Agree if you trade naked and add margins on top. I learned my lesson when I started writing options back in 2013.
Truth is likely that they make more money selling the signals than trading it. However you gotta give him that the system is still around. However, since it is a system, I would like to see historical backtest results. I did not see that on World Cup Advisor. How would you judge a "system" then?
What does that even mean? You can do the same by trading with less leverage. Suddenly, you have strong hands...
%%Most likely that means, they have made enough profit, with drawdowns, ETFs for examply, so, drawdowns don't mean panic selling...…………………………………………...
For me it means that it would then be possible to have another 50% drawdown right on top of it and that would be disastrous.
Yes, that means I will be down 75%. I understand it is important to avoid risk of ruin so I can survive to fight another day, but a maximum drawdown of say 50% by itself is not a disaster if I trade my own funds and not have to withdraw? Some of us accept the fact that we do not have the capability to generate alpha so in going for higher absolute returns we go with higher beta and embrace the volatility that comes with higher beta. I welcome any feedbacks you folks are willing to give me.
By that logic, a 10% drawdown could get 10X worse and wipe you at as well. With that said, I understand (and agree with) your point that max drawdowns will almost certainly be exceeded in the future. Next time it may be 55-60% instead of 50% or even worse--depending how well the system is designed and what the market does.
50% can become 80% and there is no reason why not. Trader should play slot machines in Atlantic City.
You may need to contact them directly. I'm sure it backtested well or they'd never trade it. If it has a 13.5% return and 50% Max DD real time, it probably had a 40% return and 30% MDD in the backtest. I'm not knocking Williams, either. That's pretty much how all these systems play out when you trade them live. The fact this one has lasted 5 years and beaten the S&P 500 puts in the top 5% (even though it's risk-adjusted returns aren't very good).