up 70 % in 3 months, 1000 max drawdown

Discussion in 'Chit Chat' started by limitupmike, Aug 12, 2009.

  1. lol.. i won't blow up.. .. lol i will spontaneously combust before my account "blows up!"

    the 1 are you bi-polar.. lol
     
    #31     Aug 12, 2009
  2. the1

    the1

    Why the fuck would you say that? :D :mad: :p

     
    #32     Aug 12, 2009
  3. cuz 1 minute you said.. hey you are ahead of the curve.. then the next you say you are going to blow up.. lol
     
    #33     Aug 12, 2009
  4. the1

    the1

    Kidding aside, LM. Go do some correlation studies on say, the ES vs the CL or QM. Once you have that number you can create some hedged positions based on the leverage comparison of each instrument. Add some chart reading to that and you have complete control of your risk assuming there isn't a huge variation in the correlation factor -- which CAN happen!

    Now head on over to the bond markets and do the same thing with say, the 5-year and 30-year. Go back to your leverage comparisons and get creative.

    Now, with the Fed about to announce in a few min's is there a trade you can get with the bonds while controlling risk? They are both going to go either up or down but which one moves more, relative to leverage? You're gonna do some number crunching for this one but it sure gives you an edge over those who take a side and use stops :eek:

    Oh, and you also have to have a historical volatility measure on all those instruments. Lots of things you can do with the futures to manage risk. And then....then, you can even add options and play with your delta -- good fun.
     
    #34     Aug 12, 2009
  5. I don't understand your comment.

    To clarify my question, I was asking how he knows when a trade has gone wrong and must exit? Or does he average down into oblivion?
     
    #35     Aug 12, 2009
  6. the1

    the1

    That's before I knew you were averaging on an instrument like sugar. One fucking trade by ADM and you'll lose your house.

     
    #36     Aug 12, 2009
  7. the 1 thank you for your ideas.. I am getting out my old greek option book and learning just liek LTCM did.. no matter what you can still blow up! I pretty much blew up today in sugar.. but it takes a loss to sometimes put you back on the right track and bring your head back down to earth
     
    #37     Aug 12, 2009
  8. ok understand since you said .. with sugar.. i agree with you.. licking my chops and moving forward..

    kazz.. i get out when i feel like i am wrong in my assumption.. If i felt like the amrket was going to sell off.. i continue to sell into rallies.. when I get the feeling that i am totally wrong i exit it all step back and look for a new idea.. i do take losses! but it is me taking them not a stop.

    It has nothign to do with the amount of money etc. today in sugar i got out and i knew once i got out it would sell off and it did .. but guess what i realized it was too big of a contract for me to trade in with my account.
     
    #38     Aug 12, 2009
  9. funny how this was moved to chit chat and the snake bite forum is in teh economics area? LOL.. there is a hardy debate going on with great information in my thread, but of coure teh powers that be here on ET move it as far away as possible for anyone to see it and use it. Not sure why this is but in this forum it is clear that very few users or moderators actually know much about trading..period..
    Peace out.
     
    #39     Aug 12, 2009
  10. shorted spy at 100.91 still holding.. no top.. oh my god i am going to blow up sooon!!!!
     
    #40     Aug 12, 2009