I surpassed my trading mentor, but his way is still better, How?

I see some older more experienced guys posting here

you can tell by low number of posts and older date they joined ET

but I would appreciate if someone responded to this

If you are a trader with lets say 70% accuracy, increasing size won't change your strategy, only your profit for the better

right????
 
So do you still wanna die?



Quote from confused,NOT:

Well he wasn’t really mentor, the type that would give me his edge and explain how to use it.

But he did point me in the right direction many times, he knew I would figure things out but he didn’t give spelled out answers.

Well anyway, long story short, (hey notice “long” and “short” here)

Anyway

I make now double the return he makes, keep in mind I am not talking recent bull drive here, I am talking overall. But he told me he would never trade the way I do, even though I do greater return on portfolio.

He trades everything, oil, stocks, futrs, you name it. I trade only futures.
He does around 15 trades per day.

I trade 2 times per week. I trade very large size. He trades small size.

He is trading for the last 15 years, I’ve been at this game for only 2-3 years.

Now here is the thing, I do better return, yet I can’t help but feel that he still knows what he is doing better than me.

Why wouldn’t he otherwise, use my style of trading.
More...
 
Quote from confused,NOT:



If you are a trader with lets say 70% accuracy, increasing size won't change your strategy, only your profit for the better

right????
More...

It totally depends on your R/R. You can be right 30% of the time and be extremely profitable trading less than half of your money at any one time with almost zero chance of ruin, or you can be right 70% of the time, use leverage, and still lose money, and have a higher risk of ruin.
 
Quote from confused,NOT:

Well he wasn’t really mentor, the type that would give me his edge and explain how to use it...

Why wouldn’t he otherwise, use my style of trading.
More...

I also don't consider him to be your mentor especially since your using a completely different trading style.

However, if your using remnants (many aspect) of what he taught you and if such was done via in person collaboration...

He was mentoring you.

Regardless, why wouldn't he use you style of trading?

As traders we have this need to do it our way even if someone shows us the direction to the pot of gold.

Thus, its not uncommon for someone to learn something and then completely modify what they learn to better suit their own personality.

Also, he may be aware that your methodology is more profitable while his methodology has endure many different types of trading conditions (15 years you said about his trading experience).

Very tough to convince an old dog like that to stop using something that works for him and start using something that's new to him and may not be suitable for his personality in applying the method.

Lets put it this way, lets say you meet another trader that's profitable and using a completely different trading style...

What are the odds of you stop using your profitable method and start using the method of that other trader especially if he saids he has only been trading 2-3 months???

* Your mentor has been trading for 15 years.

* You have been trading 2-3 years

* Another trader has been trading for 2-3 months

My bet is that you'll stick with your method.

Quote from confused,NOT:

...If you are a trader with lets say 70% accuracy, increasing size won't change your strategy, only your profit for the better

I don't get it, it seems so simple to me.
More...

Simple answer...what ever size your currently using...

Tomorrow I want you to trade via 3x the size.

If you will not do it...explain why and you'll have your answer.

Here's an analogy...if a boxer consistently lands at least 70% of his punches...

You can do some harm to his game plan by asking him to throw more punches especially if he's already consistently winning his matches.

Simply, its not all about the strategy.

There's many other things involved besides the entry/exit signal and doing more trades or increasing the size can increase his risk exposure or cause more harm in his ability to be psychologically prepared to manage size increase.

Mark
 
right....bit there is a tradeoff as if you are utilizing increased size but have your 30% bad trades come in a row of bad luck/crazy market whatever you have had a huge drawdown compared to the more conservative sizes if he has the same 30% go against him during a poor strech----its when the 30% of losing trades during the year comes that you can`t predict.

I am not saying one is better than the other.....just explaining one possible argument against your strategy.

This is much more complex than we can get into here..........because if you can acquire a larger bankroll faster....it can serve as cushion....and provide increased leverage.....which can increase your winning percentage to let`s say 80% from 70%..........as the more leverage you have.....provides more diversification opportunities.....complex hedging abilities tht are near riskless, and you need less points per trade with larger sizes---although markets must be really liquid----plus you can manipuate the market with size in my opinion.
 
nihabashi you nailed it

yup, that is exactly what is going on,

my way could be better

just like this guy who traded for 3 months could have better way

case closed. lets all go home:)
 
Traders are stubborn, especially older ones. 9 times out of 10 they wont change the way they trade if they are consistent. Why would they? Why do you think there are markets? Everyone thinks they are right. The market is essentialy just a bunch of people sitting around there computers making an opinion. Everybody has their own equity level, goals, and emotions. Best of luck to ya. From personal experience, whenever I get cocky and think I am the king a humbling experience is around the corner.
 
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