What is the Aberration trading system? It is a mechanical trading system developed by Keith Fitschen in 1986 to trade a basket of commodities. The trading system profitably trades the eight different commodity groups: the grains, softs, meats, petroleum products, metals, currencies, financials and stock indices.
The Aberration trading system was commercially released in 1993 by Keith Fitschen. The trading system has been rated as one of the top trading systems from the day it was released, and it is still widely used. Futures Truth has named it, “One of the Top Ten Trading Systems of All Time” four different times. This highly rated trading system has been very profitable for over twenty years.
The Aberration trading system usually trades each commodity 3 or 4 times in a span of twelve months. It holds a position in the markets most of the time, about 60 percent time of the year in each market. This longer-term trading approach leads to larger profits in each trade and is intended to capture the major trending moves.
The Aberration trading system compensates for losses by trading a basket of uncorrelated markets. If one group suffers a loss, another group may offset the loss with a profit. Over the course of one year, there are always commodities that yield a large profit. These large profits overcome the small losses of the other non-trending commodities. The performance of the system over a basket of commodities can be easily measured with the user-friendly software provided with the fully disclosed system.
The Aberration strategy tries to capture the sweeping trends of each commodity. It works across all the commodity groups, but it works best with the groups that tend to trend the most: commodities like the currencies, financials, energies, and metals.
The Aberration strategy is suitable for various account sizes by using portfolios. The portfolios were developed across the various groups by taking the lower risk commodities in each group and adding additional commodities in the group for the next larger sizes portfolio. Performance is measured by generating equity curves and analyzing return and risk metrics such as profit per year and max drawdown per year.
The Aberration strategy is fully disclosed to traders who purchase the product. Knowing the basis behind a strategy helps a trader to stay with the trading when drawdown occurs. The strategy is implemented in user-friendly software that allows a user to generate daily signals, back-test historical performance on individual commodities, and back-test the historical performance of the various portfolios.