Taking 410K to 4million by Year End 2010
- Thread starter neke
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what are you talking about? This was not about trading convictions, Neke did the only thing he should do and what he said he would do which is to focus right now on his automated trading. The results show fruit.
Also, trading is NOT about whether having doubt or not. Conviction is important when putting on a trade but much more important is proper risk management something I believe Neke lacks the most among all the other skills needed to successfully trade. He is working on this and I again applaud him for that. Trading is not about becoming a big swinging dick. You can see where big swinging dicks got us in the world economy. If you dont worry about "how you land" on each and every trade, no matter how small, you will never ever cut it as trader.
Also, trading is NOT about whether having doubt or not. Conviction is important when putting on a trade but much more important is proper risk management something I believe Neke lacks the most among all the other skills needed to successfully trade. He is working on this and I again applaud him for that. Trading is not about becoming a big swinging dick. You can see where big swinging dicks got us in the world economy. If you dont worry about "how you land" on each and every trade, no matter how small, you will never ever cut it as trader.
Good job this week neke.
Weekly Update for week 10/50 ended 03/20/2010
Positive week, up 5.3K (2%).
Good again there were no forced stops (on maximum loss), as I seek to go according to the rules on position sizes on the few discretionary trades made. The lack of volatility has meant some of my automated strategies are just idling away waiting for opportunities. One is tempted to reduce the parameters in order to fetch trades. However, that is not advisable from my experience.
Will keep plodding away at the small size for quite some time.
Positive week, up 5.3K (2%).
Good again there were no forced stops (on maximum loss), as I seek to go according to the rules on position sizes on the few discretionary trades made. The lack of volatility has meant some of my automated strategies are just idling away waiting for opportunities. One is tempted to reduce the parameters in order to fetch trades. However, that is not advisable from my experience.
Will keep plodding away at the small size for quite some time.
Code:
Opening Balance: 242,517
Net gain for the week 5,287
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Net Balance: 247,804
Number of Trades 21
Number of Profitable Trades 14
Since Inception of Thread 01/10/2010 - 03/20/2010
Opening Balance: 410,000
Net loss(Less Margin Interest) 162,196 (Down 40%)
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Net Balance 247,804
Number of Trades 389
Number of Profitable Trades 184I hadn't checked this thread in over 2 months. Sorry to say Neke, but you are not going to make it in this game if you don't learn to put in what I call "disaster prevention" rules to stop you from blowing up.
You should have time framed drawdown rules in your business plan.
Here are my rules:
1) A 5% drawdown in any 20 day stretch requires position resizing of half of original intent.
2) A 8% drawdown in any 20 day stretch requires 2 months of time away from the markets.
3) A 15% drawdown in any 60 day stretch requires a 4 months of time away from the markets.
4) A loss of 30% or more in the funds entirety requires a shutdown of operations and to never return to trading.
5) As long as there is a portfolio loss, you are not allowed to take on any position with original sized intent. In addition, you may not trade more than 50% of capital in sum until you have brought your portfolio to a gain.
This is the second time I've seen you drawdown like this Neke. You need to penalize yourself. You need consequences. It is the only way to prevent you from taking on big drawdowns like this.
You are taking on too many trades in a market that is light in volatility. In other words, your system is chopping you up and up good.
In addition, when you press yourself with too lofty of a goal, you take on more than you can chew. Realize, that if you can do 50% year over year you are doing well. Perhaps set goals you can achieve rather than trying to impress.
You should have time framed drawdown rules in your business plan.
Here are my rules:
1) A 5% drawdown in any 20 day stretch requires position resizing of half of original intent.
2) A 8% drawdown in any 20 day stretch requires 2 months of time away from the markets.
3) A 15% drawdown in any 60 day stretch requires a 4 months of time away from the markets.
4) A loss of 30% or more in the funds entirety requires a shutdown of operations and to never return to trading.
5) As long as there is a portfolio loss, you are not allowed to take on any position with original sized intent. In addition, you may not trade more than 50% of capital in sum until you have brought your portfolio to a gain.
This is the second time I've seen you drawdown like this Neke. You need to penalize yourself. You need consequences. It is the only way to prevent you from taking on big drawdowns like this.
You are taking on too many trades in a market that is light in volatility. In other words, your system is chopping you up and up good.
In addition, when you press yourself with too lofty of a goal, you take on more than you can chew. Realize, that if you can do 50% year over year you are doing well. Perhaps set goals you can achieve rather than trying to impress.
i think he should take his 250K and split it up into three foreclosures in really nice neighbourhoods: new york, san francisco, and london. rent the places out, and in 3 years, collect your $4M tax free.
or, wait until two weeks before GOOG reports earnings, go allin for 2000 shares and write the may 590 puts for another 60K+ in potential profits and then buy the houses.
He (and many on here) need to lose it all to really understand that the pursuit of money wasn't and isn't their life calling.
ha, how true. Though I think Neke is somewhat different from the masses. If he keeps on being disciplined he could make it all back this year. Hope he learned the lesson. Must be painful to piss away such stack in a matter of a few weeks only to have to make it back in a year or more.
i disagree. daytrading is like texas hold 'em. i say go all in on a sure hand, and make it back and then some. only great traders have the balls to make the really big bets. that's why they're paid like baseball players. and then some...
http://www.finalternatives.com/node/11825
i'd never pay $100M for a painting, but then if i had $100M, why the hell not. it's not like SAC needs to count his pennies anymore. he's too busy swimming in his gold coin vault.
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