0.22
-0.15
-0.44
+0.09
-0.33
+1.00
Self (1.00)Strong negative (< −0.30)Weak negativeWeak positive

Why negative correlation matters

When strategies are negatively correlated, their risk exposures typically do not overlap. This approach is intended to smooth the combined equity curve and help manage peak-to-trough drawdowns — but it does not guarantee results and does not prevent losses.

Risk Disclosure — Futures Trading

Trading futures, options on futures, and foreign exchange products involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Automated and rules-based trading systems, including those described on this website, do not guarantee profits or the avoidance of losses. Any examples of strategies, system design, or portfolio structure shown on this website are provided for informational purposes only and should not be interpreted as a promise or prediction of specific results. You should carefully consider whether trading is suitable for you in light of your financial condition and consult a qualified financial advisor before trading.

NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. NinjaTrader Group, LLC is not responsible for the content or performance of Trade Master Algo strategies.

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Trading futures involves substantial risk of loss. No specific results are promised, and there is no guarantee that losses will be avoided.