huh
Registered: Mar 2007
Posts: 403 |
12-17-08 06:58 PM
Quote from TraderZones:
Did you adjust all trades for slippage, commissions and the occasional trader error, panic or other trading problems?
On paper, people do not execute the same way, they do not use the same money management, they do not use the same cool logic, etc. etc.
I would guess a 100% paper trade results as you described, even if properly executed, should be cut by at least 50% or more
I didnt' do too much accounting of slippage, I figured I'd simply just use market orders to do my call entrances since they always trigger at the crappy bid prices. So I think I'm factoring in a little bit of slippage by overpaying for the debit spread and getting screwed on the selling of the hedge. Obviously now that I'm using a live account with real money I'll be hopefully getting better pricing but we'll see. No way to know how my money management skills would be in a nasty environemnt like we had the past few months unless I have some real skin in the game. I traded through the last couple months with my other positions and managed to eek out a gain so we'll see what happen with this.
I agree 100% is probably not doable in a live trading account for the reasons you mentioned above. However, I will take as low as a 30% return on this strategy for a year. If I don't generate at least 30% return in the next 12 months I will scrap this assuming the market gods haven't put me out of business by then.
So no I am not expecting anywhere near a 100% return, my expected target is around only 30%.
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