Making a living with a $30K account

[l2tradr]

Quote from mde2004:

I would be surprised if he don't blow out in a few months.

Although I hope otherwise of course, I agree

 

[rcanfiel]

Quote from l2tradr:

While I agree with your post, I'd appreciate if you left out the quotations around the word friend. It's really not cute. I said it before and I'll say it again, if it was ME that was asking the question, I would just do it. What, my e-reputation from ET will get tarnished? Please...I was only trying to get some insight from some seasoned traders on HIS approach, which I mentioned a million times I don't agree with. He did it anyways, I hope it won't cost him, but he's a big boy.

Quotations are used to denote a segment of text extracted from another's work, in this case, the previous post.

You are misunderstanding its usage here. There is no tarnishing.

 

[rcanfiel]

Quote from l2tradr:

Although I hope otherwise of course, I agree

There is little reason to hope anything otherwise. The thumbprint of a supposedly successful system that went awry is, to have a seemingly good track record for a long timer period, then to blow up in a few days to weeks

A number of people follow systems on places like FX-AUTO, collective2, and other places. The equity curve often looks like a bird flying into a window. A sudden sharp plummet to the ground.

That is the most likely outcome to someone thinking they can make a living off $30K - become $100K. It is almost a mathematical certainty, if you understand Risk of Ruin. It is a matter of WHEN, not IF

 

[topmo]

12tradr.......please post how your friend does, daily, weekly, etc., along with his comments and state of mind, and size of account.

 

[l2tradr]

Quote from rcanfiel:

Quotations are used to denote a segment of text extracted from another's work, in this case, the previous post.

You are misunderstanding its usage here. There is no tarnishing.

Sorry, i guess I misunderstood you

 

[l2tradr]

Quote from topmo:

12tradr.......please post how your friend does, daily, weekly, etc., along with his comments and state of mind, and size of account.

I will try to give an update whenever I get one.

 

[dwitherell]

Quote from rcanfiel:

there is no "just pull in 60-100K" from $30K. Few do that. Very few do it longtermm. You are talking about over 300% annual, after costs, on the upper end.

If he made that kind of return, he could pull in $100K a year just from running a simple advisory service, without risking anything!!!!!!!!!!!!!

That's absolutely correct! (I got to page 7, and didn't get a chance to read the other replies)

Absolutely no way he's going to get 60-100m/year income from a baby sized 30m. Blows my mind that someone would even try with that expectation year, after year of 60-100m income with the 30m to start!

This person, if could pull this off, would become "celebrity" status after two years of 300+ % returns. LOL!

If your friend can consistently compound 2% per Month, for a steady two-three years, he will get a job getting paid BIG. That's if the amount of risk, and leverage used in getting that return isn't crazy. Maybe a Standard Deviation of around 16% or less.

 

[WyckoffTrader]

Trading prop with a leverage firm and your own account and trading other people money through managed accounts or a fund is not even comparable.

I know plenty of traders that start the year out with 50k to 100k in their account and pull in 500K-7500 on good year and 100k on slow year.

Can they scale that up to $50M....no fucking way. two different business models.

 

[l2tradr]

Quote from dwitherell:

That's absolutely correct! (I got to page 7, and didn't get a chance to read the other replies)

Absolutely no way he's going to get 60-100m/year income from a baby sized 30m. Blows my mind that someone would even try with that expectation year, after year of 60-100m income with the 30m to start!

This person, if could pull this off, would become "celebrity" status after two years of 300+ % returns. LOL!

If your friend can consistently compound 2% per Month, for a steady two-three years, he will get a job getting paid BIG. That's if the amount of risk, and leverage used in getting that return isn't crazy. Maybe a Standard Deviation of around 16% or less.

a) He doesn't want a "job", he just wants to trade his own account. So 2% a month is not what he's aming for, he beat that 5 years in a row. Not saying he could beat that forever, but if he has an edge and good money management in place, I'm not sure why he can't continue to do that (provided he doesn't compound so that liquidity becomes a problem)

b) Although i agree that it is extremely difficult, I'm pretty sure it's not IMPOSSIBLE to bring in 60-100K with a 30K account when you use that kind of leverage. It may be just a matter of time until he blows his account, but if he trades 10 contracts at a time (he's starting with 5, against my advice to start smaller), it's definitely possible (but unlikely). We're not talking about compounding here and have all the money in the world, we're talking about bringing in 60K on a 30K futures account

 

[Allen3]

Quote from JimmyJam:


That's probably why I will continue to support him ... not to mention the fact that I still have yet to improve substantially on the money management algorithm that he gave away in an offhand comment (in fact, it's exactly what the OP's "friend" needs to wildly succeed in a very short time - less than a year - in this game).


Good trading,

Jimmy Jam [/B]

Hey Jimmy

Can you point in the right direction where the Money Management was discussed. Does it some how improve on what was discussed in Austinp's Backyard? Have a good trading day.

JIM