Let's say you want to subscribe to a website/newsletter that gives you trading signals or teaches you how to trade. (if you don't want to, please do not vote.) The website has 2 traders, the subsription costs are the same. Which one would you subscribe to?
I voted for trader #1, because although trader #2 maybe has bigger balls, I think trader #1 is the better trader....
I voted for #1 also, because that trader doing 50 lots will only be in business until one of those "fat fingered" days comes along and he gets his clock cleaned. Also, the guy getting 4 pts probably is trading more than just noise.
If we assume consistency as stated, then surely the size they put on is totally irrelevant? Trader A harvests double the number of points per day per contract as Trader B so (s)he is clearly the superior trader. But perhaps you are implying that whereas Trader B has a lot of confidence in their method, Trader A lacks it and the disparity is reflected in the size they put on. If this is the case then there might be some reason for choosing B.
hard to tell from this limited info imho ultimatively the goal is to be as consistent as possible to be able to size with confidence. the "pts per day / per car" do not matter that much, it's more the risk you need to take each & every day that matters to generate consistent returns. so more questions: Which drawdowns do both traders have? What is the avg return to risk ratio in their trades? How long are they in the market? best, cosmic
Needs to be a lot more choices. Hows 'bout trader making 10 pts, 20 pts, 80 pts 200 pts? --4 is the maximum? I don't think so.
That's such a weird poll/question. The question is really about consistency. There's a lot of questions regarding risk... time in trades... stress involved in opening the trades... etc. The point of any trader is to CONSISTENTLY make a profit. If you do this, size is only a function of account size.
I agree, that there are other factors to look at, but let's say those datas are not aviable, the only advertised info is the daily average return. I will let somebody else answer Buy1Sell2's question, he clearly has no idea what we are talking about...
Not true. A trader can be consistent AND comfortable with trading up to 3-5 cars but freeze up above 10, even if his account size allows him to trade that many...
I'll take the trader who teaches you how to trade, not just provide signals or something to imitate. What he makes is irrelevant.