20% per month trading half of the time with a 75% winrate and under 1% drawdown

Discussion in 'Trading' started by ElectricSavant, Aug 11, 2019.

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  1. Amahrix...

    I appreciate you information. Good Trading to you.

    Es

     
    #21     Aug 11, 2019
  2. ElectricSavant:

    How long have you been trading it? Have you looked at trading the NQ instead of the micro? Best of luck with it!
     
    #22     Aug 11, 2019
  3. Not even long enough to get excited. It's just that I have so many options at these early stages to refine. I do not remember a premise being so lucritive.

    I actually need to load test it and see what it can take...

    Es

    P.S. I will post a Journal. Stay Tuned.

     
    Last edited: Aug 11, 2019
    #23     Aug 11, 2019
  4. Jack1960

    Jack1960

    How do you propose to hedge the tail risk?
     
    #24     Aug 11, 2019
  5. I do not know. What would be the correct way to hedge the NQ. Use options?

     
    #25     Aug 11, 2019
  6. Probably an out of the money option that is low priced.
     
    #26     Aug 11, 2019
  7. Amahrix

    Amahrix

    Yes. This is a way. You must hedge tail risk.

    Market is like a classic bottle of ketchup.. you shake on your plate and shake and shake, either a little comes out, or a whole splotch. This is volatility.

    [​IMG]
     
    #27     Aug 12, 2019
  8. However trading 1 micro would be hard to hedge. If I keep my exposue down and my capital high then it would be hard to lose a substantial amount of my account. I could even be excited about 10% a month with double the amount of capital.
     
    #28     Aug 12, 2019
  9. These micros introduce a lot of possibilities without having to tie up so much capital.
     
    #29     Aug 12, 2019
  10. Amahrix

    Amahrix


    So you’re saying you’ll be trading 10% of your account at any given time? That’s an example.

    With that being said, is the risk defined while entering the position? For example buying a call option, my max loss is price paid. Do you have a max loss? Not a stop loss, but a true max loss? If not, then even if you put 10% of your account on the line, something can go majorly wrong and you’ll be in deep margin calls and end up owing more than the value of the account.

    Just making sure so you don’t fool yourself with the exposure to risk. In this case the risk of ruin.
     
    #30     Aug 12, 2019
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