Recently i've seen a few threads with guys using high leverage and achieving daily account gains of 30% or more, and losses... with that sort of stress and huge drawdowns how can such a strategy be scaleable? ie.if you grow your account to 100K or more, are they still going to be able to withstand that 50K drawdown or more and lose it all...? I'm developing a steady, but scaleable method, which I believe I can scale nicely even at £1m (I can but hope!) however even at its best I would see 30-50% per annum, and not per day!!! So is it pure "entertainment" this guys are after?
meanreversion
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It depends on your starting balance, don't you think? If I have £5,000, what's the point of trying to make 20% a year.. might as well "swing for the fences" and go for something spectacular.
My target is 30% a year and I don't consider myself to be taking huge amounts of risk. None the less, I've seen some fairly wild swings in equity through May and June. For this reason I am working on a shorter time frame system to complement the medium term trend model I've been trading, with the intention that the drawdown of the two will be less onerous than just the one.
My target is 30% a year and I don't consider myself to be taking huge amounts of risk. None the less, I've seen some fairly wild swings in equity through May and June. For this reason I am working on a shorter time frame system to complement the medium term trend model I've been trading, with the intention that the drawdown of the two will be less onerous than just the one.
I guess if you don't mind losing the £5000 then yes, but I would really call that "entertainment". If you want to steadily grow over say 10 years, to turn that £5000 into say £140,000, at about 30% per year, then sounds reasonable as long as the effort required doesn't outway that gain...
My strategy sounds similar to your medium term one, I was lucky enough to be flat during may/june, and am now nicely up in july.
oildaytrader
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30% a year from manual trading is low, even robots can do that.You can do better than 30% without taking excessive risk.
I know... i'm currently on 80% for 6 months, but I thought I would quote a lower conservative repeatable annual figure as an example. using say 100% makes my point even more, by turning £5000 into £5,000,000...!
Masquerade
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Show me a robot that can do that consistently every year and i'll gladly take 30%/year and do nothing.
shadowninja
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I think it's a combination of greed, desperation, excitement and fun. Plus it makes the thread interesting. Who is going to read about someone turning £20 into £100 over 1 year? 
I was about to post "I'm sure there are plenty of people doing it who don't bother posting" but then I thought that I am not sure if people are that patient.
I was about to post "I'm sure there are plenty of people doing it who don't bother posting" but then I thought that I am not sure if people are that patient.
N Rothschild
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less is more, the les risk/levarage you use the more you will gain.
oildaytrader
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I will gladly show you a robot which can do that ,tell me the price you are willing to pay for it.Goldman sachs may want to set up a $10 bn currency fund to trade it and make $3bn a year profits.They could get 20 % management fees on $3bn every year, or $600 m a year by using my robot. It is worth $6 bn (without compounding)to Goldman over 10 years
counter_violent
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I will gladly show you a robot which can do that ,tell me the price you are willing to pay for it.Goldman sachs may want to set up a $10 bn currency fund to trade it and make $3bn a year profits.They could get 20 % management fees on $3bn every year, or $600 m a year by using my robot. It is worth $6 bn (without compounding)to Goldman over 10 years
So wtf you doing here then.
If any of this was true you would be on as a consultant to Goldmans and far too busy to grace us with your time.
Masquerade
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I will gladly show you a robot which can do that ,tell me the price you are willing to pay for it.Goldman sachs may want to set up a $10 bn currency fund to trade it and make $3bn a year profits.They could get 20 % management fees on $3bn every year, or $600 m a year by using my robot. It is worth $6 bn (without compounding)to Goldman over 10 years
Ok, i'll check out the last 10 year's performance of it. If i'm happy with what I see we can negotiate a cut of profit as payment for this magic robot which will be made at the end of each year of successful trading of 30% or greater ROI.
N Rothschild
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the fact oildaydemotrader thinks that some piece of **** automated stochastics robot he makes can be scalable into the billions of dollars just shows what a complete eejit this **** is.
oildaytrader
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It is intellectual property and requires intelligence to know how to make it scalable into billions.You wouldn't know how.
N Rothschild
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you're such a clown.
oildaytrader
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This place is good for getting entertainment, contrary opinions and naysayers, so it gives me fuel to fight another day.
Masquerade
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Isn't the potential to make billions enough?
N Rothschild
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contrary opinoins? Thought you only traded automated systems... Yet another classical "shoot yourself in the foot" post from oildaydemotrader.
oildaytrader
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I run both automated on one account and have discretionary trading on a separate account.
oildaytrader
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If I could get enough noobs buying EAS at $99 , we could get there .It is not cheap to develop automated systems , mine already cost over $1m.