I think we ought not to be fixated with % winners. Albeit 90% sounds a bit high. Maybe he is taking scratch trades out of the %? Anyway it is highly feasible for a scalper with a multi car strategy to average 60-80% winners because the profit target contracts are winners a very high % of the time. In fact when you have a multi contract strategy a high winning % might be a necessity just to break even. Look at the following: "A" trades 2 contracts, exiting 1st car on profit target of .75 and letting the 2nd car run and exiting based on discretion. "A" takes an average loss of 2.25. On average his 2nd contract nets him 1.5 (some more, some less). In this case "A" will need to average a very high # of wins to offset his occasional but relatively large losers (2 x 2.25). The breakeven point for "A" is a winning % of: ((.75 + 1.5) x a%) = (4.5 x (1-a%) or a win % of: 67% (assuming my math is not in error) That is a pretty high breakeven %. This means that if someone were batting 75% then his average trade would be: .56. To me this means there isn't a lot of room for error with the trading strategy in this example. "A" can improve his results by doing any of the following: reducing his avg stop loss to say 1.25, increasing his average trade on the 2nd contract, increasing his profit target on contract #1, increasing his win %. This type of trading methodology has its plusses and minuses but ultimately the individual will need to determine if he has the ability/desire to make a high % of winners as well as all the other factors. There are ways to make a low % of winners profitable too, it just comes down to what the individual CAN achieve and what the individual WANTS to tolerate. I have no idea how anyone else's strategy works out on paper so the above is just for illustrative purposes and is not intended to represent any particular strategy, especially the strategy of anyone who has posted in this thread. Good luck!
dave is surely not the kid. OK man, I think respect you try to answer our remarks and any trader should respect a fellow making money. Still your claim is hard to believe. Not for a specific winning trade but your claim of always winning more or less. Common sense demonstrates it is impossible. And even less credible if you want to share it with others. but I guess it does not matter. what is important in this forum is to share ideas. It is always interesting to discuss strategies. I think you are using very common strategies too. And that's OK because making money in this field is usually done with known strategies not strange things. So why not continue to discuss these here. If you want to be taken seriously you must understand that it won't happen when you ask people to talk to you privately. Unless you are recruiting for some reason. tntneo
Dave, That e-mail doesn't say anything about the number of points you made based on 1 contract.... Some trades you can put on 10 contracts and make only 1 point but 500,-$ and another trade 1 contract and lose 1 point so - 50,-$ you made 450,-$ minus commissions and made 0 points, hehe !! Show us the trades with the number of contracts each. When we are talking about number of points not dollars made......
Suppose Dave made 2 trades first trade with 20 contracts 2 points profit dollars won = 20*50*2 = 2000,-$ second trade with 20 contracts 1.75 points profit dollars won = 20*50*1.75 = 1750,-$ so, total profit = 3750,-$ and only 3.75 points !!!! and not 10 or 20 points, hehe!
Dave How about posting that statement several days in a row? Just for the heck of it. Destroy all the doubters.
Dave, Put the complete statement, so that we can see that you are making 10 to 20 points of range based on 1 contract.
Other scenario, Dave makes 40 trades , each time with one contract,well, then he has made 75 points 75 points that's 75/18.5 = 305 % of range and that's something superhuman, hehe !!!