Dow Quant Long Futures Strategy

The strategy is using a long only approach and trades generally only if the market fell. It has a stop loss and a take profit. Both are either triggered when there is an exit signal or the SL/TP is reached. The focus on this model is designed to mirror simplicity, stability and statistical significance over a long period of time. Additionally, we looked for a high winning rate, a system that generates alpha, so the focus is clearly on making followers comfortable. Traditional trend following strategies tend to have lower hit rates, which generally is an emotional burden for followers/retail investors. We are looking for staying less in the market compared to being long only invested and a better risk adjusted return than the market. Risk adjusted return: Below is a comparison of some metrics, as unfortunately we are not able to upload graphics and charts here. 1. We compare the risk adjusted return for the Dow Jones futures market versus our strategy. For the past 6 years (up until the 21.05.2026) we have the following results in POINTS: Year Dow Jones Market 2020: Return: 2.404 Max drawdown: -11.323 Reward to risk: 0,21 2021: Return: 6.199 Max drawdown: -2.518 Reward to risk: 2,46 2022: Return:-3.149 Max drawdown: -8.163 Reward to risk: -0,38 2023: Return: 3.424 Max drawdown: -3.760 Reward to risk: 0,91 2024: Return: 3.198 Max drawdown: -3.150 Reward to risk: 1,01 2025: Return: 4.098 Max drawdown: -8.859 Reward to risk: 0,46 2026: Return: 519 Max drawdown: -5.853 Reward to risk: 0,14 Dow Jones Strategy 2020: Return: 4.474 Max drawdown: -3.540 Reward to risk: 1,26 2021: Return: 7.272 Max drawdown: -1.663 Reward to risk: 4,37 2022: Return: 5.316 Max drawdown: -4.023 Reward to risk: 1,31 2023: Return: 4.343 Max drawdown: -1.490 Reward to risk: 2,91 2024: Return: 4.470 Max drawdown: -2.134 Reward to risk: 2,09 2025: Return: 9.651 Max drawdown: -3.440 Reward to risk: 2,81 2026: Return: 1.441 Max drawdown: -2.979 Reward to risk: 0,48 (Backtesting data is hypothetical and it has not been verified by C2.) We can clearly see, even if that is a long only strategy, the market timing beats the overall market consistently each year. The reward for the taken risk is also each year a much better number, which allows investors an insight into potential higher point returns per year for a given $ risk. Subsequently, the risk per $ return is much more attractive, the system has only winning years even when the market produced a negative return in 2022. This is especially important showing its high stability and performance in its core, plus added money management inputs can significantly increase the given performance above. Key statistics: The results and assumptions are based on 1 Mini Dow Future contract ($5 per point) a) The strategy would have made profits of $177,315.00 from 2020 until 2026 with an overall winning percentage of 76%. b) The maximum drawdown experienced was -$20,160 happening on the 25.01.2022 c) The maximum losers in a row have been 3 and this stays stable, even calculating the system back for over 20 years, including financial crisis and any negative yearly market return over this 20 year period, the same is true for the winning percentage, it stays at 76%. d) The system trades very slowly, averaging around 20 trades per year As seen above in the key stats, the system is extremely stable, doesn`t overtrade, there is no curve fitting involved, it is consistently performing, as a long only model, even in market downturns. This model is for followers who want to have alpha on the Dow Jones markets, looking for consistency and low frequency. We will publish Nasdaq systems which are mixing in the same kind of logic, but have more spice in its returns and activity, designed for followers who are looking for more action and activity.