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Yes. Max drawdowns is but one aspect of many important things to look at. Speed of recovery or resilience is important too. Thanks for posting but appreciate your view on my question.

Hi Electric, Forget about what investors would tolerate. What would you tolerate given an expected annual return of 50%? Warren Buffett's long term average return is 30%. I appreciate if somebody can give me his worst drawdown during those years? Something like 50% maybe? How about...

Assume you are trading a 500k capital of your own and has a strategy that generates on average 50% per annum, what is the max drawdown and also the average drawdown that you expect to experience? For e.g., I think Aaron of Schindler's averages about 30% per annum but he has gone through a...

Exactly my thought. Unless you can already at least live frugally off interest alone, you are better off taking whatever route which is the fastest to secure your "critical mass capital". I wonder how much capital the poster use to generate 100k per annum. If he has only 100, 200 or 300k, then I...

Your max drawdown is 18%. What about normal drawdowns? How big are them? For e.g, do you expect 1 or 2 drawdowns of 5% or 10% per year? I understand that you trade U.S shares. How many strategies and trades do you execute in a year? Thanks

Anyone?

Assume I have a strategy that is pretty consistent returning from 30-50% per annum with a more conservative estimate of at least 20% per annum on average, what kind of maximum drawdown are you prepared to accept to trade this system? And what kind of average drawdown (those that happen...

Sorry, I can't see how you can create positive expectancy when "closing out the policy" when the conditions are not right. If that is correct, then you can use the same rules to open new positions with positive expectancy right from the start. This argument that you can create positive...

I have a blog specifically for quotes regarding trading/investing. I am still building the collection. If you come across some good quotes that is not in the blog, please post here or PM me so that I can get it included. TQ http://tradingquotes.blogspot.com/

The call diagonals increased in value from about $0.80 to $3.85? Hows that different from credit spreads in terms of safety? I am also a bit confused from prior posts that in diagonals, you want your short strike to be breached???(obviously not in this case) Or does that only refer to when the...

thanks

I am new to options but I believe with higher rewards comes greater risk. Since almost everybody here seems to think that diagonals are better or more manageable than credit spreads, I would like to know what is the disadvantages of diagonals (compared to credit spreads ) and also under what...

The materials for CFA is most relevant for analyst type jobs and fund mangement. But, a potential employer in any financial field, should know that a CFA charterholder is at least competent, hard-working and coignizant enough to have passed all three levels. Ask all those who have been through...

I include him in one of the trading quotes :- Ultimate Of The Ultimate Fighter Bruce Lee Pound for pound, I think Bruce Lee had the leanest muscle. With his enthusiasm, energy and attitude, I think it is very hard to beat him. Also, he has got plenty of charisma. He is my hero.

My list of Recommended Trading Books

But the put skew will only help in naked selling of puts and not when doing bull put spreads because you are long the lower ( further OTM ) put with higher IV and hence the put skew is working against you...no?

This is a blog specifically on quotes in trading/investing. Quotes

Why the negative tone? Something wrong with his trading?

Strictly on quotable quotes in trading/investing. Quotes In Trading/Investing

OK. It's clear now that you have clear rules even on risk management decisions, which sit on top of the trading signals part of the plan. Yes, your remarks regarding verifiability is consistent with what I had in mind. Hence, I said the longer the track record, the less likely the...