I took the 15,000,000 and considered that the final result of compounding some intial capital over 240 days. I use a daily gain on stocks of 2 1/2 % a day as a standard. So compounding at 2 1/2 % gives the divisor for the 15,000,000 bucks you made last year. I had already set up an arrangement (limited POA) to post the annualized results of someone doing this for 2007 with capital I was providing (It puts them at no risk). It takes low 5 digits to get to 15,000,000 in a year by trading every day. By publishing the record of the trading for that time, it will be helpful to others to understand how trading forward from the place we have started works. We do not have a small company like you do. We have individuals doing it as amateurs and working in parallel and sharing their results. We do not understand the level you work at; it seems that it may be one that is similar to what is posted in the P & L threads. If a person is making 40 plus points a day per contract for all of his contracts and he is operating with 10 then 20 then going to 50 contracts as an operating level, it may be different than what you are doing in the team where you are. Todd and I will be at the TE in NYC the end of this week and the beginning of next week. we have camtasia'ed a lot of stuff and we can go through a prerecorded day (with no annotations) in a bout 40 minutes by stopping at trade decision points, logging the trades, and debriefing at the end of the day. We have camtasias on the various levels of display from beginner forest level to the full blown SCT level where two screens are wedged into the camtasia. There you can see all 17 of the leading indicators of ES price. these un annotaed screen displays were collected for our last four day meeting in Tucson. We did many of them one after another in several two ohur sessions folloing about 12 presentations of "batting" type stuff. It sounds like you are using the conventional orthodoxy and are still trading using the techniques associated with gaming and probability. We do not do that at all. we use a pool extraction paradigm where we just continually extract the capital being offered all day long during RTH's. we just extract each segment of profits as the market unfolds. about 20 to 40 times a day the market switches sides; we front run this with leading indicators of ES price. As the market changes sides each time, we change sides as well. that makes 20 to 40 profit segments a day at the expert level of trading. To get to that level you do fewer (and longer) periods of hold and do not reap all that is there for the taking. I listed some questions. I did not expect you to respond. They were posted to just put on the table what could be under consideration. As the years pass these things will come under consideration for people. For me I have been involved in this for 50 years. So I am used to seeing people come upon what I do from many vantage points. They are a continuous source of humor mostly. ometimes a person comes along and understands a piece and then he delves into what eveer he finds to add to his understanding. i never did any of the things you suggest most purveyors do to make money. I am not even a purveyor. I look around and occassionally see a person at inquiry. I see most people doing what you do (yawn and sit in a business and do the conventional orthodoxy). So If I feel like it I answer the question the person put on the table. Luckily most people ignore or pass on my comments. Some engage. I apparently have the capability to "take over threads". It is now called "grobbing" named after a product that i used as a name after being banned at one time or other. What makes the thread become grobbed is just that more Q's arrive and they occupy the thread momentarily until it reverts back to the convnetional orthodoxy that is the tradition of the financial industry. The nature of the pool extraction paradigm is very differnet than the conventional orthodoxy paradigm. It is nearly impossible for a person to go from one to another. That there is anothr paradigm is "unbelievable" from the point of view of the conventional. sometimes I ask people to look at a chart and "zigzag" it with the 20 to 40 market moves that happen a day on a five minute chart. Most people have never seen the market operate so it is difficult for them to make zigzzags on a chart. At the end of next year why don't you sit down with your group and zigzag a chart. It is not 2 1/2 % a day in price movement segments. It would be too scary to say what it really is. Our world is very different than your world. The only thing we have in common is the data that is coming from the markets. So put us down from your point of view. We are very used to it. Be right.
Makes sense to me. I think this is the difference between discretionary and mechanical traders, apparently to the point of noncommunication for some discretionary traders. Spyder, if you can't explain your method so clearly that a machine can do it, then it's discretionary, and no matter how well it works for you, it will never work as well for everybody by the very nature of it being discretionary. Nobody but a complete fool would give away a successful mechanical system.
Well Jack, that was an enormous load of horseshit but i did have a hard time making much sense of it so maybe its just me. I did catch this one though, "It takes low 5 digits to get to 15,000,000 in a year by trading every day." Priceless. Good luck.
I would bet that if you took the collective P&L of all the posters on the 194 pages (in just 1-1/2 months!!!) of Spydertrader's Jack Hershey Futures Trading Journal, you wouldn't have enough money for a Brazilian waxing. They are all trying to figure what the hell you are talking about.
Spydertrader is Todd. jack hershey is Jack Hershey. Doing the SCT is something that may not be your cup of whatever. The conventional, it seems, permeates your ways. It just happens and is something that people do not want to deal with. It is very very tough to think in terms of what the market offers instead of the betting that you are doing constantly. Do you live in a particular population center or can get to one?
A couple of guys down in Australia did fully automate the Equities Methods, and currently trade using those very same methods (fully automated). They often let it run while sleeping. What part of the methods I have explained did you find unclear? - Spydertrader