Risk $1000 to make Millions

Quote from asap:

an anti martingale strategy along the lines of what the op describes would yield a profit factor of north 2.0 with a sterling ratio in the range of 3.0 if used during the last decade (which was very tough on always long strategies).

the op has hit the nail on the head imo. the essence of intelligent trading (let your winner run, cut your loses soon) coupled with the edge of he index positive drift makes an exceptional trading expectancy. however, one should accept several losing years in a row are a possible and likely scenario. however, after any of those multi year dd's, the system rapidly build into a single winner to achieve a new peak in equity.

see in attach the equity curve for oneof my dax ats based on these assumptions, trading one lot (adding up to 10), just doing longs and covering the bear market of 2000. the system made 300k while the underlying is below the initial level.
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LOVELY, just lovely. What in god's green acres does your "attach" mean?

I hate to bring this up, but i don't suppose the thought has occurred to you to annotate your lovely, just absolutely fricken tootly, lovey graph.
 
Quote from maxpi:

It tested out as a good strategy with the caveat that every so often you would blow out your account and have to start over.
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This is like saying "you're in perfect health, except for that terminal cancer."
 
I didn't read the entire post to see if any body mentioned this yet, but your idea is basically parallel to the point and figure (X&O) charting method. I've been using Dorsey Wright for their charts from sometime now, and have not made any trade decisions using point and figure, but I could see where if someone were to find the right combination of enterance and exit points, the two may be valuable.
 
theoretically it is true. but one step missed, you kissed your life and dead.

take an example about RDN or ABK, if someone shorted two DOGS from 5, then use the gain to short more at 4, then at 3 using the additional gain, then do it at 2, then at 1.5, ... use his full overnight margin, that do yield a fortune in just one month!

but I doubt no one will play this gaime like that, if some positive news leaked, the market next day may at $10, you end up owing the market 1.0 million!

additionally, so nicely trending market is very rare, that is lottery play!
 
Quote from oTzt:

Hi Voodoo,

Interresting post.
I think i've got the point with the anti-martingal principle, but I don't see what the fibonacci sequence brings to you.
Why did you choose Fibo instead of, for example, openning with one contract, then adding adding 2 then 3 then 4, ... up to a given limit ?

What is the specific bonus of the Fibonacci sequence ?

Olivier.
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My idea was to try to initiate a discussion as to methods for adding to a winning position. Fibo was used to get to a large position quickly. Nothing special about it. I just wanted read how others add to their winners and maybe compare notes. That's all.
 
Quote from asap:

an anti martingale strategy along the lines of what the op describes would yield a profit factor of north 2.0 with a sterling ratio in the range of 3.0 if used during the last decade (which was very tough on always long strategies).

the op has hit the nail on the head imo. the essence of intelligent trading (let your winner run, cut your loses soon) coupled with the edge of he index positive drift makes an exceptional trading expectancy. however, one should accept several losing years in a row are a possible and likely scenario. however, after any of those multi year dd's, the system rapidly build into a single winner to achieve a new peak in equity.

see in attach the equity curve for oneof my dax ats based on these assumptions, trading one lot (adding up to 10), just doing longs and covering the bear market of 2000. the system made 300k while the underlying is below the initial level.
More...

Thanks for the post. You would not have to always be long. You could use a reversal system to switch between a long and short position, but never flat. Or you could trade multiple markets and be flat most of them and just initiate positions in markets that breaking out of their range (a la the turtle traders). Granted all elements of a trading system (markets to trade, position sizing, entries, stops, exits, etc) are intertwined but in this thread my idea was to focus on initial position sizing and changing your position size as price changes.
 
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