How much commission you willing to pay for 5% per day

Quote from kubilai:

Hmm, things are making more sense the more I follow your adventures.

Had to say $1k margin on ES sounded very aggressive, reckless even, when I first heard it. Should have suspected you're not deploying your whole networth on this one strategy. Assuming you only deploy 10% of your networth, you're really using $10k margin with respect to your networth. You are just using the extra leverage on the ES contract, to get essentially a 10% stoploss on this strategy (account wipeout). Am I following you so far?

Are there other reasons you're not letting the strategy compound fully? Maybe you don't think the strategy can make efficient use of more capital? I'm starting to suspect that all the people with legit claims to very high performance, did it because they didn't let their account compound. A high performance strategy has to hits its capital ceiling very quickly, so you have to withdraw profits and look for new strategies to deploy excess capital.
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This is how it worked out for me/or will work out for me, although the figures I give are hypothetical and I’m still somewhere between the start and the end of this evolution. I don’t want to tell how it exactly went for me nor how my financial situation is.
For those who want to calculate to see if what I say is not a lie: the figures I give are a mix of hypothetical and real figures, so per definition there will be things that mathematically will give very strange results. I do this on purpose to be sure that my financial situation will stay unknown.

Let’s say my net worth was 100% at the beginning. I took 20% to trade. After years , when the system got mature, the results gave very high returns. The 20% that I invested initially became much more. At a certain level the invested capital became/or will become to big in size to daytrade as I do. So at that moment all the profits have to be withdrawn because they cannot be invested anymore in more contracts (it’s impossible to increase size of the position eternally).
This results in a completely different situation: the capital engaged in trading stays at the same level whereas my total net worth continues to grow. So where my original situation was:80% in fixed assets and real estate and 20% in trading, it went in/or could go to 50% in trading and 50% in fixed assets and real estate. At the level where the maximum amount of capital that could be invested, the ratio would change again and % invested in trading would decline again due to the pay out of the excessive amounts. So once the system runs at maximum capacity the risk declines continually. The advantage is that even if you wipe out your account, you still save most of the profits you made, and you can easily start over again.

Than the killing question I always get: how does it come you’re not the richest man in the world if your system is that good.
There are several reasons why:
First, i’m good in day trading the Eminis but size has it’s limitations, so the theoretical calculations of compounded returns are limited.
Secondly, I made a choice: I want to enjoy live a bit. So I limit my trading. If I can make enough money to do what I like to do, and save enough so that my children don’t have to work if they don’t want to, I’m satisfied. So why start a fund with zillions of dollars giving lots of stress and consuming all the time you have so that you cannot enjoy live anymore? Would Buffett or Gates be unhappy if they had to live with 10% of the money they have? My live will lose too much of it’s quality if I would try to trade bigger than I have planned. Money isn’t all.
 
Quote from spike500:

1 tick represent 1.25% of my account.
I trade S&P futures since 1995; first big contracts, later Eminis.
My maximum drawdown in this period was less than 20%.
If i wipe out my account, i can start over again because i only invest a small amount of my capital in futures. If i wipe out my account 10 times in a row i still can continu living as i do.
That's also the reason why im not super rich. I limit the amount of money i invested in it, and i know why.
People that calculate that in x months you can make a billion dollars don't know what they are talking about.
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Spike, if I understand you correctly...

If you trade at a leverage level so high that a move of 1 ES TICK is 1.25% of your account, then let me say you must have been INCREDIBLY LUCKY to have experienced a max drawdown of 20%
(i.e. SIXTEEN TICKS = 4 ES points per your info)

Especially if you've been trading since 1995 (although I assume you didn't trade at such huge levels of leverage during the more wild times)

Globex can go down, broker can go down, ISP can go down, electrical power can go down, unforseen events (intra-meeting rate cut, 9/11 etc). Even broker errors (like e.g. IB stops price would trade through them and still they wouldn't trigger for a few days in 4Q2002, 2Q2003)

And still you achieved a max (intraday?) drawdown of 4pt ES

Hmmmmmmmmmm...
 
My stops are at 2 points (4 ticks). But most of the time when i lose i get out before the stops have been reached. Until now i never had to take 2 consecutive losses of 2 points.
The basis of my system was to minimize risk and optimize entry. The returns were not important at the start, the only thing that mattered was not loosing money. I always buy bottoms in the direction of the trend, so i can put very tight stops. I started trading with a 2000 $ margin but could go at 1000$ after a few years. This happened when i reached the level of over 80% profitable trades. Although i daytrade i take normally only 2 trades a day, i'm very careful in taking positions, i have the discipline to wait till all conditions are fulfilled to trade. Waiting is also trading to me and part of the succes.
I never had problems with exiting trades nor with events like 9/11. But i do not remember anymore if i had any open position at that time. I did have to call my broker already to close positions, but i close immediatelly when i have problems with datafeed or internet, no matter if the trade is profitable or not.

Quote from mtzianos:

Spike, if I understand you correctly...

If you trade at a leverage level so high that a move of 1 ES TICK is 1.25% of your account, then let me say you must have been INCREDIBLY LUCKY to have experienced a max drawdown of 20%
(i.e. SIXTEEN TICKS = 4 ES points per your info)

Especially if you've been trading since 1995 (although I assume you didn't trade at such huge levels of leverage during the more wild times)

Globex can go down, broker can go down, ISP can go down, electrical power can go down, unforseen events (intra-meeting rate cut, 9/11 etc). Even broker errors (like e.g. IB stops price would trade through them and still they wouldn't trigger for a few days in 4Q2002, 2Q2003)

And still you achieved a max (intraday?) drawdown of 4pt ES

Hmmmmmmmmmm...
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my input on what you wrote ...

A: For ES mini Spoos 2 points = 8 ticks not 4

B: the odds of you not having been stopped out
2 X in a row at 2 points ( handles ) in 10 yrs
of trading e mini Spoos is almost impossible.

-My stops are at 2 points (4 ticks). But most of the time when i lose i get out before the stops have been reached. Until now i never had to take 2 consecutive losses of 2 points.-

:p
 
-My stops are at 2 points (4 ticks). But most of the time when i lose i get out before the stops have been reached. Until now i never had to take 2 consecutive losses of 2 points.-

:D Me too
 
hello mr gointernational

thats funny ... you do not know amt of ticks
in 2 points Spoos ... yet you selling some
trading idea / strategy based on Spoos

-For Spike500...-

-What means
2 points = (4 ticks) ?-
 
Hello Mr. SethArb

I am really glad that somebody in this portal at last understands what 1 point means!

But, unfortunately nobody answered my original question - How Much…..

May be you can?
 
Quote from spike500:

Until now i never had to take 2 consecutive losses of 2 points. ... I always buy bottoms in the direction of the trend, so i can put very tight stops.
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imo, I think the claims above probably would be the most important and critical determinant for Spike's outstanding performance. :cool:

That alone could be why more than 5% gains per day, over 80%/ 90% profitable trades, tight stop 2 points (i.e. 5% each point or total 10%), and maximum 20%/ 25% drawdowns can be maintained consistently for 10 years. :confused:
 
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