Mav.. you'd make a good con man! If you don't believe my model works then I guess you don't believe any traders, systems, or hedge funds can make money in the market. I have tracked many systems and traders, myself (via c2). I found that short term success.. often no matter how spectactular isn't very representative of future success. However, as I said the longer term succcessful guys tend to continue to be successful.. this goes for both systems and traders. It may be that I need to go to a year out model but there is no inherent reason that my model wouldn't be succesful. Did you ever hear of Turtle traders? I have complete control over who gets funding and can base it on the best statistical metrics and even go over their trading basis, if it interested me. The only reason they might not be successful is the funding so low that it might encourage excessive risk taking-- otherwise the model is as sound as any other trading model -- heck probably more. The risk taking is kept mostly in-check by the funding level and the risk controls. They won't lose multiples of 6k because I already said they'd have a loss limit of 6x their daily loss limit 6*900 = $5,400. Honestly, your very pessimistic and if a trader could hit the TST/PTK combine objectives for 6 consecutive months in realistic sim then I would be willing to fund them at a higher level then the lowest TST/PTK level. In fact, I don't have any systems that can do that nor have ever created a system with that high of a return. Now, would I fund them if they hit TST/PTK goals for 1 month? No because I don't believe it tells me enough. The model I suggest would be easier then the work it takes for me to do develop trading systems, and I believe have a good chance to work going forward. I don't get why you think it would be so much work. The hard part would be the setup. But running it could be easy as browsing trading systems at a site like C2. Most people have a harder time following long term goals too -- even easy ones. Ever wonder why losing weight is so hard? So, I'm guaranteed to collect some of those scout fees. I think this model would work except that I don't believe there are that many people who are really dedicated to trade craft. I'm not convinced there would be more then a handful of recruits at any time. In that sense... it'd never get off the ground. just get a trickle of scouts... But, I have better things to do then argue over hypothetical plans that I'm not going to implement any time soon and will likely never do... lol
I need please the company web or the name where I can find it on google ASAP cause Iam not finding a company named Mav's Combine Proposition
I hate to hijack this thread but to answer your question it really is determined by strategy. This means that we use a proprietary model to determine what your parameters are. Low DDs means more cars, longer holding period, less cars, etc. Traders use their own discretion and methodologies, we do not micromanage. However, we do hold you to your strategy and trading rules that got u accepted in the first place. A typical deal for a day trader with a <10% DD might be: 200k carve out, with 10:1 leverage for a BP of 2mil 50 car starting position limits which can go up once you, Build equity in the account by leaving 50% of your gains in the account each month. 1 year lock up period. High water marks apply. Initial max daily loss is a calculation applied to your other trading stats then rounded up to nearest figure. Once you build equity in account, your max is limited to your equity, though that should never come into play. Oh and in your example, we would likely ask you to find an additional instrument to trade, preferably something that could act as a hedge. Not huge fans of concentrated position players. I think we're paying $1.25 rt on es right now. The CTA does not make commission off of traders as that is a conflict. Profit payout would start at 30%. Current traders are taking home on average $10k/mo, with an equal amount building equity, tho I think they are getting 40% now. And again for those that have reading comp problems, no PMs please.
I just want to state for the record. I have never shit my pants. Nor have I bot depends. Yet.... light profile - I am a risk taker by nature. I have a high pressure job in finance where a fuck up means money and confidence is gone forever. I have been a surfer for 23 years. I was in the USMC in a unit that were ground forward air controllers(scouts that blew shit up with big bombs). I ride motorcycles almost daily to commute. Pressure of my own cash on the line does something to my brain. Like a fucking common sense switch is turned off. I have a model, the model works. I have made upwards of 5k a month selling my calls to funds on a consultant basis. When I have my funds on the line I keep risk tight and size inline with my current poke. BUT - I will do stupid shit like ignore the model, fade the model or trade by the seat of my pants. Exp - I put out a BUY in the SPY @ 131.97 a couple months ago to all my guys(the trade is still open). YET I never participated and worse I actually tried to fade via put purchases several times. I am not smoked by any means, I trade super small because I know my faults well. But risk really is my only saving grace when its my dough...... This is easily the hardest thing I have ever attempted in my life. I have been trading on and off for 10 years. Never full time for obvious reasons and some years not at all. All in all I have probably lost about 30k of my own money over the decade. Not terrible but still net losses. I have made my guys ALOT of money, which is the bitch! So close....yet so far away...thus the willingness for a shrink session or light mentoring. I admit fully to needing guidance at this point in my journey.
Great post sir! Most traders I know, that had your type of a background, all corrected their limitations through a transition to very simplistic trading systems. Real simple mechanical based trading worked to make the breakthrough. The "I gotta be right" crowd, which is many of us, need to dumb things down and get into real basic set ups. When you have very simple trade set ups mixed with smart money management it works damn good. When you trade "simple" you will tend to follow the program more often, and then you develop good dialy trading habits which is a must. Going "simple" and I mean real simple to follow mechanical set ups is what finally lead me to my first automated system. I have several now and they are really basic with few moving parts.
Crispy, that is an excellent and very truthful post. Thanks for your service. Here is an example of how I have created some hard rules for myself to keep me out of trouble. Something like this might help you. Rule #1 Always trade on right side of 3 day pivot. Rule #2 Always get out on A Up/Down in wrong direction. Rule #3 Position size pip value = Account x .1 no more no less. Rule # 4 Never take a position until market closes above/below 3 day pivot on 1 hour chart at least once. Rule #5 A ups/downs and 3 day pivot breaks are not valid until bar close. I suggest at least one rule to keep you on the right side of the market, and at least 1 rule to keep yourself from losing more than you intend. These are just examples.
Interesting. I have started doing some experimenting on ACD but have not really looked at the 3 day pivot. I'll look at some charts and come back if I have any questions or thoughts. Right now it's Saturday night here and the beer downstairs is screaming for attention.