The flaw is in the sytem traded. If the system fails, no mm can help you. Other than that, it is a valid strategy for MM. There are really 3 different methods/strategies out there. By far, the optimal strategy is called optimal f, it will grow your acct the fastest.
Yes its possible, but not in 3 months Give 6 months to this guy, read his blog, and talk to me in 6 months. http:\\especulando.blogs.sapo.pt especulando.blogs.sapo.pt And best of all, only 1 or 2 trades a day, you can even go to beach meanwhile. Talk to you in six months
First you need to pick a three month period when your system does really well. But you never know when that three month period will be. But you might get lucky, perhaps wait for another war or the Feds to change stance. Basically any catalyst that will make the market action very favourable to your system for atleast three months. Then you need to bet around 20% a trade, just about marginable with Futures and day trading. . Optimcal f might not be marginable.
Thanks for your suggestion. I am reading Ryan Jones's book. He has a section on explaining why Optimal f is great math, but useless when it comes to practical application in trading. (pg. 67) In the book he is proposing his invention -- the Fractional Ratio method. I should get to that chapter by Sunday evening.
Grob: I have read and reread your post 30 times since 08-21-06 04:19 AM. I think I have finally got the first idea of what you are trying to tell me. I shall write out the answers to the 2 questions, then get on with researching step "A".
Do the Zanger approach. Not sure of his money management, but punt the whole lot on chart patterns that are looking to explode. Of course you'll probably have to get out more often than not, but you'd have to get onto a few big rides. Don't try and make a trading system or use maths, lol - this is gambling. Just find probable pattens and trade the lot, or maybe 50% and do two trades at once. Use a MM CFD provider or maybe options, that way you won't move the market.
I challenge your 4th and 5th statement. Although I am not live, it will be demo. See below thread for the challenge. http://www.elitetrader.com/vb/showthread.php?s=&threadid=75710