Prudent Risk Management Is The Only True Edge In TRADING

Discussion in 'Risk Management' started by Buy1Sell2, Jul 6, 2015.

Is Prudent Risk Management the only true edge in trading?

  1. Yes

    53 vote(s)
    29.9%
  2. No

    124 vote(s)
    70.1%
  1. tommo

    tommo

    If trading was as easy as you think we would all be millionaires.

    I have never had trouble with discipline. You show me a system where all i have to do is risk 1 to make 5 and follow it to make money and I will do it. You put up the money. I will follow it.
    If i dont follow the system once I will pay you double what you invested. Deal??
     
    #281     Feb 18, 2016
    Newc2 and Buy1Sell2 like this.
  2. Buy1Sell2

    Buy1Sell2

    I don't recall advocating 50% wins.
     
    #282     Feb 18, 2016
  3. Buy1Sell2

    Buy1Sell2

    Rather I suggested that successful traders don't need to win even 50% of the time.
     
    #283     Feb 18, 2016
    K-Pia likes this.
  4. Buy1Sell2

    Buy1Sell2

    You have now come full circle and are in full agreement with us.
     
    #284     Feb 18, 2016
  5. tommo

    tommo

    Im telling you. I have done exactly what youre advocating.

    A strategy with zero edge with a fixed risk:reward whether that be risk 1 to make 5, or risk 10 to make 1, or risk 1 to make 1 etc etc will always breakeven. The win rates will change.

    Inversed risk reward will have higher win rates. Positive risk:reward lower win rates but will all be around breakeven until costs and slippage are added. Dont know what else to add. This is mathematical fact
     
    #285     Feb 18, 2016
    Newc2, K-Pia and Buy1Sell2 like this.
  6. tommo

    tommo

    No, i am saying i am so certain you are wrong i will double any investment you put in if you can prove you are right
     
    #286     Feb 18, 2016
    Newc2 and Buy1Sell2 like this.
  7. romik

    romik

    Using PMM prevents one from ability to make huge returns due to risk controls, just like the best capital management firms average annual returns are a hellavelot less when compared to performances of individual best traders. A firm that has a top trader will only grant him a percentage of the firm's assets, again due to PMM.
     
    #287     Feb 18, 2016
  8. Buy1Sell2

    Buy1Sell2

    This is False.
     
    #288     Feb 18, 2016
  9. tommo

    tommo

    Not true again. Large firms are constrained by the strategies they can use with such huge capital bases. Smaller traders can be more nimble.

    I keep about £30k in my trading account and on a bad month will make £5-6k, on a good month £15k-£20k. I am at a prop firm so they give me added leverage but probably use about 100k in exchange margin at the most. So making between 5-20% a month. And have been pretty consistent for about 10 years.

    Are there even any prop traders on this forum? They will have similar stats.
     
    #289     Feb 18, 2016
    Buy1Sell2 likes this.
  10. tommo

    tommo

    Go and run a back test
     
    #290     Feb 18, 2016
    K-Pia likes this.