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Hey fandyur, I typically trade the ES futures and options; however, I've become quite intrigued by the eurodollar. Many traders seek high volatility plays. Unlike most other traders, I prefer more efficient markets. Do you have much mean reversion experience with the Eurodollar, especially...

Hi Robert, Appreciate the thread... Although you're in the red for 2570 during the month, what's been your performance each year since you started the thread? thanks, Walt

echo has 100% payout... Also, many branches of assent has 100% payout as well...

Is NT 6.5 compatible with Windows 7? thanks, Walt

I'm a bit befuddled. Many claim that the futues index (i.e. ES) is much more difficult to trade than the equity markets because you're trading with "pros", it's a very efficient market, it's choppy, etc., etc. However, I find it comforting to know that the market is efficient and choppy, as...

Is your average annual return 14% or is that your monthly return? Also, is it the return on capital or return on margin? thanks, Walt

Based upon the market's move this year, it seems that a relatively safe strategy would have been to enter into slightly otm put & call backspreads. Of course, the tradeoff is that the futures contract is at a greater risk if the market remains range bound. Imagine where you'd be if did this...

We must be careful, as correlation does not mean causation. Remember, many have been "fooled by randomness". Consider the "Power Players" (i.e. B. Stearns, L. Brothers, M. Lynch, several hedge funds and central banks), as many institutions over the years and some of the most successful traders...

Hi Lescor, This journal is truly appreciated. You and Acrary are among the few traders that share insightful information on trading and contend that it's feasible for a trader to earn triple digit returns annually. As to trading equities over futures, how do you spot the "inefficiencies"...

what qualifications are you seeking? I live in Atlanta and have an interest in full-time trading. I have a system that is similar to acrary's monte carlo simulation return projections... Walt

FAS & FAZ

You're correct... I meant to say that in theory it's "POSSIBLE"... but such outcomes are truly RARE...

John Arnold of Centarus is worth about $3 billion, although he's only 35 years old. He has a track record of triple digit returns (100% - 300%) per year for at least 4 out the last 7 years... and he manages a billion dollar hedge fund. At least in theory it's probable for someone with a...

John, Try modeling the synthetic equivalent of the calendar collar (reverse diagonal bear put spread)... particularly, two put side transactions - one atm & the other otm... Walt

thanks for the input guys... It's truly appreciated... Walt

thanks for the advice Opt789... In the spirit of full disclosure, I also came across a blog that confirmed your assertion that one can elect a Non Mark-to-Market Trader Status, which will give you the ability to write-off expenses on the schedule C and report gains on the schedule D...

According to TraderStatus.com, if you elect Mark-to-Market Trader Status, then you'll be able to deduct trading expenses while also avoid paying self employment tax. However, the gains are taxed as ordinary income, and therefore taxed at the federal & state levels accordingly. So, it appears...

thanks for the replies guys... however, a Trader Status will obligate you to pay self employment tax. How can you set it up the way Bright Trading does? They don't pay self employment tax and get to take deductions on trading expenses. I'm not sure, but I believe that the earnings are...

Also, how does a firm such as Bright Trading avoid self employment tax while being allowed to deduct trading related expenses? If my understanding is correct, I believe that it is achieved through mark to market K-1 process. I'm just not sure how Bright does it. If this is allowabel, it's...

I trade futures and futures options. Will a "Trader Status" prevent me from the 60%/40% (capital gain vs. ordinary income) treatment? It sure would be great if I could keep the 60/40 tax benefit and still deduct all expenses related to trading. Any advice is appreciated. Walt