Hi I'm following a system that made yesterday $1,356.55 per traded contract, trading DJIA, NASDAQ NASDAQ100 and SP500. From my testing so far, and the published data from the maker, this would make like 200% minimum annually. Is this really possible? Please check my Journal. http://www.elitetrader.com/vb/showthread.php?s=&threadid=70418&perpage=6&pagenumber=5 I've posted the trades for today. The system have been performing great during the worst market days. The system maker stop loss management suggestion, seems to give too big drawdowns. I'm not very comfortable with it. Does anyone has a stop loss management strategy that con help me ? I can share with you the system like if you PM me.
In the precious metals sector I've had $4+ up days per contract, and I've also had $10k down days, per contract. It's pretty unlikely you've cracked some system that decades of maths PhDs, analysts and sundry extremely intelligent people have all missed. Ups and downs are normal. Extreme ups and downs ... get used to them. Good luck PS at least your maxima are not as extreme as some of those who seek to sell miracle secret systems to the unwary.
Hi PM ! Thank you for your reply. This system seems to be working so far. As you said, it is not the type GET RICH IN 3 months.! but I saw some market predictions that look incredible. It seems these guys have some kind of black box that predicts market path, within certain errors. Now I'm trying to figure out the best trading strategy to get the most out of the predicted path.
As stated by John D. Farmer in the book "The Predictors" by Tom Bass (http://www.amazon.com/gp/product/B0...f=pd_bbs_1/103-0249832-1076638?_encoding=UTF8) the stock market is predictable from time to time. He speaks about "pockets of predictability". J. Farmer founded on 1992 the Prediction Co.(http://www.predict.com) around a bunch of software that predicts the market. This black box went more black since then, because after several buys, it was completely acquaired by the giant UBS. The buying completed for the 100% of the stocks of Prediction Co. after about 14 years of due diligence from the buyers, which without any doubt certifies the predictability of the market. 14 years of due dilligence mean that it is a hard task knowing if a system indeed predicts profitably or not. The problems with those systems that indeed predict the market are: 1. Only are developed by scientists, no financial advisor nor trader can build them up. 2. The scientist that develop them, try to sell them to financial institutions. The pros: 1. As with all the scientific knowledge happens, there is always a lot of scientist working on this problem and there will be a lot of solutions more or less effective working around. 2. The only possibility for us, mortals, to access to such a system is that some group of scientists cannot afford the 14 years to let a big firm make the due diligence to decide if buying or not their achievement, and finance themselves by offering their forecasts to the general public. So, to decide if you attach to that system or not I recommend: 1. Ask for the background of knowledge of the people involved in the development of the system. Trust if you find physicists (like Farmer), statisticians, mathematics and computer scientists. 2. Ask for the methods behind the system and reject those from computer optimizations of technical analysis (they cannot do better than the people). Accept those which require tools handled only by the scientific world (make the due diligence about what this can mean). 3. Do not trust those who promise doubling the capital every month. This will fail over the time. 4. Read "The Predictors"