Obtaining Trading Capital

Quote from syswizard:

I've heard of Tradebolt and understand it is solid and powerful....BUT, they do want a share of your executions...so they have their hand out there too ! So...if they use the FIXX api, you'll need an order-entry platform that is FIXX compliant.
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yeah, actually, since i am a programmer, why would i use this thing? lol

Again, much, much capital out there in hedgefund land....don't let the naysayers get to you. I tried for three YEARS to build a really great automated system for the E-minis, and the only one that showed promise was one that made small profits. When you added commissions, the equity curve went from straight up to straight down...eerie, sort-of, but quite understandable.
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jesus, tell me about it. i escaped that land by going to longer timeframes. it really does the trick (reducing the skid as an overall % of your trades). i actually DOUBLED the amount of slippage that i got over 2 months of data gathering, and the system barely budged. so weird!

With good HONEST backtesting results, a good dog-and-pony show, you should be able to get a good chunk of capital and run it for 3-6 months in trial mode with "collars" and circuit-breakers in effect if it starts to bleed.
I've got the names and addresses of about 5000 hedge funds for you to send-out your proposal.
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definitely something to think about once i confirm everything in the next few months. i'm sure it will be hard to sit there and think of how much potential it could have with a little more juice.
 
E-mini systems have to based off very simple conditions from what I have seen....the more complex the lower the yield curve. If you tie in a volatility condition then things can get very profitable....enter trades as volatility is high, or if low at the time of entry then the volatility must be increasing. Also, "ES" based systems work very well that are based off key DOW S/R levels being broke through from what I have found.

Funky....just keep thinking outside of the box....this may work out very well for you!

Best Wishes!
 
Quote from AMT4SWA:

E-mini systems have to based off very simple conditions from what I have seen....the more complex the lower the yield curve. If you tie in a volatility condition then things can get very profitable....enter trades as volatility is high, or if low at the time of entry then the volatility must be increasing. Also, "ES" based systems work very well that are based off key DOW S/R levels being broke through from what I have found.

Funky....just keep thinking outside of the box....this may work out very well for you!

Best Wishes!
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any "system" based off solely on one or few markets (like an ES/NQ system), just has its limits. i have never been able to get a good curve out of something like that. actually, ANY strategy on a given market will never give something like what i'm showing. you have to jump from one eq curve to another to achieve something like this. oops. did i say that? :D
 
Quote from funky:

actually, ANY strategy on a given market will never give something like what i'm showing. you have to jump from one eq curve to another to achieve something like this. oops. did i say that? :D
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Hope not, because you couldn't be more wrong. Your Avg Annual Return/Max DD ratio is about 16. Mine is about 30... trading only one market... in real life...

M
 
Quote from Mathemagician:

Hope not, because you couldn't be more wrong. Your Avg Annual Return/Max DD ratio is about 16. Mine is about 30... trading only one market... in real life...

M
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sweeet! :D
 
funky many of the the things you are saying about trading multiple markets are exactly what I've been saying to everyone I know. My systems scan the entire market (over 5000 stocks) and return trades on around 10-100 per day. The beauty is the systems can be traded successfully on a small or large account and the results are as smooth as you say.

The big difference in performance between our two approaches is that I can trade just as easily on as few as ten simultaneous trades. So the only sudgestion I can give which is different to everyone else is you can always go back to the drawing board and make your system work as well as it does, on less stocks.

Also I dont understand the attraction to leverage of larger than 4 times anyway. As somebody already pointed out if you use huge leverage then even a small DD can blow you away. With systems like ours which produce a lot of trades, too much leverage can be counter productive. So I think you really have to find a way of trading it without big leverage.
 
Quote from toe:

funky many of the the things you are saying about trading multiple markets are exactly what I've been saying to everyone I know. My systems scan the entire market (over 5000 stocks) and return trades on around 10-100 per day. The beauty is the systems can be traded successfully on a small or large account and the results are as smooth as you say.
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interesting...good to hear!

The big difference in performance between our two approaches is that I can trade just as easily on as few as ten simultaneous trades. So the only sudgestion I can give which is different to everyone else is you can always go back to the drawing board and make your system work as well as it does, on less stocks.
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while i could probably get a similar return on fewer stocks, i definitely wouldn't get the drawdown that i'm seeing here. i'm talking less than 2% drawdown for a 60%+ return....to me i've never seen that before :) but obviously i'm the rookie here....so i haven't seen alot of things!! its just that after years of trial and error and coming up with thousands of systems, you don't expect it (at least for me).

Also I dont understand the attraction to leverage of larger than 4 times anyway. As somebody already pointed out if you use huge leverage then even a small DD can blow you away. With systems like ours which produce a lot of trades, too much leverage can be counter productive. So I think you really have to find a way of trading it without big leverage.
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yeah, like i said, i think really my goal should be to find a broker without a minimum commission, at .01/share or less -- instead of finding more leverage. at least for now.

so, for now, this thread has really helped clarify my goals....

:D
 
Funky,

I think you need to check out your outputs, especially your equity curve. Specifically why does the 6 month test have 1321 data points in that last image? You need to be compiling these things on a daily timeframe basis. This can alter your drawdown figure. That is the real fault of Tradestation type systems. They don't handle the nuances of multi market systems very well.
 
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