Quote from bwolinsky:
Then there is Madoff with a 2% drawdown close to close, and 9.23% total drawdown. Through a maxiumum potential loss of 10%, a setting I've only found in Multicharts, we get 40% annual returns risking 2% from day to day.
The difference? There's actual theoretical basis in the calculations, and coupled with working in 30 other symbols contracts, I think this is probably a winner to automate after adding the other 26 it could potentially run on, then see if I can get to the magic $25,000 into $600k in less than 6 months with about a 0.5% drawdown. I think you'll find diversification in instruments greatly reduces risk, naturally, but if you only have software designed for one specific contract, it becomes very difficult to produce reliable results.
Did I mention the account size required is around $50,000?