By the way, when I say "points", what I'm referring to is "per contract". My belief is that you should start with one, not multiple contracts until your learning curve goes up. I'd look at your account monthly....at least that's what I do. As the month progresses and assuming you're profitable, increasing your number of contracts can make sense...since it's on "their" money. If you're not making money stay with the minimum number....you're doing something wrong. OldTrader
OldTrader, Out of curiousity; What kind of avg daily point gain does Linda put up??? PEACE and good trading, Commisso
Can't really tell you. I thought that perhaps that I had read that in her interview with Jack Schwager in New Market Wizards. But when I took a quick look I couldn't find it. Maybe I read it elsewhere. In here interview with Schwager though she says her average gain is $450, average loss $200. That's probably on the bigger contract since the books was published in 1992. It may be too that her numbers have changed since them since the market has changed since then. She claims to be right 70% of the time. Keep in mind that I don't audit her or even know her.....so whether any of her claims are true I couldn't say. I read a transript of her chatroom once though and a comment was made by someone else that he had never seen her have a losing day. You can attend her chatroom session on a trial basis I here...that would probably tell you alot more. OldTrader
I trialed her chatroom a few months ago. Just didn't seem to do a whole lot of trading in the S&P's. Maybe one or two scalp trades a day back when there was a whole lot more volatility. She must be good though since she had quite a few people in her room. Has anyone else had any experience with her room? I think it is $300 a month.
Are you saying that 2-3 points is as good as it gets? Or just that 2-3 points is good for a "system"? OldTrader
Thanks Old Trader and Commisso for your very constructive help. FWIW, the swing system I discussed has been traded and backtested over the past 5+ years. It has produced 500+ points each year with a max DD over that time of 90 points.
right, very much confusion here. Daytraders rule of thumb is usually about 5k in account per contract. So 1 or 2 points a day turns that 5 k into 1/5 mil about every year. Swing traders are more like 20 to 25k per contract, so they would need about 4 pts a day to meet the same goal. I blew up an S&P account trading a ma crossover. It blew up in Aug of 87. Another couple of months and it would have hit the 50 pt down day in Oct. MA systems always make money over time, it's just you never know how much you need in trading capital before they make money. And when it comes to outlasting a trader, those systems can be very tenacious. But almost all trend systems that I know of are some variation of a crossover.