Because he knows more about trading and risk management and psychology of trading than you apparently do. Also because Jack Schwager (world famous trader) who wrote a book called "Market Wizards" (...ever hear of it?) thought enough of him to have him as the ONLY nontrader in his book. Maybe he thought he had something valuable to say. Don't take my word for it,...maybe you will take Jack Schwager's. If not,..then fine. I could care less. You do not have to be a racecar driver to teach driving skills. The same applies here. Besides, there are plenty of places to learn from people. Not every skill in life is learned from an expert with years of experience in that field.
interesting thread. old time it is not clear if you are a 100% mechanical systems trader or a discretionary trader following fixed setups? I always trade at least two (2) systems that are negatively correlated. so if one is heading south towards dd land, the other equity curve hopefully is keeping its head above water and moving upwards. usually it is the same system, but with two different parameters, short term vs long term etc. There is a lot to this subject which goes against the grain. Just remember that John Henry, the billionaire futures system trader and the owner of the boston red soxs will 'add' to his size when the equity has a 40% draw down. big mike trading forum, probably has the one of the best discussions of the mathematics of trading. http://www.bigmiketrading.com/psych...matics-gaming-theory-can-help-you-trader.html
You don't have to shout (bolding). Your logical false analogy fails. You do have to know how to drive to teach driving skills. Here the allegation is that a certain individual lacks the skills he is trying to teach. I don't care whether that is true but your counter-argument is for laughs.
Do you think that all professional football players learned to throw and catch a ball from NFL athletes? These are basic things that any trader should understand. To say that you cannot learn these basic skills from someone who does not do this for a profession is quite narrow minded. Did you learn to run from Olympic athletes? Did Michael Jordan learn to shoot hoops at the age of 9-12 from NBA stars at the time? Everyone is an opportunity to learn something new.
I'm in the market all the time and almost always spread but net long or short many different currencies. Like you said, when one pair is up another may be down, but not neccesarily. It is unusal for everything to be up or down. 90% is mechanical, 10% involves reading the market.
not where I come from. The CTA has an agreement, 50% drawdown and you get whats left of your money back and the account is closed.
LOL,...NO. I think MOST of us would call that financial ruin. 50% DD means you need to make 100% just to break even. 70% DD means you need to make 233% just to break even.