You are correct sir. Thank you for making the post in such a clean and intelligent manner. This is an interesting thread with great information about a competition that anyone who thinks they can trade might eventually want to give a shot (you never know what can happen ). Please keep all non-relevant ET bashing off of it. Thanks in advance, JJ
However $5K is such a small amount, contestants can trade recklessly and overleveraged. Most will wipe out... a few will win. The results of this contest are likely to have a large luck component. A more valid contest would be for significant amounts of money and over a year. (In the '80s and '90s, there were such contests.... one was for 1 year and required $1 Million to participate.) The best aspect of the contest is that the winner may get to manage more money for Robbins and develop a longer, audited track record which may lead to bigger things.
<i>"$5K is such a small amount, contestants can trade recklessly and overleveraged. Most will wipe out... a few will win. The results of this contest are likely to have a large luck component. A more valid contest would be for significant amounts of money and over a year. (In the '80s and '90s, there were such contests.... one was for 1 year and required $1 Million to participate.)"</i> I would wager that the same number of traders would lose money regardless of starting amount. Granted, the $1mil accounts probably halt before hitting zero, not true of the $5k losers. That said, I've known many traders who began with six and seven figure accounts OR grew four-five figure accounts that big and subsequently blew it all away. Some of those traders actually went from seven - eight figures worth to zero balance, added more funds and lost that to boot. $100 skins played on the golf course will attract better players than $5 skins, for sure. But... an equal percentage of bad golfers will pitch in their c-notes and lose just as rapidly as a blue-collar duffer.
It's OK if some gamblers want to get into a larger money contest. They lose and fade into the sunset. What one is hoping to reveal in a contest is talent. "Enough money that it would hurt to lose it" + more time so that a lucky trade or two didn't influence overall results so much, would be important.... if one cared about revealing ability.
A year would be a better gauge of seeing who is best (if that is important), but I'd keep the minimum at 5k. A trader who recklessly uses leverage could quickly work her way up to much, much more, but recklessness and a lack of discipline would produce the same outcome: loss of account and of contest.
That's my point about small money. If someone blows out his contest account, nobody cares. But if someone does well, his results are still suspect.
<i>"It's OK if some gamblers want to get into a larger money contest. They lose and fade into the sunset. What one is hoping to reveal in a contest is talent. "Enough money that it would hurt to lose it" + more time so that a lucky trade or two didn't influence overall results so much, would be important.... if one cared about revealing ability."</i> Well, there is a lot of truth to that. I would say that it's much more difficult getting off the launch pad with a small account than large. No room for error in the beginning with minimal funds. Negating that is the ability of refunding a drained account. Traders can deposit $5k and gun it, refuel it as necessary. Not sure I agree with that aspect, but then again, contestants can start with any amount desired.
yes, very well stated. poor p.logic--he twists, he turns, he ducks, he runs---- does everything except indicate the validity of his system. elite is for professional traders and other market obsessives--guys like p.logic simply can't take the heat--- surf