Quote from Maverick74:
As for the trailing stop, let's be honest for a second, that is on a 50k account, the 2nd smallest combine. That combine you only have to make $250 a day to get funded right. And you believe, no you STATED, that was a steep objective. To make $250. If you are up over $500 on a day with THAT account, which is twice more then what you STATED was difficult to do, do you really think this is an issue? Be honest. My guess is on an account that small, the avg guy is going to make $150 to $200 a day avg. That is a small account. If he is up over $500 on any one day, that day is going to be an outlier no? I mean you're a numbers guy right so you see where I'm going with this. Having a $500 day is HUGE on that particular account. So if one is up $800 let's say and they ask you to stop at $500, and again, only during the first 5k of p&l I believe, how is that unreasonable. By your own admission, you never even expect to hit that mark much less exceed it. Do you follow?
I explained this very clearly in point 2) in my post#3 on this thread. I can't believe I have to explain it again. Alright, lets do it one more time.
Logic:
Hitting 250$ on any given day is easy. But trader has to average 250$. And he will have losing days at loss limit. He will also have losing days less than loss limit. So, to compensate for these max. losses, he needs big winners and putting a trail will not let the trader get big winners. If you are trading 5 cars, 500$ translates to a 2 pt move in your favor, and then 50% trail means a 1 pt retrace. (And please don't tell me that trading 5 cars on a 50k account is over leverage and gambling. You are definitely under-risked if you are trading 1 car for 10k with such strict risk limits and such steep profit objectives.)
I hope below example sounds reasonable to you.
The trader needs to average 250$, his loss limit is 1000$.
So, out of 20 days, he makes money on 14 days, loses on 6 days.
On 2 losing days, he hits loss limit (say -950$). So, PL = -1900
On 2 losing days, his average loss is 600$. So, PL = -1200
On 2 losing days, his average loss is 300$. So, PL = -600
So, total Loss = -3700
Total PL required = 5000
So, now from 14 winning days, he needs to make 5000+3700 = 8700
which is 621 per day. To average 621 per day, he needs 1000$ to 1500$ days, because he will also have +200 and + 400 days. So, 500$ is not an outlier for him, a 1500$ is an outlier for him. To get this 1500$ outlier, 50% trail kicking at 500$ won't cut it.
I don't know what else I can do to make anyone understand it. Its so simple.
Finally, why so much stickiness with 50% trail limit kicking in at 500$ level and why do you bother - you are not Patak. Right?
I bet if Patak makes the trail kicking limit to 1000$, it will result into a increase in the success rate of its traders. Of course Patak won't make it if Patak's true aim is to let people scalp so that they can make money in comms.
Enough waste of my time on this thread. We are going round in circles.
