What market/instrument have you decided to trade in order to try and make this $100 per day, and what time have you available to trade during this markets' hours? J_S
And don't forget the butter mountains and wine lakes that occured as a result of the EU Common Agrigicultural Policy of the 1980s - which was basically a rigged market for the benefit of farmers, especially the French. http://www.politics.co.uk/reference/common-agricultural-policy Nothing random about that. But at times price charts do seem to display a random walk, which I presume to be the result of a large amount of individual traders/institutions or whatever that follow their own agendas, combining to produce a random like price behaviour. Not really random, but the interactions of the multitude of deterministic processes of individual traders and algorithms are so complex that a random model fits well. At times though it seems that major players dominate price direction in a way that is clear, and it is those times when it is best to trade.
I think the obvious is not so obvious because it's SO obvious and simple that it gets dismissed. That's my answer to the OP
It is very simple, actually! please check in case i am wrong! Step 1. Start = $10,000 (risk money) Risk = n ($100) Trades = 100n Losers = -40n Winners = +60n End = 100n -40n +60n = 120n ($12,000) Step 2. Start = $12,000 Risk = n ($120) Trades = 100n Losers = -40n Winners = +60n End = 100n -40n +60n = 120n ($14,400) ========================== Return = 20% Compound Formula P = $10,000 R = 20 % W = 10 periods Result N = 10,000 (1+20/100)power10 = 10,000 (6.191...) = $61,910 Gain = 61,910 - 10,000 = 51,910 Errors = 20% Adjustment = 51,910 – 10,382 = Net Gain = $41,528 ROI = 415 %
Also, is it possible that you can KNOW what the obvious is, but not understand how to take advantage of it? I asked this question a while back... Any input?
10,000 risk capital 100 max risk per bet..100 max gain per bet 55 wins 45 losses 55 - 45 = 10% Result N = 10,000 (1+10/100)power10 = 10,000 (2.59...) = 25,900 10 period gain = 15,900 5 period gain = 6,105 2 period gain = 2,100 once u do the math u can change everything around to suit ur circumstances..the math does not lie..55/45 would be considered a very bad "system"..lol
DT, as follows. T = Trend (identify) S = Signal (wait) T = Timing (act) Think about it - you must first identify a trend (T), then, once identified you must then wait for a signal (S), and, once signaled you must then look for the best (least risky) time (T) to enter, and act! I don't know about anyone else, but this makes perfect sense to me. Have a look at what Gann said many years ago - I am not suggesting that you have to go learning all about Gann and his methods (drawing angles on a chart to identify entry and exit levels), but what I am saying is that most of what he said makes perfect sense! Look at the first line in this extract - Time = Money! J_S