Could you expand on this? I want to understand what you're saying.
What is your definition of an edge?
And what do you mean with ES not having an edge? I don't understand this statement.
Thanks.
Topsteptrader
- Thread starter deaddog
- Start date
Could you expand on this? I want to understand what you're saying.
What is your definition of an edge?
And what do you mean with ES not having an edge? I don't understand this statement.
Thanks.
Now here comes the interesting part. Let's assume the backer actually has way more money, but the amount needed for backing didn't really increase over the year. So what if the backer has 5 million, but they only use 1.2-1.5 mill for backing?
What are they doing with the extra capital when there is not enough traders to use the available money up??? I am sure some of you smart guys can come up with good usage for that money....
That's a good question. With that much money they would have lots of options. Accredited investors have access to many more funds, all of which have audited track records and are managed by people who know precisely what their own style of investing is. Why would giving the money to someone who is confused as to whether they are a daytrader or swing trader be the best option?
Yes I want to hear your definition of edge
According to you I have no edge and it is just random luck I have profitably traded Es for 8 years.
Must be random luck that I am currently short Es from 64 avg too.
According to you I have no edge and it is just random luck I have profitably traded Es for 8 years.
Must be random luck that I am currently short Es from 64 avg too.
OK, let me rephrase the question. Let's say you are the backer with available extra capital and you also have access to profitable traders' trades (aka trading signals), and we are talking about liquid trading instruments here, like oil, gold and indexes...
What would you do? What would ANYONE do in this situation?
Even if you have access to profitable traders trades doesn't mean you will be able to be profitable as well. There are many factors that are against you. One important one is slippage. Depending on the persons strategy and range of profit taking will really make or break your ability to shadow trade him. Another factor is commissions. If he has much lower commissions than you, his profits will have a bigger margin than yours.
I really believe that if you want to make money in the market, learn how to trade yourself. Be the master of your own domain. Once you try to depend on others, you will never really be free to make money consistently.
I really believe that if you want to make money in the market, learn how to trade yourself. Be the master of your own domain. Once you try to depend on others, you will never really be free to make money consistently.
Sure, that's why you choose carefully, and not just shadowtrading (when did piggy backing become a bad term?) automatically everybody.
It is just common sense people. You choose a swingtrader of liquid instruments, who doesn't trade very often. That is about it. Because he trades only a few times a day or week, commission isn't going to be a problem, and because he stays in the position longer (that;s why you picked a swing trader) slippage also shouldn't be a problem.
If an ES trader trades only 4-5 times a week and on average he stayes in the position for 5 points or stop loss, even if you get a 1-2 ticks slippage, you still should be fine shadowing him. But your position would be 50 cars instead of 5...
And that my friends explains why they are so nervous about Live traders taking losses.... I mean seriously, this is trading so one thing is guaranteed; There will be losses....
They only need 2-3 such traders and they can make a killing....
Of course you could also do the same with access to a pool of consistently losing traders...