Is "digging" an edge?

Discussion in 'Trading' started by T500K, Nov 25, 2010.

  1. T500K

    T500K

    I don't have an edge but I am good at digging myself out of holes, so to speak. I have an test account on C2. T500K is on test mode so nobody but me can view it. Here is the performance for the past six months. I have around $60,000. But a trader with this kind of amount of money has close to zero chance of ever making it.

    T500K Statistics: (From 06/01/10 to 11/24/10)

    Started $500,000
    Closed P/L $162,099
    Open P/L ($19,090)

    Trades 138
    Profitable 136
    Win% 98.6%
    Avg trade duration 19.7 hours
    Avg P/L per unit traded $0.30
    Annual return (compounded) 74.3%
    Profit factor 49:1
    Sharpe ratio 1.291

    Chance of 10% account loss 29%
    Chance of 20% account loss 14%
    Chance of 30% account loss 0%
    Chance of 50% account loss 0%
    Chance of 100% account loss 0%
     
  2. T500K

    T500K

    System T500K Performance Update:

    # of Trades:
    Number of Trades 154
    Profitable 151
    Win% 98.1%
    Avg trade duration 19.0 hours
    Avg P/L per unit traded $0.30
    Annual return (compounded) 93.1%
    Profit factor 56.7:1
    Sharpe ratio 1.563

    Chance of 10% draw down 31.7%
    Chance of 20% draw down 9.5%
    Chance of 30% draw down 0%
    Chance of 50% draw down 0%
    Chance of 100% draw down 0%

    Started $500,000
    Started date 06/01/2010
    Today’s date 12/03/2010

    Closed P/L $199,529
    Open P/L ($13,980)
     
  3. T500K

    T500K

    System T500K Performance Update: (From 06/01/10 to 12/03/10)

    Started $500,000
    Closed P/L $199,529
    Open P/L ($13,980)

    Trades 154
    Profitable 151
    Win% 98.1%
    Avg trade duration 19.0 hours
    Avg P/L per unit traded $0.30
    Annual return (compounded) 93.1%
    Profit factor 57:1
    Sharpe ratio 1.563

    Chance of 10% draw down 31%
    Chance of 20% draw down 9.5%
    Chance of 30% draw down 0%
    Chance of 50% draw down 0%
    Chance of 100% draw down 0%
     
  4. Redneck

    Redneck

    Digging out is a skill…, and an edge…


    Unfortunately the way you’re going about learning it – is nine ways screwed up


    You have ~ $60K to fund an account…, but you’re sim trading with $500K – you will not learn crap that way…

    ========================================================================================

    To make it work

    You can not dig out when price is hell bent – either up or down – that is time to eat it and exit the position….



    You must

    Learn to read PA
    Learn to identify when price is hell bent
    Have a definite all out exit price
    Know how whatever you’re trading acts
    Know how to divide


    Make up you mind at the beginning of the day – if this is the way you plan to trade – otherwise you’ll get caught flat footed, and out of buying power…,

    The other way is to maintain enough reserve buying power to implement it

    ============================================================================================

    Some will probably confuse what I’m saying with averaging down in a loser – DON’T

    There’s a hellofa big difference – never average down – ever


    Being able to read price and make calculated entries in order to minimize a loser, and possibly turn it into a winner – ain’t the same….


    If you don’t understand the difference – then don’t do it…, or practice it on a sim until you understand the mechanics…, and for heaven sakes make the sim emulate your real life ability to fund an account


    Also if you get greedy about making a profit on a position you’ve dug out… or increasing an unrealized profit when it just ain’t going to happen (that hoping crap) – that will kill your account





    There are some very successful RTM, Scale in traders – the skill of digging out is very similar to what they do…..



    btw $60K is ample enough capital to make money – imo



    RN