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- Thread starter Pekelo
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I know that you are an accountant maybe even a CPA but your journal has similar flaws as marketserfer's. Should you trade REAL money you'd notice that long time ago.
80% of the fund in CD getting 4%
20% of the fund reserved for trading ES
Just to let you know 4% return on 80% of the capital is not the same as 4% on 100% of the capital.
good luck in your accounting career.
Edit: Fund has experienced 3% draw down in one week and you are getting same 3% in 52 weeks.
80% of the fund in CD getting 4%
20% of the fund reserved for trading ES
Just to let you know 4% return on 80% of the capital is not the same as 4% on 100% of the capital.
good luck in your accounting career.
Edit: Fund has experienced 3% draw down in one week and you are getting same 3% in 52 weeks.
OK, time to do some explaining... 
Nope. The CD gets a 5% interest, but because only 80% of the fund is in it, that's how I got the 4%. Although I am not an accountant, I can do simple math.
Keep in mind that the purpose of the journal is to show how a small fund could OUTPERFORM the market the SIMPLEST possible way. Guess what? Just in 2 trades and in 2 weeks by missing the first 5% drop of the market, I have already done that!!!
If I don't do ANYTHING from now on just roll over 3 times and stay long until the end of the year, I have already outperformed the market by 9%!!! Why?
Because the market was already down -5% when I went long and 4% comes from the built in profit.
So although I was early with going long, I thought I would lock in a sure 9% advantage over the market.
Why didn't I use a stop loss? For several reasons:
1. Last year I overtraded the journal. There is really no need for more than a couple of trades. Of course just when I decide to go lazy, volatility picks up.
2. I didn't expect this much downmoves so quick.
3. I was expecting a surprise ratecut and I didn't want to miss the surge.
4. The name of the 'fund" comes from being very similar, mimicking the market's moves, basicly being long most of the time. It only takes a couple if sidestep into cash a year, and the goal is achieved.
Last year when I got bored with the project I missed out on a big upmove, because I didn't stay long. I decided this year I will stay in longer. (of course there is a disadvantage, as we can see)
Right now the trade is down about -9%, so the fund is at -5%, which isn't that bad if we think of the market being at -14%. Let's not forget that we still have more than 11 months to go, and according to the rules I might use one averaging down, if desperate times call for desperate measures.
Of course with real money I would have used stop losses, but this makes the journal more interesting, otherwise I would be beating the market by 15%, and I would probably stop, because really, what's the point?
Any other questions? Thanks for following....
Nope. The CD gets a 5% interest, but because only 80% of the fund is in it, that's how I got the 4%. Although I am not an accountant, I can do simple math.
Keep in mind that the purpose of the journal is to show how a small fund could OUTPERFORM the market the SIMPLEST possible way. Guess what? Just in 2 trades and in 2 weeks by missing the first 5% drop of the market, I have already done that!!!
If I don't do ANYTHING from now on just roll over 3 times and stay long until the end of the year, I have already outperformed the market by 9%!!! Why?
Because the market was already down -5% when I went long and 4% comes from the built in profit.
So although I was early with going long, I thought I would lock in a sure 9% advantage over the market.
Why didn't I use a stop loss? For several reasons:
1. Last year I overtraded the journal. There is really no need for more than a couple of trades. Of course just when I decide to go lazy, volatility picks up.
2. I didn't expect this much downmoves so quick.
3. I was expecting a surprise ratecut and I didn't want to miss the surge.
4. The name of the 'fund" comes from being very similar, mimicking the market's moves, basicly being long most of the time. It only takes a couple if sidestep into cash a year, and the goal is achieved.
Last year when I got bored with the project I missed out on a big upmove, because I didn't stay long. I decided this year I will stay in longer. (of course there is a disadvantage, as we can see)
Right now the trade is down about -9%, so the fund is at -5%, which isn't that bad if we think of the market being at -14%. Let's not forget that we still have more than 11 months to go, and according to the rules I might use one averaging down, if desperate times call for desperate measures.
Of course with real money I would have used stop losses, but this makes the journal more interesting, otherwise I would be beating the market by 15%, and I would probably stop, because really, what's the point?
Any other questions? Thanks for following....
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