This system has one loss per 5364 trades

[kevinkdog]

Kevin speaks the truth,

A question Kevin? I recall seeing on another forum a post from a few years back. You were running a large number of different bots (60-80+) in parallel each needing 20k ish (memory may be bad) capital. Are you still going with massively parallel?

In your book/course do you have a pathway to grow from say 20k? up in some reasonable time-frame?

Thanks for question, I don't want to hijack this thread, so I moved your question here: https://www.elitetrader.com/et/threads/anyone-here-took-daveys-course.317280/

Thanks!

 

[Handle123]

If you have only one loss per 5364 trades, it is a very lousy system.
Because you are actually holding on to your multiple loosing positions and hence no actual loss but paper loss.

Or perhaps you are setting you stop level extremely extremely far away
resulting in small gain but extremely high paper loss.
So set you stop loss at appropriate level.

A good trading system should have around 50% to 60% success rate.

A lousy trading system has < 25% success rate
AND > 90% success rate.

Risk management adding options gives completely different percentages. I think after trade of reward to risk matters more than percentages.

 

[murray t turtle]

This is definitely right. For the reason you mention, and for other reasons, too.





I agree about the principle, and about the practicalities underlying the point you're making, but I'd have gone a little bit lower for the first figure, there, myself.

%%
That or it means it needs to be traded in real time , with real money.[One loss + >5000 wins system ad ]

 

[Wippi1817]

Lenny Dykstra had a system that was 100% profitable. Worked like this-
1) Enter trade
2) If trade goes up a few pennies take profit
3) If trade goes against you NEVER cover

Jock sniffer Jim Cramer gushed about him and called him “one of the great ones”.
SMH

where can I read something about this? do you have a reference?

 

[Clubber Lang]

where can I read something about this? do you have a reference?

https://www.realclearmarkets.com/ar..._another_too-good-to-be-true_story_97309.html

“
Dykstra advised almost exclusively buying deep-in-the-money call options which give a holder the right to purchase a certain number of shares of stock at a certain price (the strike price) by a certain date (set forth in the options contract). The strike price of a deep-in-the-money option is well below that of the actual price of the stock, which is why it's called in-the-money. Since these options contracts sell for considerably less than the actual price of a share of the stock, Dykstra promoted this strategy as a way for small investors (presumably his audience) to "control" significant blocks of stock and limit their risk. Dykstra advocated exercising these options quickly, on small moves upward in the stock, often booking as little as $1,000 profits on a position. His strategy was to build up lots of little wins.

Dykstra has claimed that his system had picked 99 winners to just 1 loser, but Comeau points out that because options contracts remain open until you exercise them or they expire, Dykstra was sitting with lots of potential money-losers that he wasn't counting as bad bets-sort of like not adding up the losses on stocks you've purchased unless you sell them.”

 

[Humpy]

My forex broker charges me for every overnight position.
These can quickly add up on a prolongued drawdown.

 

[Wippi1817]

https://www.realclearmarkets.com/ar..._another_too-good-to-be-true_story_97309.html

“
Dykstra advised almost exclusively buying deep-in-the-money call options which give a holder the right to purchase a certain number of shares of stock at a certain price (the strike price) by a certain date (set forth in the options contract). The strike price of a deep-in-the-money option is well below that of the actual price of the stock, which is why it's called in-the-money. Since these options contracts sell for considerably less than the actual price of a share of the stock, Dykstra promoted this strategy as a way for small investors (presumably his audience) to "control" significant blocks of stock and limit their risk. Dykstra advocated exercising these options quickly, on small moves upward in the stock, often booking as little as $1,000 profits on a position. His strategy was to build up lots of little wins.

Dykstra has claimed that his system had picked 99 winners to just 1 loser, but Comeau points out that because options contracts remain open until you exercise them or they expire, Dykstra was sitting with lots of potential money-losers that he wasn't counting as bad bets-sort of like not adding up the losses on stocks you've purchased unless you sell them.”

thx a lot for sharing this information this sounds realy great!! i tried this strategy...but there is a high rish that you get stucked when the market goes down.

But would it be possible to use some indicators to avoid getting stucked? What it is necessary here is an indicator (or a couple of them) that shows for sure an rise of the price for one or two minutes in order to avoid of getting stucked. Any ideas on this? Has somebody tried this?

 

[Wippi1817]

i think TETHER USD could be a good option