Taking 410K to 4million by Year End 2010

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Quote from asiaprop:

he was talking about the drawdown of the week.
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So what? People who talk of a 10% drawdown in a week as some blowup do not understand what neke's trading is all about.

The focus should be better placed on managing an error trade.

My experience has been that we are always better off closing out any error trade immediately we notice it, even if it seems to be some lucky error (which entices us to allow it to get luckier), and more so if it stands at a loss (sometimes just on spread costs, which we tend to think can be easily recouped if we were just willing to wait a while).

Because an error trade is, by definition, not in line with our trading and risk plans, it messes with our psyche, train of thought, mental disposition, and derails us psychologically ... which then may create a need to mentally regroup even if it ends with a lucky gain.
 
neke theres an old saying for trading, u make 90% of your money on 10% of your trades, the trick is to limit the losses on the other 90%. Your job is not to get killed while waiting for those 10% or (250 x 10% = 25) those 25 trend days a year where you clean up,... not busting your balls,... just saying you , or any of us, have to learn when to press, and when to coast,
 
actually, the point about inevitable drawdown makes sense.

when conservative hedge fund managers risking maybe 1-2% per trade expect 10-20% drawdown at times, if you make 2-3 times the risk then 2-3 times the drawdown is expected :)
 
you are obviously missing some point: when you have a 10 % dd, you need to make about 11% to be whole again, when you have a 20% dd you need to make 25%, when you have a 40% dd you need to make 67% to break even ...
 
Don’t worry my biggest drawdown was $125K I know what you are going through I have created a simple money management strategy and the percentages could be different for other people. It simply goes: when I lose X (2%) I stop trading for a week, when I lose Y (6%) I stop trading for a month, when I lose Z (12%) I stop trading until I can create a strategy that can make me a high % returns vs. the risk in my case is in the 80s-90s percentage. These are just basics if you want me to fill you in with the details let me know.
 
Quote from cvds16:

you are obviously missing some point: when you have a 10 % dd, you need to make about 11% to be whole again, when you have a 20% dd you need to make 25%, when you have a 40% dd you need to make 67% to break even ...
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All true - however, when you are focused on making it back (neke's averaging down) you loose focus on the simple act of trading according to the system. In and of itself the draw down is part of the system, you just have to keep on doing as the system says and not be overly concerned that "now I have to make 67% to get back to were I started."
 
Quote from arbs-r-us:

I can only suggest that when you're down to 20k left that you save it to keep your life intact.
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As if my life depended on 20k :)
Poor soul, do you know how many 40% compounded loss it will take for the balance to get to 20K?
 
best laid plans...
never happen.

i don't have time to look at your previous year posts, but first look says you didn't come close to 100K to 1.2M if you're at 410K now.
but 100K to 410K is respectable, if it's a real accomplishment and not paper gains.

eliminate your targets.
get realistic.
focus on the now.
take time off to reevaluate.
analyse.
adjust.
execute.
then look backwards.
you'll probably exceed your wildest expectations, which most traders would set as FAIL making such a blind prediction.

bonne chance.
rb.



Quote from neke:

After careful consideration, I have decided to kick off another year with a new target. Percentage-wise, it is not a lot different from the target for last year
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Best watch that hubris.

Quote from neke:

As if my life depended on 20k :)
Poor soul, do you know how many 40% compounded loss it will take for the balance to get to 20K?
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