Trading questions

Discussion in 'Strategy Building' started by snake69, Nov 8, 2005.

  1. snake69


    Below I pulled up an old quote from Stephan31 about his style of trading and am curious about some things. Hopefully, he will be able to answer, but I'd like any opinions on this.

    He says, and I hear this often, that he doesn't risk more than 3% of the account equity on the initial entry. What exactly does this mean? Does that mean, a $10k account, you're initial position is $300, or do you set a stop loss at a $300 loss? In the latter (stop loss), it seems you are still susceptible to gaps or big moves beyond the 3% loss position.

    It was also stated that if the trade is working, two units are added (tripling the position). Just curious what the time frame is for deciding to double up? Certainly it depends on your trading time frame, but just curious about this...and the last part about adding one more unit at the end of successful trades.

    My trades are typically from day trades (not the initial plan, but sometimes what happens) to a few days.


    Original quote from several months ago:

    "someone asked me how i trade. i have been a member since 1999 and mostly lurk to fill up my rather boring swingtrading existence.

    but i can write a general response here after the markets.

    i swingtrade six market complexes--very deep and liquid ones--indexes (nq), interest rates (30 year bond), metals (silver), currencies (eurocurrency), energies (crude), and grains (beans)--and have the ability to trade within these complexes as well.

    typical holding time is several days to approximately 1.5-2 weeks. my win % for over 3,000 trades is approximately 52%. however in my opinion my 'edge' is in position sizing.

    typically i enter any trade with one unit and using basic elliot wave, technical patterns, and S/R I 'add' 2 units to WINNERS on the 2nd entry, then finally 1 unit on the LAST portion of the trade if it continues in my way.

    on one unit entries my cost of doing business is a stop-out loss but TYPICALLY a stop-reverse to go the other direction with one unit.

    my R/R is rather robust, but fairly typical--the last 100 trades were the following.

    crude--15 trades/5 losses/3.13:1 profit factor
    bonds--9 wins/10 losses/4.37:1 profit factor
    euro--9 wins/8 losses/2.72:1 profit factor
    silver--8 wins/10 losses/2.62:1 profit factor
    beans--9 wins/8 losses/1.44:1 profit factor
    emini nq--6 wins/8 losses/3.76:1 profit factor

    i never risk more than 3% of my account equity on 'initial' entry--the 100 trades do NOT include the two additional entries on trades that had follow through.

    i would never sell what i and my partner do--(i don't want the competition for fills on stop entries)--i freely admit i am the world's worst daytrader--so i gave up that ego play about 2 years ago.

    for me--it has helped tremendously to work closely with an older, nfa member on a close basis daily--to split the duties if you will--a team approach if you will.

    that is what i do and how i do it. this is my favorite trading forum to read about stuff though"
  2. mm1


    Stephan31 turned $100,000 into $875,000 in 5 months as described here and here.

    He also turned $200,000 into $2,400,000 in less than 8 months as described here (scroll down or search for Stephen Schroeder).


    Easy. Check this:
    (search for Steven Schroeder)
  3. Steven G. Schroeder Charged with Fraudulently Soliciting More than $1 Million from Clients

    Washington, D.C. ¯ The U.S. Commodity Futures Trading Commission (CFTC) announced today the filing of a complaint on September 27, 2006, against Muskegon Heights, Michigan, resident Steven G. Schroeder, charging him with fraudulently soliciting more than $1 million from at least 10 clients, whose commodity futures trading accounts he managed. On the same day the complaint was filed, Chief Judge Robert Holmes Bell of the U.S. District Court in Grand Rapids, Michigan, issued a statutory restraining order freezing Schroeder’s assets (see CFTC v. Steven G. Schroeder, No. 06-CV- 0705, W.D. Michigan). The restraining order also prohibits Schroeder from destroying, altering, or disposing of his books and records.

    The CFTC complaint alleges that, commencing at least as early as September 2004 and continuing to the present, Schroeder fraudulently solicited and defrauded existing and prospective managed futures account clients, while holding himself out to the public as a commodity trading advisor, including soliciting clients via contacts he established by postings on an internet website, Among other things, Schroeder is alleged to have lied about the size of his personal trading accounts, the profitability of his past trading for himself and his clients, and his educational background.

    Furthermore, the CFTC complaint charges that Schroeder created a fictitious brokerage statement showing his personal trading account with more than $1 million in equity at a time when his personal trading account had a zero balance. Schroeder purportedly lost in excess of $184,465 of client funds by managing their commodity futures trading accounts. In addition to alleging fraud, the complaint charges Schroeder for failing to register with the CFTC.

    In its continuing litigation against Schroeder, the CFTC is seeking permanent injunctive relief, the return of funds to defrauded customers, the repayment of ill-gotten gains, and an award of civil monetary penalties.
  4. ES335


    I wonder if the guy who featured Schroeder on his website will come out or do anything about this...seems like he's still got him mentioned on his site.
  5. Posting on ET that you are a hotshot trader making a zillion bux - Free.

    Really only having $0 and being a total loser - F**king Priceless!!! :p
  6. Neet


    LOL <--literally