Trader P/L 2006 Questions and Discussion

Discussion in 'Trading' started by polpolik, Aug 9, 2006.

  1. Yeah I guess account size was the wrong target, I should have meant maximum exposure instead. For the record, I currently trade between 1-2 lots in EUR, JPY, GBP, and 2-4 in CAD.

    I limit myself to single lots in ZB, QM, ZI etc cuz I'm the consummate contrarian indicator in those markets. :)
     
    #311     Sep 14, 2006
  2. So it's the liqudity constraints that make it hard for equities, but not so in futures, so a large account in futures with a smart trader should be able to bypass the liquidity problem and better maximize their strategy.

    That makes sense to me, if I understand you right.
     
    #312     Sep 14, 2006
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    #313     Sep 14, 2006
  4. I made the reference to constraints in stocks because there are some strategies that just max out at a certain point, which is not usually the case in futures. But I guess my point would apply to equity traders as well.

    Take a trader that makes a consistent $500 daily trading say euro futures. Knowing that his max intraday exposure was 1 lot or 20 would tell you whether he is a genius or a (so-far lucky) fool.
     
    #314     Sep 14, 2006
  5. kiwi,

    I don't know what others might get out of posting P/L's for themselves, but for me it's to humiliate myself as much as possible when I do stupid things and post outsized losing days.

    No better way to get over one's ego in not wanting to take a loss than to magnify it a hundred-fold on a public forum. :)
     
    #315     Sep 14, 2006
  6. LMAO ... thanks for that illiquid. Excellent. :D
     
    #316     Sep 14, 2006
  7. It all depends on trading style really. I get one red day every two months, and I'm nowhere near a great trader. But I'd have to agree that amongst all the different trading styles that are applied by members here, it's hard to believe that red days are so rare for just about everyone. Then again, the most obvious answer is that some red days are ... "omitted" ;)

    Now let the first-post-ever flaming begin ?
     
    #317     Sep 16, 2006
  8. Excellent point illiquid. Since posting on the PnL thread my average daily profits have actually decreased and so have my losses for that matter. I thought about stopping posting but then realize that this is the next step to take to not have these external influences, in any form, from affecting me. So I have stated this publicly, so it shall be done. :D
     
    #318     Sep 16, 2006
  9. Just a quick observation, if I may. There is no question that many of the numbers presented in the P&L thread are impressive, and I suspect that a sizeable proportion of them are actually valid. However, here's the thing. Unless the reader knows the trader's capital base, there is a lot missing in the way of context. The first question that comes to mind whenever I read about a trader's or fund's absolute dollar earnings is, what is the equity or capital base? Don't you? And if so, then why would it be any different in the P&L thread?
     
    #319     Oct 5, 2006
  10. How do you define "capital base"? If I have $100,000 buying power available to me, and today I use $20,000 of it only, and tomorrow I use $50,000, what is my capital base?
     
    #320     Oct 5, 2006