Why do they do it?

This is a discussion on Why do they do it? within the General Trading Chat forums, part of the Reception category; Originally Posted by SanMiguel Interestingly enough, I wonder what the variance in trading is like compared to poker. It's not ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Feb 5, 2011, 3:15pm   #281
 
BlackBison's Avatar
Joined Jul 2007
Re: Why do they do it?

Quote:
Originally Posted by SanMiguel View Post
Interestingly enough, I wonder what the variance in trading is like compared to poker. It's not unheard of for pro poker cash players to drop 60%+ of their bankroll before increasing it again and that's when they are playing good poker not making any mistakes

I did 30% in Jan too, maybe I can do 1000% by the end of the year
The variance in poker at the highest levels is much, much higher than in trading. At the low end where the games are easier and can be beaten with a more mechanical style the variance is lower. My largest drawdown when I played professionally was about 30%.

Playing online you can do alot of volume, however, which can smooth the equity curve somewhat. Nevertheless, my equity curve over 3 years and about 5 million hands included a patch lasting over 3 months where I essentially broke even.

This was even though I was crushing the games in terms of expectancies and playing 4-8 tables at once, for 80+ hours per week. With equity swings of £10k+ a day as you can imagine it was pretty tough to stick with the 'system'

No professional poker player should drop 60% of their bankroll if they are using correct 'position sizing'. The only reason I take greater risk in trading is because the variance is lower and the edge is higher, so its worth the stretch imo..
BlackBison is offline Coach/Trainer   Reply With Quote
Old Feb 5, 2011, 3:18pm   #282
Joined Mar 2009
Re: Why do they do it?

Quote:
Originally Posted by BlackBison View Post
The variance in poker at the highest levels is much, much higher than in trading. At the low end where the games are easier and can be beaten with a more mechanical style the variance is lower. My largest drawdown when I played professionally was about 30%.

Playing online you can do alot of volume, however, which can smooth the equity curve somewhat. Nevertheless, my equity curve over 3 years and about 5 million hands included a patch lasting over 3 months where I essentially broke even.

This was even though I was crushing the games in terms of expectancies and playing 4-8 tables at once, for 80+ hours per week. With equity swings of £10k+ a day as you can imagine it was pretty tough to stick with the 'system'

No professional poker player should drop 60% of their bankroll if they are using correct 'position sizing'. The only reason I take greater risk in trading is because the variance is lower and the edge is higher, so its worth the stretch imo..
10k a aday? What blind level was that?!
SanMiguel is offline   Reply With Quote
Old Feb 5, 2011, 3:22pm   #283
 
BlackBison's Avatar
Joined Jul 2007
Re: Why do they do it?

Quote:
Originally Posted by SanMiguel View Post
10k a aday? What blind level was that?!
$10/20 and $25/50 NL mostly

largest losing day i ever had was about -$27k
BlackBison is offline Coach/Trainer   Reply With Quote
Old Feb 5, 2011, 3:36pm   #284
 
montmorencyt2w's Avatar
Joined May 2008
Re: Why do they do it?

Quote:
Originally Posted by BlackBison View Post
T
No professional poker player should drop 60% of their bankroll if they are using correct 'position sizing'. The only reason I take greater risk in trading is because the variance is lower and the edge is higher, so its worth the stretch imo..
Let's hope you can keep it up consistently in the long-term.
montmorencyt2w is offline   Reply With Quote
Old Feb 5, 2011, 4:48pm   #285
Joined Apr 2006
Re: Why do they do it?

Quote:
Originally Posted by DionysusToast View Post
What is surprising is that you need a 'model account' in the first place. Really, what kind of nonsense is that?
They'll be justifying trading a demo account next. Words almost fail me.
the hare is offline   Reply With Quote
Old Feb 5, 2011, 5:17pm   #286
 
trader_dante's Avatar
Joined Aug 2005
Re: Why do they do it?

Quote:
Originally Posted by the hare View Post
They'll be justifying trading a demo account next. Words almost fail me.
"They'll?"
__________________
Lessons from successful traders: http://www.trade2win.com/boards/firs...l-traders.html

Increasing trader performance: http://www.trade2win.com/boards/firs...rformance.html

Advice for getting a job in trading: http://www.trade2win.com/boards/gene...b-trading.html
trader_dante is offline Coach/Trainer   Reply With Quote
Old Feb 5, 2011, 7:02pm   #287
Joined Apr 2006
Re: Why do they do it?

Quote:
Originally Posted by trader_dante View Post
"They'll?"
yeah, these vendors who trade tiny accounts
the hare is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)