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Returns and Drawdowns in Trading
- Thread starter tyrant
- Start date
Quote from ElectricSavant:
I scale in and start small and can end up at 50:1 leverage in Retail Spot Forex. I cannot change the way I scale in and corner the hedged trade. It's sort of like an arbitration and it always comes back in.
I am still building my track record and I compete with myself.
I do not want to mislead. I scalp and go flat in between each scalp. While in the trade I have seen 8% drawdown not realized once, but most of the time it is under 1%. I have had four losing days in the last 2 months of trading.
Due to an error I took a huge loss one day...which represented like 4% drawdown...banked...
Michael B.
I get the impression that you ignore unrealised drawdowns. How else can u get 1% drawdowns with 50% return? Forgive my ignorance, but this is outrageous. Either that, or we are talking in different wavelengths. Maybe you are referring to maximum month end drawdown or something like that. Even that is unbelievable.
Quote from Dantheman:
answering percent return and drawdown information is useless for you to know. from anyone. you would listen to me if i (someone anonymous to you) say that i make X% a year with Y% drawdown? that is foolish. Listen to the words of the people who post here, don't give credibility to their words based on a 'fact' that you can not verify. DO examine approaches to the market of others for yourself. (there are surprisingly few given the size of ET). That's the best you can do.
i'm sorry you see that my advice is not useful. that's ok.
investigate the volume and price relationship. if you want.
Dantheman,
Whether it is useful stats or not is up to the person interpreting it, assuming that he is even contemplating about making serious use of the stats given. Life need not be concerned with serious stuff all the time.
About your advice regarding price and volume, please do not spend too much time trying to find something that makes you on the passive side of the move. Its for your own good, really.
Quote from tyrant:
I am interested to know what kind of annual % returns you are happy with assuming you have at least a $100k account and are free to trade whatever you want using any time frames you like, and assuming reasonable leverage such that you are not taking too huge risks? Please also state your expected drawdowns and a brief description of what you trade and time frames.
I will start : I aim for 30%-50% consistent annual returns with expected drawdown of up to 30% trading futures, forex and options with a longer term (> 1 day) view.
This concept of % return on initial investment is for people managing others money. It is a salesmen game to attract more money. If that is what you are looking for great!
If you want to make gobs and gobs of money focus on trading actively intraday, and follow the following rules.
1.Trade index futures. They are very volatile at the moment. With a 10,000 account you can trade more size than you need and if successful can make 6 figures. (This account size would only be advantageous to someone who already knows how to trade and is already confident that they will be consistent on a day to day basis).
2. Keep your transaction costs low by buying a GEM seat(20,000-30,000) or leasing an IOM for ES and NQ or GEM for ER2 or IMM for Currency futures.
3. Trade actively!! On average I make between 20-40 trades in the first 2 hours of trading.
4. Keep your losers very small.
5.Press your winners. Try to have larger size positions on your winning trades than your losers (this will take a while to understand how to master.
6. Do not add to losers!!
7.Do not try to figure out what the market will do by the end of the day. Let the talking heads who want to make a living b u l l s h i t t i n g on CNBC worry about that. Focus on looking for next opportunity to make a small profit in the next 2 seconds...... 20 seconds ........ 2 minutes...... 5 minutes...... whatever the market will provide.
8.Always attempt to focus your attention on the next trading opportunity the market will provide.
Quote from scalper21:
This concept of % return on initial investment is for people managing others money. It is a salesmen game to attract more money. If that is what you are looking for great!
If you want to make gobs and gobs of money focus on trading actively intraday, and follow the following rules.
1.Trade index futures. They are very volatile at the moment. With a 10,000 account you can trade more size than you need and if successful can make 6 figures. (This account size would only be advantageous to someone who already knows how to trade and is already confident that they will be consistent on a day to day basis).
2. Keep your transaction costs low by buying a GEM seat(20,000-30,000) or leasing an IOM for ES and NQ or GEM for ER2 or IMM for Currency futures.
3. Trade actively!! On average I make between 20-40 trades in the first 2 hours of trading.
4. Keep your losers very small.
5.Press your winners. Try to have larger size positions on your winning trades than your losers (this will take a while to understand how to master.
6. Do not add to losers!!
7.Do not try to figure out what the market will do by the end of the day. Let the talking heads who want to make a living b u l l s h i t t i n g on CNBC worry about that. Focus on looking for next opportunity to make a small profit in the next 2 seconds...... 20 seconds ........ 2 minutes...... 5 minutes...... whatever the market will provide.
8.Always attempt to focus your attention on the next trading opportunity the market will provide.
Of all your points, probably no. 2 is a good advice if active trading is what you are going after, the rest are standard stuff and I am not about to comment its relevance here...
Quote from ecritt:
The most successful CTA's in history haven't come close to those numbers despite having every advantage (experience, infrastructure, structural advantages, 24 hour trade desks, etc.). What is it you have that they don't?
LEVERAGE. Most successful CTA's in history haven't drawn down 30%!!!