Losing Trader + Losing Trader = 2 Winning Traders

Discussion in 'Strategy Building' started by Ripley, May 26, 2005.

  1. If two consistently losing traders gang up and trade together, then they both could be net positive at the end of the year.

    One take LONG and the other go SHORT on a volatile instrument, and one cut the losses fast, while the other one let the profitable position ride. Split profits and try again.
  2. A single trader could trade this plan from 2 separate accounts.

    But both a/cs would probably lose if its a choppy market.
  3. kubilai


    That's the age old question of whether you can make money using money management alone. Good luck with it.
  4. I know its illegal for an individual to be long and short on a single stock at the same time even using different accounts. But, I don't think thats the case with futures.
  5. kubilai


    Ok so the equivalent strategy for a single trader is to NOT TAKE A POSITION until one of the imaginary traders cuts his loss, at that point you take the position of the imaginary trader that's letting his profits run. It'll work out the same as the two trader scenario, only you save one roundtrip and some commissions.
  6. Leave the hedge on and go for one tick. Set a target on one side and a stop on the otherside with the trigger based on a percent of ROC...

    Shhh..I have already said enough..

  7. WOW. that brings us back to square one: 2 losing traders.
  8. Two losing traders are closer to a cluster losing trader than anything else...:D
  9. I think kubilai is right, because taking two real postion
    at first, costs you:

    1tick spread winposi+ 1tick spread loseposi=2 tick lose

    0.25tick winpos commi+ 0.25tick winpos commi=0.50tick lose

    Again where to cut lose and how much to let profit run
    without knowing when move turns against you is another
    challenge you have to face

    it doesn't work
  10. jem


    I would surmise that losing traders lose because they either eat like birds and shit like elephants... or they just get nicked to death with a lot of small tight stops.

    Or they trade to large.

    so two losing traders would just compound their loserness.
    #10     May 26, 2005