Quote from achilles28:
^Legendary gamblers ran up pithy sums into mid six figures over a couple days, doing just that - doubling up on streaks. The movie Floored interviewed one particular degenerate trader who used that approach - that was his whole edge. He caught a big move, ran it hard, and got f*ing rich. I can't find the clip. What I'm saying here....if you don't have a reliable strategy (and trust me, they exist), compounding is worth a look. Gut instinct aka discretionary trading is unbelievable hard. What's your account at now? From the initial 3K?
Yep, well the way I do it historically is bet more when I'm more confident.. course I slow down when I'm losing. This helps me because I can be in the market and breaking even and then really pick up a good read and push it and make up for all the costs of just breaking even. However, I won't be doing this in my RM account, at least at first, because I'm already over leveraged.
I think it may be useful for me to kinda backtrack and explain to myself how I got "here".
About 2.5 years ago..
I started with my C2 accounts with the goal of tracking my performance for the purpose of record keeping and getting funding from prop firms/investors
About 1.5 years ago...
I didn't have the money to hold futures overnight and found NADEX. I was placing a lot of overnight holds at that time. I had non market related money hardships too. NADEX seem like a good solution. I tried them and I found them promising but there were quite a few things that I didn't feel were ready for prime-time. I still am interested in the NADEX concepts (spreads and binaries) but I realize I was doing better in futures market.
3-6 months ago
I started to realize most firms were not paying any regard to my record. I was also able to "get" backing at a prop firm and realized it both wouldn't make sense nor be possible for me to take such a position because they don't pay any salary. It'd be an impossible situation for me. I'd need at least a year of savings to live on and then my first year expected return would be less then I make now.
At this time, I felt my C2 systems would be very important going forward because I now had 2 of the best futures systems out there. I had did 60% the previous year with only a 13% DD (55% with 33% for my rule-based system)). I had a few subscribers and felt I could meet my goals from my system.
Currently
I found that after C2 takes their 30% cut of sub fees and that most subs don't have any idea about the reality of trading I became concerned about meeting my goal. More over, I found that winning didn't ensure that subs would stay with me. I actually found subs leaving when they were making money. Yet, I found other systems in steep drawdowns that had subs. My best guess is that it is easier for a sub to quit a system when they've made money.. its kinda like trying to get to break even, I guess.
Also, I became more and more dismayed with C2 management as I found a vendor with 50 failed systems promoting a system and he had about 50 subscribers. I estimate the best systems are making around $15,000/month but most aren't making anything. The "cream of the crop" guys like me are breaking even. The real money is made from knowing the customer. in this case.. it means forex and huugge net returns. Again most of the guys doing this with solid systems are losing money to C2... There are a few systems that are making good money though.
As for C2, I will continue to offer my systematic strategy there so long as I have subs. I will also offer my discretionary system if I can get the orders. But, I will NOT give up edge just to show I'm trading my system. As I recalculated what I could make as a "top tier" performer, I began to realize I would not unlikely to hit my goals of having a 50k account by the end of the year.
But wait.. one reason I quit trading at NADEX was because I wanted to devote myself 100% to trading my system (where my sub was trading many contracts).. I didn't have time to trade 2 systems. So, C2 recently offered a program where I could trade my own systems and waive the autotrade fees. There were a few factors that led me to do this. The support at NADEX was great.. I'd definitely consider them again.. It really all boils down to a question of edge and appropriateness.
1.
First, I had switched most of my discretionary trading to real day trading and so I didn't require the margin. Previously I was more of a swinger..
2.
I was able to replenish the capital that I required due to unforeseen hardship.
So, I went live auto-trading but had several problems. I was scaling in and out of 5 lots but the auto trading software can't handle that: it was opening positions when I was closing them because I was only trading 1 lot. I made an adjustment and said I'll just go all in/all out. Next, I had been counting "crosses" as fills whereas C2 goes to market at a touch. This meant I could never be assured my fill whether it touch or cross. Even I lose ticks when cross because my order is held for 10 seconds!! This was worse then even what MIT would give me. Of course, you may say your subs will face such issues: true but they should still be profitable. I'm everything for the capture.. I hope to capture points. I may even use MITs if LMTS don't get the job done.. but I can see what is happening and make it work... to get the capture...
This is kinda where I'm at now. I realize without any subs on this system then it doesn't make sense for me to give up performance/take more time to try to work around these issues.. again as C2 management kinda let me down too. I was spending too much energy trying to fix their systems and not getting any appreciation in return.
Basically.. a big part of my switch to futures is because I feel I'm more of a true day trader now and extracting most of my profits intraday. I do have enough to hold overnight but only if I don't get hit more then 1x or 2x.
I'm switching to focus on my RM trading over my C2 discretionary system now as I feel there is a better chance I can make more from my own trading then from my c2 system. However, I still won't make enough to hit my goal..
So I will have to think of something.
