Is "digging" an edge?

T

T500K

I don't have an edge but I am good at digging myself out of holes, so to speak. I have an test account on C2. T500K is on test mode so nobody but me can view it. Here is the performance for the past six months. I have around $60,000. But a trader with this kind of amount of money has close to zero chance of ever making it.

T500K Statistics: (From 06/01/10 to 11/24/10)

Started $500,000
Closed P/L $162,099
Open P/L ($19,090)

Trades 138
Profitable 136
Win% 98.6%
Avg trade duration 19.7 hours
Avg P/L per unit traded $0.30
Annual return (compounded) 74.3%
Profit factor 49:1
Sharpe ratio 1.291

Chance of 10% account loss 29%
Chance of 20% account loss 14%
Chance of 30% account loss 0%
Chance of 50% account loss 0%
Chance of 100% account loss 0%
 
System T500K Performance Update:

# of Trades:
Number of Trades 154
Profitable 151
Win% 98.1%
Avg trade duration 19.0 hours
Avg P/L per unit traded $0.30
Annual return (compounded) 93.1%
Profit factor 56.7:1
Sharpe ratio 1.563

Chance of 10% draw down 31.7%
Chance of 20% draw down 9.5%
Chance of 30% draw down 0%
Chance of 50% draw down 0%
Chance of 100% draw down 0%

Started $500,000
Started date 06/01/2010
Today’s date 12/03/2010

Closed P/L $199,529
Open P/L ($13,980)
 
System T500K Performance Update: (From 06/01/10 to 12/03/10)

Started $500,000
Closed P/L $199,529
Open P/L ($13,980)

Trades 154
Profitable 151
Win% 98.1%
Avg trade duration 19.0 hours
Avg P/L per unit traded $0.30
Annual return (compounded) 93.1%
Profit factor 57:1
Sharpe ratio 1.563

Chance of 10% draw down 31%
Chance of 20% draw down 9.5%
Chance of 30% draw down 0%
Chance of 50% draw down 0%
Chance of 100% draw down 0%
 
Digging out is a skill…, and an edge…


Unfortunately the way you’re going about learning it – is nine ways screwed up


You have ~ $60K to fund an account…, but you’re sim trading with $500K – you will not learn crap that way…

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To make it work

You can not dig out when price is hell bent – either up or down – that is time to eat it and exit the position….



You must

Learn to read PA
Learn to identify when price is hell bent
Have a definite all out exit price
Know how whatever you’re trading acts
Know how to divide


Make up you mind at the beginning of the day – if this is the way you plan to trade – otherwise you’ll get caught flat footed, and out of buying power…,

The other way is to maintain enough reserve buying power to implement it

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Some will probably confuse what I’m saying with averaging down in a loser – DON’T

There’s a hellofa big difference – never average down – ever


Being able to read price and make calculated entries in order to minimize a loser, and possibly turn it into a winner – ain’t the same….


If you don’t understand the difference – then don’t do it…, or practice it on a sim until you understand the mechanics…, and for heaven sakes make the sim emulate your real life ability to fund an account


Also if you get greedy about making a profit on a position you’ve dug out… or increasing an unrealized profit when it just ain’t going to happen (that hoping crap) – that will kill your account





There are some very successful RTM, Scale in traders – the skill of digging out is very similar to what they do…..



btw $60K is ample enough capital to make money – imo



RN
 
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