Are any traders profitable for 5+ years?

S

Stoks

Just wondering if any exist because I haven't met any. It would be nice to know some intra-day traders are consistently profitable. If you are one, and have a minute, I would be grateful to hear about any of your experiences and I have a couple questions:

Thank you in advance.

1. What is your primary style and time frame of trading? ex. swing, market making, event, intrady, weekly...

2. Do you backtest? If so using what program? I use amibroker.

3. What percentage of your orders are limit versus market?

4. What is the best piece of advice you have related to long term survivor-ship in the stock market?

A little about my trading: US Stocks and intraday only, I use 2 trades- volume spike counter trend at 2x ATR, and earnings trend on day of announcement if AVG ATR>2. I could get more technical if someone wanted to. My problem is that I can't seem to get a 100% mechanical system with an acceptable draw down. So, my entries and stops are placed according to natural levels etc. Because my system is not 100% mechanical I am at prone to over trading, and I do. I would like to become more consistent. Advice?
 
Quote from Stoks:


A little about my trading: US Stocks and intraday only, I use 2 trades- volume spike counter trend at 2x ATR, and earnings trend on day of announcement if AVG ATR>2. I could get more technical if someone wanted to. My problem is that I can't seem to get a 100% mechanical system with an acceptable draw down. So, my entries and stops are placed according to natural levels etc. Because my system is not 100% mechanical I am at prone to over trading, and I do. I would like to become more consistent. Advice?
More...

I've backtested both strategies, there is no edge.
That's why you're not consistent.
 
Quote from nfactorial:

I've backtested both strategies, there is no edge.
That's why you're not consistent.
More...
that may be why not consistent, but you don't need an edge to make money.

The best systems when backtested blow up over time. If you accept this and realize if you keep doing what you are doing you will lose, then all you have to do is outlast the eventual blow up until you no longer need to trade.

sclapers become day traders
day traders become swing traders
swing traders become position traders
position traders become asset allocators

finally you just put it all in the S&P 500 index fund and don't worry about money anymore
 
Quote from Stoks:

Just wondering if any exist because I haven't met any. It would be nice to know some intra-day traders are consistently profitable. If you are one, and have a minute, I would be grateful to hear about any of your experiences and I have a couple questions:

Thank you in advance.

1. What is your primary style and time frame of trading? ex. swing, market making, event, intrady, weekly...

2. Do you backtest? If so using what program? I use amibroker.

3. What percentage of your orders are limit versus market?

4. What is the best piece of advice you have related to long term survivor-ship in the stock market?

A little about my trading: US Stocks and intraday only, I use 2 trades- volume spike counter trend at 2x ATR, and earnings trend on day of announcement if AVG ATR>2. I
could get more technical if someone wanted to. My problem is that I can't seem to get a
100% mechanical system with an acceptable draw down. So, my entries and stops are placed according to natural levels etc. Because my system is not 100% mechanical I am
at prone to over trading, and I do. I would like to become more consistent. Advice?
More...

1) pullbacks in trends, intraday, swing. writing naked options.
2) yes, tradestation, sierracharts, mechanica.
3) entry is market, exits limit.
4) knowing why you are trading. Knowing about your own limit beliefs and recognize them as why they have an influence on your abbility to trade succesfull. Knowing how to change your thinking and feelings about important events.

Advice: longterm profits comes from survivorship of any disaster that can happen when you are in the market. Always think about the risk you are taking, not the profit you could hav made...
 
for instance, I was a stockbroker and started trading with a very small amount, less than 1k, and the only time I ever added to that account was when an uncle with no children died and left all his nieces and nephews 4k. I gave 2k to may wife and put 2k in my trading account. Now I could move from the Midam to the CBOT and trade with the big boys.

When I started my kids were in grade school. At first I was making a little money as a broker until one Christmas Eve the owner called me into his office and said, "Do you realize that 90% of your commissions are from your own account?"

They dropped my liscence but let me keep my desk and trade my own account and gave me a good commission rate.

By the time I finally blew up that account my kids were all in high school. So yes, I was profitable (at times very profitable) for more than five years. Raised 3 kids on less than 5k.

My strategy was pretty simple. Always enter at the market and never exit until you get a margin call.

It was the back testing that got me. One year the wheat market didn't perform as it usually did.
 
Quote from oldtime:

for instance, I was a stockbroker and started trading with a very small amount, less than 1k, and the only time I ever added to that account was when an uncle with no children died and left all his nieces and nephews 4k. I gave 2k to may wife and put 2k in my trading account. Now I could move from the Midam to the CBOT and trade with the big boys.

When I started my kids were in grade school. At first I was making a little money as a broker until one Christmas Eve the owner called me into his office and said, "Do you realize that 90% of your commissions are from your own account?"

They dropped my liscence but let me keep my desk and trade my own account and gave me a good commission rate.

By the time I finally blew up that account my kids were all in high school. So yes, I was profitable (at times very profitable) for more than five years. Raised 3 kids on less than 5k.

My strategy was pretty simple. Always enter at the market and never exit until you get a margin call.

It was the back testing that got me. One year the wheat market didn't perform as it usually did.
More...

Like you, I got my start at the old MidAm(we called it the SkidAm) back then. Been doing this crap for my own account since 1978. Some good years, some not so good years, but still independent and not worrying about clients etc.
 
Hello Stoks,
Nice to meet you. I am going to answer your questions in order.
1. Divergence in a 5 minute time frame.

2. No.

3.All market.

4.Risk and money management are of paramount importance.

The longer the time frame the bigger the drawdowns.
I have never found mechanical systems to be appropriate for trading.
2%-3% of your account is the maximum total total exposure you must restrict yourself to at any given time.
These disciplines do not come naturally to most traders so it is helpful to compose a sentence which incorporates these ideas,
"I will never, ever, overtrade or expose more than 2% of my account to risk at any time" and repeat this to yourself over and over when out walking and at bedtime to programme your subconcious and develop sound trading habits.
Hope this helps.
 
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