Using broker statements to get a trading job?

" I have had trades which called for me to go long at, e.g. 1250 ES with a stop at 1200 and the market went down to 1200.25 and then reversed and made the trade profitable. The scalability is practically infinite, whereas my capital is not."

50 points DD...

I think you'll exceed the reportable amount with your "strategy"!It is not even a strategy per se.
 
Quote from ocean5:

" I have had trades which called for me to go long at, e.g. 1250 ES with a stop at 1200 and the market went down to 1200.25 and then reversed and made the trade profitable. The scalability is practically infinite, whereas my capital is not."

50 points DD...

I think you'll exceed the reportable amount with your "strategy"!It is not even a strategy per se.
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Coming from a Jack Hershey supporter, don't pay any attention to this.

4% drawdown is reasonable up until 5-10% depending on leverage factor.
 
Just one question....are the majority of your trades Long?

ES

Quote from logic_man:

Has anyone tried this and succeeded? I've developed an algorithm for the ES and have had 8 months of profitability with a gain of 196% and a max drawdown of 26%. I've been optimizing it and it could have been even better. Clearly, if I can continue at that rate, I won't necessarily need a job, but I'm wondering if I could land one using that as my "resume". It'd be nice to trade OPM, so I could put even more emotional distance between myself and the outcomes. Also, having the technical resources of an established firm behind me would enable branching out into other markets, which I am dipping my toe into now. The algorithm "should" work in any market which fluctuates, which is pretty much all of them, although, of course, that needs to be verified.
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Quote from bwolinsky:

1.96/0.26=7.53 calmar ratio.





Because you are talking about less than 30 trades in a year, it is doubtful you'll ever raise any money with this until you have at least 100+ trades, and even then, if you're idea is to trade one market, forget it. Most institutions are looking for scalable strategies that pyramid into positions, and this one does not. Just because you're trading ES doesn't mean thousands could be traded with it 30 times per year. That's not likely to get any institutional interest because there's not enough expectancy confidence due to the infrequent trading.

Institutions that would invest are expecting a multi-million dollar portfolio traded for a minimum of 2 years, so 1 year doesn't cut it, and unless it gets to multimil after 1, it won't make that cut either.

You're better off trading your own capital with this.
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I think you may have misread the trading frequency. The trading frequency is actually closer to 150 trades per year. And, yes, the strategy has evolved somewhat so that the actual data I have is for just under a year, but the strategy could easily be backtested going back as far as there was 1-minute data for any market you'd like to test. Since it is an algorithm and not discretionary, there would be no barriers to backtesting it via computer code.

As for scaling into positions, you could definitely do that. As I mentioned, a trade trigger also triggers an initial stop and one could buy or sell at any price between the trade trigger and that initial stop. If your trade trigger is long and your trade experiences "heat", that just means you can buy more.
 
Quote from bwolinsky:

Coming from a Jack Hershey supporter, don't pay any attention to this.

4% drawdown is reasonable up until 5-10% depending on leverage factor.
More...

Coming from the bullshit artist Jablonski who thinks 50points DD is reasonable!What an ahamkara!
 
Quote from ElectricSavant:

Just one question....are the majority of your trades Long?

ES
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It's the infrequent trading, isn't it, ES?

Up in an up market, less than 30 trades in the past few months, suspicious? Spurious? I think both. Data to 2009, though, but without live results better off for subscriptions than trying to get in front of insititutions expecting scalability.
 
Quote from ocean5:

Coming from the bullshit artist Jablonski who thinks 50points DD is reasonable!What an ahamkara!
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When you've done enough trading to see 5-10% drawdowns are likely, come back to us with your swing trades that aren't dependent on a Jack Hershey mythical backtest. The mysticism goes only so far, and I've watched swing systems tolerate that level of drawdown before turning a profit. It's not pleasant and until there's more history most investor's do get turned off by that level of drawdown but many more miss the multithousand percent profits that come to those traders afterward.
 
Quote from ocean5:

" I have had trades which called for me to go long at, e.g. 1250 ES with a stop at 1200 and the market went down to 1200.25 and then reversed and made the trade profitable. The scalability is practically infinite, whereas my capital is not."

50 points DD...

I think you'll exceed the reportable amount with your "strategy"!It is not even a strategy per se.
More...

I'm not sure what you mean, although I sense that you are trying to say something negative.

Look, if the market says "Your initial stop needs to be 50 points away from your entry price", who am I to argue? If the market says "Your stop needs to be 5 points away from your entry price", that's fine too. The market is the final, and only, arbiter of what is and isn't necessary.

Funnily enough, I looked at the statistics of whether or not trades which required initial stops which were "far away" or trades which required initial stops which were "close by" were more profitable. Turns out that the trades with the initial stops that were further away were actually more profitable. Just another example of the market being its perverse self.

The thing is, judging the market by what seems subjectively "rational" is a HUGE mistake.
 
Just a friendly advise to the OP.Don't tell anyone you want to rise money for BACKTESTED strategy-you WON'T see a dime!!!
 
Quote from logic_man:

I think you may have misread the trading frequency. The trading frequency is actually closer to 150 trades per year. And, yes, the strategy has evolved somewhat so that the actual data I have is for just under a year, but the strategy could easily be backtested going back as far as there was 1-minute data for any market you'd like to test. Since it is an algorithm and not discretionary, there would be no barriers to backtesting it via computer code.

As for scaling into positions, you could definitely do that. As I mentioned, a trade trigger also triggers an initial stop and one could buy or sell at any price between the trade trigger and that initial stop. If your trade trigger is long and your trade experiences "heat", that just means you can buy more.
More...

Hmm. Well frequency is fine then, but that's not the kind of scalability most institutions would look for. It's still based on initial entry, and should be based on scaled position size.
 
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