Aggressive Trading Systems, Stupid Fund Allocators & using acct balance as stop loss!

Discussion in 'Trading' started by CONsultant, May 10, 2008.

  1. I came across a number of trading systems that are designed to achieve high returns in a very short period of time but with large maxDD too.

    There are some fund allocators with, in my opinion, very stupid mentality of selecting traders using these systems with the belief of allowing some of their accounts to blow up but still remain profitable if only 1/2 of the surviving ones achieve more than 100% a month.

    http://currencyscalper.com/EADemoDownloadPage.html

    http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=160239229429&ssPageName=ADME:L:LCA:US:1123

    Please share your thoughts on this approach. i.e using your account balance as a stop loss.
     
  2. Anyway, Trading becomes Gambling when %return << %maxDD(unrealised losses) over the same timeframe even if you end up in profits.