if Neke is a business trader, would not he actually get the money lost in 2010 (assuming he won't recoup his losses in 2010) back from IRS (from the previous year taxes he paid)?
I believe he did when he reset his account after the First. Check last year's closing figures against the start of this thread.
He makes the bulk of his profits in a handful of trades clustered around Aug/Oct. I think his system does well when funds begin re balancing for the next year. The rest of the year he's always fighting to stay in the game. I'm sure he already knows this from reviewing his stats. His game plan should be to trade automated until his high probability discretionary time frame. having said that, back to the same comments someone posted last year. He should focus on creating free cash flow rather than winning the lottery. His loss from top is around 300K. That easily would have bought a couple of properties generating rent income. Free cash flow. That's how real wealth is generated.
Trading out of an IRA is great...unless you need the money at any time before you "retire". When you withdraw the funds, you pay capital gains tax on the money withdrawn, plus a 10% penalty for early withdrawal. If you make a habit of withdrawing funds regularly, this can get pretty expensive pretty quickly. Of course, this is my understanding and I may be totally wrong. Which brings up other issues I have with the US Tax Code that I can write hours about but I won't - IT'S RIGGED TO BE TOO DAMN CONFUSING.
As we go into a new week, max loss per trade has been reduced to 6K. It's time for an ultra-defensive posture. No more averaging down - take predetermined size upfront, and no more. The effect on the account has been proven negative on the account in absolute dollars all the prior years, no need to keep doing what does not help -- sure ratio of winning trades will come down, but not the overall performance. It is a battle I am committed to winning. Stop losses have been incorporated on all automated trades. Risk will be incrementally sized up as performance improves, and a buffer appears. Will have to commit to implementing the acceleration/deceleration rules. Not sure how you got that. Withdrew 120K end of last year for tax and personal use as earlier posted. Cash withdrawal doesn't count as a drawdown/loss.
Go get 'em neke! Still love the roller coaster! I hope to someday become confident enough in my trading that I can fling around the sums that you do.