Always trading systems in their worst drawdown

Discussion in 'Trading' started by Gordon Gekko, Mar 13, 2003.

  1. I'm just making this post to demonstrate that the concept is a real possibility. I do NOT really believe that this is what happens to me.

    If something can happen, it will happen. If it is possible for someone to have bad luck and jump from profitable system to profitable system at the point it starts a drawdown, it could happen. This person could be someone who does follow the system's rules correctly, but they are just unlucky.

    Just as if a large enough number of monkeys were trading, some would appear to be great traders. Well the flipside is that if you have enough monkeys trading a bunch of profitable systems, there would be a few monkeys that appear to be bad traders, although they correctly traded profitable systems.

    I am not at all saying that this is what happens to me. I'm just throwing out the concept, because it is something that could happen! :eek:
     
  2. They may appear to be bad traders, but they will really become ones if they stop trading their system because of the drawdown. That's how most system traders really lose money- because by stopping trading they are not able to recoup it and then make even more than they started from.
     
  3. I haven't seen you or Alphie posting as often as of late - I was kind of wondering where you went off to?
    Anyway, just thought I'd ask how things are going? Making any progress?
    Cheers
     
  4. I'm still around. I don't know what's up with Aph. I think he mentioned in some posts that he was in the process of moving or something. So maybe he's just been busy.

    As for me, sometimes I think I'm making progress, but then it just doesn't seem like I am when my account gets smaller and smaller. But I guess you could say I'm still progressing if whatever happens sends me on the path to achieving my goal.

    "'You don't understand,' Edison told him. 'I haven't failed at
    all. I've successfully identified 5000 ways it won't work. That
    puts me 5000 ways closer to finding the way it will work.'"

    "Michael Jordan said, 'I've missed more than 9000 shots in my
    career, and 26 of those misses came when one of my teammates
    passed the ball for me to take the last second, game-winning
    shot. I have failed over and over, which is why I succeed.'"