That's a good, relatively safe strategy/plan, it gets tough...I can imagine...when you pass that threshold in options. Start fresh each month, take your prior profits out. It's not that difficult to guesstimate MS's strategy, and/or to formulate your own recipe to spit out 20% per month with options. ...hell, if you're more ambitious/crazy/bold/lucky...you can generate much more than that if you want.
If you want to swing for the fences, this is not a bad idea. Marty uses spreads btw. If it works...why not?
Most traders have roughly 40 to 50 years (e.g. 30 to 80) of experience. If you are saying above record for a few years without long term, it is intentional fraud, probably. For example if his record has annual 50% compounded, then his wealth grows 1.5^50 = 637621500 times, over the 50 years. It is bigger than Buffet and Gates. Unbelievable the compounding!!!
Not even close, not even remotely close my friend. 20% a month and never lost more than 3-4% except a single month in 87'? This is what you believe his track record shows? Where do you people get these ideas. It's shocking the amount of crazy distortions there are around the legend of Marty Schwartz. It gets better every year. I can't wait to come back next year and hear about his 50% WEEKLY gains without ever having a losing month.
Just don't listen to the people on this site that say trading or making a certain % a year is impossible. I laugh at them. You will too one day if you truly spend the time and money learning the game.
For the 20% a month, annual compounding will be 1.2^12 = 8.9161 = 8.9 times(790%) Therefore for the 10 years it should be 8.9^10 = 3118171993 times. 1) With seed of 10K, he should have 3118171993*10K = 3118171M 2) With seed of 100K, after 10 years he has 31181719M. Does he? Probably someone has too much time and nothing to do spend his useless time. That is why he ignore simple math.
He didn't claim that Schwartz was compounding his returns. Good traders usually pay attention to details.
I agree...Compounding your account up to a certain point...and then you take out the profits, and restart. -- you can't expect to have Bill Gates or Warren Buffet's wealth as an individual trader...there are some limitations. (or maybe you Can...if you're really Excellent at slowly investing for the really long haul...you can compound your account that way to the moon...but that safe/slow way is terribly boring -- we traders want our aggressive rewards/returns Now. )
And good traders usually also pay attention to facts and truth. I realize there is no shortage of people who repeat audacious claims about what Schwartz did as a trader, but they are just that, claims and stories. While his record is incredibly impressive, one of the all time greats no doubt about it. His record of course does not come close to the ludicrous claim of 20% a month and only in a single month in 87' did he take a significant loss. That's just silly. The mans a legend, and his TRUE record should speak for itself. No need to embellish it to the point of insanity.