I sweep my primary futures account every 2 weeks. The reasons in order... 1) living expense 2) segregated tax planning 3) segregated savings and retirement vehicles (low risk investments) 4) funding of other accounts with different clearing firms, used for different trade styles, backup access to markets, other special or possibly duplicative purpose. Choice of clearing firm is key to this strategy. 5) Just in case another corporate debacle/fiasco happens. Although frozen or lost assets would/should be reasonable in reference to total trading assets, IF #4 is implemented properly. Cheers
debatable. I think traders compounding 10% a month do pretty well. Either way, your comment is true for most trading strategies. However, it doesn't hold for strategies employing tight stops with fixed risk.
Thanks for contributing. Diversifying broker/clearing firm risk seems central to the argument against the all-eggs-in-one-basket approach. Makes good sense.
Why can't you simply spreadsheet a scheme to let half your profits go to the balance, while you pull the other half monthly...This way you get to BE and get paid for your time...Use your balance to calculate your trade size. If you do not have a place to put your monthly paycheck, diversify it to another account..Get into this habit, and use your equity curve to help you decide on your diversification and weighting... The prop trader point is understood... Michael B.
I prefer to let it grow and wait until its a nice size before i start milking it. Just my preference.
Fair enough...each system you trade has its own level...You wouldn't want to trade just one system or methodology...
So you suggest running more than one compounding algorithm simultaneously for one strategy? Or trade at least two altogether distinct strategies at the same time?