Al Brooks trading room

whether he is a joke or not. The fact is, AL can say, write, and do whatever he wants because the gov will not regulate him nor the 3rd party vendors.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=212110&perpage=6&pagenumber=5

 

Obviously very few can make 1 point per day with a size of 100 or more.

 

I think they are hiding somewhere.

 

Maybe that is what Al is teaching? Maybe Al taught his "friends" in the first place.

 

I doubt there are two people on ET who can substantiate such a return. I don't mean paper trading, or some curve-fitted backtesting, or doing it for a few weeks, I mean averaging it year after year.

I have gone through the numbers on this before on ET. To actually average one point a day would put one in the upper echelon of money managers in history.

Let's say you are ultra conservative and trade one lots with a $20,000 account. Actually, that is what all newbies should be doing, but I know most of them are looking for shops that offer $500 intraday margin. Averaging one full point a day would give you over 200 points per year. Say 200 even, which is $10,000, or a 50% return on equity. If you're a hedge fund manager, that gets you on the front page of the Wall Street Journal.

 

Arguably, one who makes more than one point a day over the long haul would not even want or need the hassle of being a money manager or hedge fund manager.

The skills that make one a successful manager of OPM are not necessarily those of a successful trader. Those are two separate occupations. When it comes to OPM, some can successfully manage the OP, and some can successfully manage the M. Few can do both.

If one can truly manage the M, why even deal with OP?

I have no interest in OP.

Always a retail trader, forever a retail trader.

EDIT: I wholeheartedly agree with the conservative approach to leverage. Overleverage is probably the top reason why traders blow their accounts. They never stay in the game long enough to know how to play.

Sometimes I trade one contract for much MORE than 20K, but if there are high probability setups, one should increase one's bet. And there are times when one should SUBSTANTIALLY increase the size of the bet.

Case in point: last week position sizes at times varied from 3 to 44 ES contracts. I trade the ES intraday and have for several years.

 

Obviously very few can make 1 point per day with a size of 100 or more.

 

Yes, indeed, since most traders are net losers, unable to overcome slippage and commission, and unable to overcome their own emotions and their own ignorance.

 

I agree with the statement yet I wonder what percentage of those that do trade 100 lots do make 1 point or more a day?

 

who are the few that can make 1 point per day?