Trader P/L 2005

I wasn't saying it should be easy. I was responding to joeyata being skeptical of mk for posting a method that was currently working, since everyone would jump on the bandwagon taking his trades away.

 

hey most traders need motivation and if this provides it more power to you. everyone wants to be surrounded and know winners as it motivates one to try to get to a higher level. i enjoy reading all threads and like to pt out all sides. i guess i've been stuck in aroom for 15 years trading and never needed anyne to motivate me were amny need the motivation. i wish all great success as the sky is the limit in this game

 

I've been watching this thread for a while and have enjoyed seeing other's results. Instead of posting a blotter, I'll just say that my trading profits range from $100 - $1000 net per day with an average of about $300. Not exciting but it pays the bills and I'm rarely down, which helps psychologically.

 

mschey, i don't agree with you for several reasons:

i don't know of ANY professional and well know trader or fund that uses these type of trading. So that raises questions for me.

You talk about 5000$ per hour of trading? That would mean that Mnx has to trade more than 1 million shares an hour at his actual profit rate. But he does "only" 1.2 million A DAY. Your math is not correct. You probably forgot to divide the profit by the hours of trading.

Look at Quadriga, they were very successful also. You can see the past risk, but you can never see the future risk. And as it is unknown it is better to have a big margin than a small one.

It's like driving a car at 150mph. You well be faster in place than me, but one day i will be first and we will never see you again. By driving carefully you will almost every time arrive at the place you were heading at, and if you have an accident, it will be a small one, as you drive carefully. At 150 mph you wiil be always faster, till the day you crash. After that it will be "GAME OVER".


What i would like to know is: what is the invested capital needed to do these trades?
I can understand that this question will not be answered, but if we know this amount it would be possible to judge on the real value of this kind of trading. It makes a hell of a difference if it would be 5000 or 50000 $.
I read about 30000 oracles in an open position, so i guess it will be a considerable amount of money.

 

Magna,

you are mixing up criticism with something else. The value of a thread is higher if critical questions get good answers. It will confirm the real value of the thread.
If it's only permitted to nod YES to all that is posted, the thread has no real value anymore.

 

Always be careful with posted performance, it can be easily manipulated.

I "optimized" a statement from Mnx. A statement that i believe to be real in it's original version. So my version is not intended to discredit Mnx, it's just to show what can happen.

 

The rule of big numbers are very common among professionals. I dont know many funds who dont do it. They want to reduce unsystematic risk so they invest in many companies for instance.

ORM

 

I'm not talking about the big numbers of trades; i'm talking about the tiny little margin that is shown (0.0045$ per share traded!).

Big numbers are necessary for statistical reliability of the risk.
Big numbers in profit per share are also preferable.

 

Large numbers are precisely necessary for trading consistency DUE TO having a very small profit margin on each trade. If you had an especially large average profit per share, then broad diversification would not be as important. However, I think we can all agree that it is easier to find a strategy with a small edge than a large edge. As a result, the wise trader will trade that small edge, placing a small amount of risk in each trade, and diversify over a large number of trades in order to increase returns and consistency, with small risk.

Nothing surprising here, IMO. Actually, not too far different than a casino, 'trading' with their clients at the roulette wheel. Their average edge per 'trade' is small, but diversified over a large number of bets, they rarely have a losing day at the roulette wheel.

-Eric