So if I keep $1M in my trading account (because I'm lazy and don't want to transfer it to my bank account), and you keep $10k in your trading account because you transfer your winnings out each month, and we both take exactly the same trades using exactly the same position sizing, you're saying that we're experiencing DIFFERENT performance? Dude, unused account balances don't matter. If I have $1M in my account and trade 1 contract and make $200 per day, I'm doing exactly the same as you, even if you only have $10k in your account but you also trade 1 contract and also make $200 per day. I just have $999,500 of unused margin sitting in cash. It's not a fair comparison against hedge funds because they have billions but they don't keep a majority of it in cash. So if a hedge fund makes 8%, they were using most of their cash. Plus, you are limited with huge billion dollar accounts because you literally move the markets. A majority of (smart) traders use only a fraction of their account size, so it's totally different.
First I think that is a pretty terrible assumption in money management. Secondly, you could move it to a money market account, but you already knew that. Thirdly (is that a word, haha) - you do have different performance my friend if you determine performance on a percentage basis. I do. And that can skew your results etc. You knew that too I am assuming. Fourthly (lol) - Hedge Funds just don't invest in equities and futures. They invest in anything, they dont need to worry about the liquidity of markets. I do not run one though so my input there is of a greenhorn at best. And they do not state what they exactly do in the prospectus as well. I do know that. EDIT for FIFTHLY - you are not assuming risk in the $10,000 account. It doesn't make a lot of sense to me personally.
How is the spread trading going ? Did you finally figure out that you needed a reason to buy or sell an energy spread or are you still trading it for the purpose of trading a spread? 2 years ago, you sounded like 18. Now you sound like 15.
It is evident that neither Increasenow nor 1a2bcppp trade...let them fantasize, but one day I sincerely do hope they do pick up some morsels from this forum for when they do learn to trade... NiN
Avg. $400/day on a 50K account? Hmm....possible. That is $2000/wk average gain or 5% weekly. Good return. It also means that you can find two other guys with 50K accounts and wipe them out completely. Alternatively, you can 50% drawdown four of such accounts. Normally, you should be able to 25% drawdown eight of those accounts since few will wait to to see their account drop 50%. Good job....possible, as long as you can find suckers around...but impossible in a market dominated by MMs.
Unknown to you the last sentence said "Do not worry if you do not understand this" You opinions are terrific for you to hold. a. Again this is your opinion. My comment was simply an amplification of how trading works for others than you and your ilk. Trading works different ways for different people. b. Caring is a complex topic. Intellectually, it is nice when people can grasp an idea and, perhaps, run with it or let it influence their growth and progress. On the other hand some belief systems preclude a person from considering anything outside of the walls they have built in their minds. Do I care if they built these; certainly. It is unfortunate for them and their families, etc.... But I do not care if they are stuck in the place they are; it would consume a lot of energy if I were to document why they have passed the point of no return or why and how this consequence occurred. What I represent is a paradigm shift from the CW you follow. That is why I introduced the up, down models. The contrast provides a major clue as to why there is such an emotional contrast. You couldn't read that far at this point in time. It is very disconcerting to some CW practitioners to get a glimpse of an alternative. Basically, in corny parlance, often there is a sort of shoot the messenger. Look at the effort T666 makes to keep my messages he does not grasp, before the public. Others focus on creating a portrayal of me like in comic books. Dave Goodboy is also a portrayer of me from the viewpoint of a person who is unable to reason or use foreign words as descriptors; he does not even understand how any systemmic trading works as seen by his misuse of CW terminology. You may stop reading this as you did the other substantive info you were provided. Other people may read it and connect with me in a conversation of some sort. So with respect to that, you are a just our foil in the picture. A lot of different perfomance styles are out of the range of your possible consideration. Netto, Morge and TOS are examples. I could name 20 more.
Thank you for giving readers another shot at reading the point I was making. Your comments indicate to me that you do not get the point I made. Some people do understand my comments. he CW trader does understand that he has anxiety, fear and anger as an emotional orientation. Lo points this out in the citations that you used to post. He does not, however, attribute the source of these emotions using TA or market analysis. Neither did you but I do. A study of the causes of early exits, will reveal how the three CW patterns are the causal factor. You may not understand this because it is not a field you have participated in. I like the manner that the examples I compared, clear to those who know of market dominance and non dominance (take contrarian or trend following traders, for example), involved a single commonly occurring order of events. It may be possible that you are unaware that trends are biased and why and how that bias occurs and how easy it is to detect. One of the most important things is staying on the correct side of the market. Anther thing that is important in a trend is knowing that a trend has three moves. As important as anything is always knowing where you are in market cycles on any fractal level. A person who knows how fractals nest also has an advantage. All of these matters are available through searches. Many many successful methods deploy this kind of knowledge and the associated skills. It may be that you did not develop the inference to be able to have the perception required to trade effectively. Here is a snagit of six price and volume moves. Three short and three long. they are the most recent happenings on the market today. Six trades on the 5 min ES. None of them are in the range of what you think 50K can earn in a day. A day is 81 bars.
So why don't people subtract from their trading accounts in order to skew the profits then and impress everyone on ET? If you have a $10k account and trade one contract and make $200 per day (entirely possible), that's $1k a week or approx $50k per year. ZOMG 500% returns!!! But if you've already got your living expenses squared away in another account, and you're lazy and don't feel like taking any money out of your now-$60k trading account, and you do the same thing next year (another $50k profit), then you only made 83% that year. So going from 500% the first year to 83% the second year looks like you did worse the second year. The truth is that you did EXACTLY THE SAME. You made $200 per day on 1 contract both years. Exactly. The. Same. I'm not sure how else I can explain it and I'm not sure why people aren't getting this. Assume two traders, trader X and trader Y. Trader X trades 1 contract and makes $200 per day = $50k per year. Let this action be known as Z. Trader Y trades 1 contract and makes $200 per day = $50k per year. By definition, this action is also Z. Trader X's account size is $100k because he never takes any out because he's lazy. Trader Y's account size is $10k because every month he takes out all his winnings to pay for hookers and blow and leaves a base size of $10k in his account. Both traders' performances were Z. You are saying that Z != Z. That's some crazy ass logic you got going on. ( != means "is not equal to" )