How to never get an account wiped out?

Discussion in 'Strategy Building' started by gg12, Jan 9, 2007.

  1. ssss

    ssss

    Error correction

    Was writen by ssss

    Best result for Currency
    in this contest for 4 week was performed from another
    operator 556%

    Must read

    Best result for Currency
    in this contest for 4 years was performed from another
    operator 556% against approx 15000-20000 competitors
    each year
     
    #121     Mar 24, 2007
  2. If you think that an intraday futures trader can't earn 8% daily profit, $80 per $1000 (consistently or averaged, your choice) you simply don't understand futures.

    I'll throw a few caveats in here...

    1) You must have some sort of proven profitable method of trading.

    2) You must be disciplined.

    3) You must limit risk by NOT going all-in based on very minimal intraday margin requirements. A good rule of thumb, base trade size on double or triple your intraday margin requirements.

    4) You must be disciplined.

    5) large value accounts lose the ability to concentrate trading in one instrument.

    6) You must be disciplined.

    7) Overnight positions carry substantial increased risk, regardless of trade size. Understand the added risk. Or choose to be prudent, hence the term "intraday" margins, "intraday" trading, etc.

    8) You must be disciplined.

    The names you mention as [your] yardstick of success are indeed all are deservedly famed. But what are they famous for? Schwartz traded everything. Cook won a 1990s contest in the options division. Baruch, well he was "The Lone Wolf of Wall Street" in the early 20th century.

    My suggestion is find YOUR edge. Just as your yardsticks (and some other ET members :) ) have found theirs.

    And for the record, I am not recommending use of an 8% profit target. That is MY number. Go back to my original post and play your own what-if with the XL workbook download.

    If you say so, it is.
    Osorico :)
     
    #122     Mar 24, 2007
  3. ssss

    ssss

    Dear Sir

    Martin Schwartz is best in future with public record approx 800% per year . this kind of result for start capital
    400000$(in modern price 1 mln $) have no more 10 operators
    from 100 mln operators.

    He reported about multiple years excessive losse's

    No doubt . As B.Baruch and Mark D.Cook

    For small account another history ,but author not think
    that any operator without insider bias ( or not to be market -maker) can report regulary 1% of profit per day through year
    (with reinvestment of profit more as 1200% per year)

    Proft 1200% per year for small account possible for top operator ,but that would not each day regulary 1%
    Would multiple loss and multiple profit's,depend from risk/reward relation

    Your respectfully
     
    #123     Mar 24, 2007
  4. If you say so, it is.
    Osorico :)
     
    #124     Mar 24, 2007
  5. ssss

    ssss

    Osorico wrote -

    If you say so, it is.
    Osorico
    #####################

    Dear Sir

    Sorry no,it is only result of observation of different public record
    in mutiple countries and privat experience of the author in multiple countries contest's .

    No warranty ,only position of the author for opinion exchange ,no more .

    From game theory point of view ,all can be ...

    Your respectfully
     
    #125     Mar 24, 2007
  6. GG,

    So how are you doing nowadays?
     
    #126     Mar 25, 2007
  7. Your account size should be 8:1 dollar ratio. That means that if you are trading a 1 share of a 10 dollar stock, then you account should be 80 dollars. Further, your trade should risk no more than 10% of that 80 dollars.

    If you lose all of that 10 percent, then you can only trade 1 share of a 7 dollar stock.

    Best Regards
    Oddi
     
    #127     Mar 26, 2007
  8. gg12

    gg12

    I am happy to report a huge plus today

    03/26/07 +18.2%

    Initial risk this morning was about 19% of the account, but I added positions during the last hour of trading today, increasing my risk to about 70%!!! of my account. Therefore I was more than 85% (70%/2+50%) sure that it will work in a positive manner.

    THE TREND MADE IT (We had a steady uptrend after the morning pull back). I was able to recognize and act on that TREND.
     
    #128     Mar 26, 2007
  9. gg12

    gg12

    Thought things of yesterday will repeat...

    03/27/07 -2.6% (big risk on account!!!)
     
    #129     Mar 27, 2007
  10. gg12

    gg12

    Today I have been just inconsequent. There was a downtrend and I didn't close short puts early enough.

    I had the right feeling to close the positon for hours but greed and performance pressure jumped in - and I did nothing.

    Interestingly the result for my behavior isn't a loss!
    I would have accepted a loss and I would have deserve it!

    03/28/07 +9.2%

    How can I learn from wrong reinforcement? (Same happened yesterday at the -50 level with a resulting loss, but nothing learned!!!).

    For me it seems that the entry is more important than the exit. May be I need to calculate my forecast in the morning and then apply it to my opening trades - and then switch off the system to let the options expire.

    May be that would limit massive the time consumtion and bring more fun!
     
    #130     Mar 28, 2007