The Surf Report

marketsurfer · Oct 11, 2006

Quote from romik:

At what point would you bail on this position? Just curious.

i have no set price stops--- the environment is constantly being evaluated and re-evaluated after a trade is entered. however, i do use time based stops prior to profit--- i will give this trade until 10.20 to turn profitable, if not, i'll bail.

regards,

surf

Bitstream · Oct 11, 2006

Quote from marketsurfer:

thanks for the kind words, but i am not going to talk about the 'whys' of my positions.

these are all longer term and, as most know on ET, I am generally early in entries, unfortunately!!

holding all positions here

yeah, but u are not in early here, u are totally wrong. even if it turns around how u justify holdin' into such a huge drop. i mean, all was pointin' at lower prices from fundamentals to ta, u cud have bailed out, pause and reconsider, innit.

romik · Oct 11, 2006

Quote from marketsurfer:

i have no set price stops--- the environment is constantly being evaluated and re-evaluated after a trade is entered. however, i do use time based stops prior to profit--- i will give this trade until 10.20 to turn profitable, if not, i'll bail.

regards,

surf

I think I understand, thanks. Just could not relate to time stops.

marketsurfer · Oct 11, 2006

Quote from Bitstream:

yeah, but u are not in early here, u are totally wrong. even if it turns around how u justify holdin' into such a huge drop. i mean, all was pointin' at lower prices from fundamentals to ta, u cud have bailed out, pause and reconsider, innit.

yes, the entry was early. my B/E point is 1.2600--- we will see how this plays out.

marketsurfer · Oct 11, 2006

Quote from romik:

I think I understand, thanks. Just could not relate to time stops.

ok, understood. basically, if the reasons for being in a trade dont change, i stay in--if the underlying environment changes, the trade is closed. hope this makes sense.

surf

romik · Oct 11, 2006

Quote from marketsurfer:

ok, understood. basically, if the reasons for being in a trade dont change, i stay in--if the underlying environment changes, the trade is closed. hope this makes sense.

surf

Another Q here, assuming that you allocate a set amount of capital per trade and if that capital is 5% of your total funds in play, how big of a draw down would you tolerate per position if the signal is still pointing to staying in the position? Would you average by allocating further 5% of your funds or hold or does that depend on a specific situation? Thanks.

marketsurfer · Oct 11, 2006

Quote from romik:

Another Q here, assuming that you allocate a set amount of capital per trade and if that capital is 5% of your total funds in play, how big of a draw down would you tolerate per position if the signal is still pointing to staying in the position? Would you average by allocating further 5% of your funds or hold or does that depend on a specific situation? Thanks.

yes, i will and do average into a position. i am willing to tolerate large drawdowns if the underlying factors still apply. and yes, I have taken large hits, but have also had huge gains.

i believe, as traders, we must embrace risk in a meaningful manner, being prepared to lose, or its a waste of time--churning your life away.

regards,

surf

ProfLogic · Oct 11, 2006

Quote from marketsurfer:

. . . i believe, as traders, we must embrace risk in a meaningful manner, being prepared to lose, or its a waste of time.

regards,

surf

I'm saving this quote to have printed on a T-Shirt to wear at the Feb. Expo in New York. Hopefully no one will shoot me.

Don't worry Surf, I'll give you 110% credit for it.

romik · Oct 11, 2006

Quote from marketsurfer:

yes, i will and do average into a position. i am willing to tolerate large drawdowns if the underlying factors still apply. and yes, I have taken large hits, but have also had huge gains.

i believe, as traders, we must embrace risk in a meaningful manner, being prepared to lose, or its a waste of time--churning your life away.

regards,

surf

What %age of your total funds would you allocate to 1 position? I remember reading somewhere that you manage a hedge fund, so I am interested to know how the capital is normally(?) distributed within a fund. Perhaps it is a bit of wide Q, as these things vary from one firm to another. Thanks.

marketsurfer · Oct 11, 2006

Quote from romik:

What %age of your total funds would you allocate to 1 position? I remember reading somewhere that you manage a hedge fund, so I am interested to know how the capital is normally(?) distributed within a fund. Perhaps it is a bit of wide Q, as these things vary from one firm to another. Thanks.

i am no longer directly managing a hedge fund and am only trading my own capital. however, i do work with a NYC based multi-strategy fund.

i would allocate 10-15% of capital to what i consider strong ideas. there is sooo much against the trader in this business, the vig, lack of information, etc, etc, taking outsized risk is truly the only way to succeed in a meaningful manner.

yes, every manager would answer you a bit differently--this is what makes the market.

And no, I did not "blow out" my fund--- just anticipating the good professor's next query. Honestly, I learned, hands on and with house counsel, that I lacked the knowledge and personal cash resources to operate and grow ( fast enough) a fund of significant size to reach my personal goals at this time. Joining a succesful team, at this point in my growth, has proven to be invaluable.

regards,

surf