Don Bright
Bright Trading, LLC
Registered: Oct 2001
Posts: 11698 |
08-14-12 11:53 PM
Quote from lionline:
i love the armchair trading gurus on et.
First of all. No one said our account is 300k. willing to put up 300k is a different story. Regardless, 300k is NOT a small retail account.
ETC as a clearing firm has less net capital.
and its totally irrelevant.
now regarding returns. if you bothered to actually try to understand what i wrote, you would get that:
% return on capital used is < borrowing rate.
if you knew a little of math, you would this will apply same way with a $1.00 account and a $2.00 account (keeping the #s small so you can follow) so you can scale from $1.00 to $2.00 without a problem.
the problem is that who would want to go in to a situation where % return < borrowing rate.
Aha - for that you need to actually to understand a few more things, but its not the point of discussion.
Anyway, this has been a total bust, as expected.
Now you've lost me, and I'm pretty good with math, LOL. As is Evo and Clubber.
If you're talking zero overnight, the there are no fees during the day. So, the trading firm has no way to make any money from you, nor the clearing firm.
Putting up $100k and trading with $1mil may make sense intraday, but again, $20 milllion on even $1million is just plain bad management by any trading firm. No return for a lot of risk. And if you think even a 50/50 split is worth that kind of leverage, not i my 30 years.
Not to be critical, but if you have something that really does work (and understand, I've heard 100's of plans over the last 30 years that somehow, some way, just happen to not work in the longer term)....then I suggest simply putting up $100k, and use 10 to one, day time, 30 to one overnight.
If you're confident enough in your system, then why give away a percentage of profits?
All the best,
Don
__________________
Don Bright (not an alias)
Bright Trading, LLC
http://www.stocktrading.com
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