Mark Douglas Interview

This is a discussion on Mark Douglas Interview within the Psychology, Risk & Money Management forums, part of the Methods category; Lee Shepherd Assumptions are not the way forward.....maybe you are not ready. QUOTE: "So....... Do you want to trade".....What is ...

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Old Mar 8, 2013, 10:21am   #25
 
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Re: Mark Douglas Interview

Lee Shepherd
Assumptions are not the way forward.....maybe you are not ready.

QUOTE: "So....... Do you want to trade".....What is more important?, reacting by emotions like everyone else and jump into the markets.....or.....the alternative?.....thats another question for you!

QUOTE: "I've fully understood the analogy's".....My original post is NOT an analogy so therefore you have not understood the meaning.....it is in fact a very serious and deep question which is unfinished.....maybe I should come back 3 years time again!
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Old Mar 8, 2013, 1:44pm   #26
 
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Joined Feb 2008
Re: Mark Douglas Interview

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Originally Posted by Triggerfish View Post
Lee Shepherd
Assumptions are not the way forward.....maybe you are not ready.

QUOTE: "So....... Do you want to trade".....What is more important?, reacting by emotions like everyone else and jump into the markets.....or.....the alternative?.....thats another question for you!

QUOTE: "I've fully understood the analogy's".....My original post is NOT an analogy so therefore you have not understood the meaning.....it is in fact a very serious and deep question which is unfinished.....maybe I should come back 3 years time again!
Hi Triggerfish,

Firstly allow me to apologise if you have taken any offence by my recent posts to you, as I said in the posts they were not intended that way.

I am by no means a professional in this business but if you ask me if I make profit on a regular basis and have done for many, many years then the answer is yes.

I feel that I may have alienated myself towards you so I will no longer offer my help, if I could have been a help at all to which personally.....I don't think I could have been.

So I wish you the best of luck.

If you are in any doubt to which I think you may be regarding my trading then please feel free to nose at my recent 30 day trading history below.

For ease of working out it goes as follows:

19 Trades
13 Winners = £10,202 / 13 trades = average of £784
6 Losers = £3,764 / 6 trades = average of £627

This includes:
12 Shorts
7 Longs

Win rate is 2.16 to 1
Monetary rate is 2.71 to 1

Biggest loss is £894
Biggest gain is £2,545

Profit/winnings over 30 days is £6,438. Currently only 2k but usually equates to 80% of winnings/profits. I live a humble but good life.

Note: I have edited a lot out of the statement as I do not wish to disclose my trades past or present to you for which can include (IMO) critical levels and entries/exits that are still in play. Many (good traders) on here know roughly what I've been trading of late, some have very good insight....However, You will not be one of them.

Good luck to you and enjoy what you can get.

Lee Shepherd
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Old Mar 8, 2013, 1:51pm   #27
Joined Jan 2013
Re: Mark Douglas Interview

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Originally Posted by Lee Shepherd View Post
Hi Triggerfish,

Firstly allow me to apologise if you have taken any offence by my recent posts to you, as I said in the posts they were not intended that way.

I am by no means a professional in this business but if you ask me if I make profit on a regular basis and have done for many, many years then the answer is yes.

I feel that I may have alienated myself towards you so I will no longer offer my help, if I could have been a help at all to which personally.....I don't think I could have been.

So I wish you the best of luck.

If you are in any doubt to which I think you may be regarding my trading then please feel free to nose at my recent 30 day trading history below.

For ease of working out it goes as follows:

19 Trades
13 Winners = £10,202 / 13 trades = average of £784
6 Losers = £3,764 / 6 trades = average of £627

This includes:
12 Shorts
7 Longs

Win rate is 2.16 to 1
Monetary rate is 2.71 to 1

Biggest loss is £894
Biggest gain is £2,545

Profit/winnings over 30 days is £6,438. Currently only 2k but usually equates to 80% of winnings/profits. I live a humble but good life.

Note: I have edited a lot out of the statement as I do not wish to disclose my trades past or present to you for which can include (IMO) critical levels and entries/exits that are still in play. Many (good traders) on here know roughly what I've been trading of late, some have very good insight....However, You will not be one of them.

Good luck to you and enjoy what you can get.

Lee Shepherd
good effort. looks like you are managing the losers well which for me is half the battle.
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Old Mar 8, 2013, 4:31pm   #28
 
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Re: Mark Douglas Interview

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Originally Posted by cablemonster View Post
good effort. looks like you are managing the losers well which for me is half the battle.
Hi Cablemonster,

The losses is where its all at. Taking profit is easy, cutting losses is not so. As long as the principles add up then one will be on the right side of trading. BTW, being on the right side does not necessarily mean they are making money but at least they know where they are not.

This is where trading systems come in handy....find one that constantly loses, flip it on its head and you've got a winnner. Its that simple. But why do most people fail.....because they don't stick to the plan and change mentality from one trade to the next. Consistency is in the eye of the beholder, not the markets

I done a trading diary on here in 2008 which detailed (very detailed) all my trades including screenshots. They were also called out live in a trading room (private but still available on here). If it's any help to you there is a section that details specifically about the losses. The diary was only meant initially for a few months but due to having a good run with minimal drawdowns I extended this for a further few months to show how I handled the losses.

After having a good run I knew it was only a matter of time before I got caught out, this is why it ran longer than initially planned for as this is where people can learn most from. We learn mostly from our downfalls.

Like I say, if it's any help to you or anyone else you'll find it by typing into google 'Lee Shepherd trading'.

Have a good weekend.

Lee
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Old Mar 8, 2013, 5:12pm   #29
Joined Apr 2006
Re: Mark Douglas Interview

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Originally Posted by Lee Shepherd View Post

This is where trading systems come in handy....find one that constantly loses, flip it on its head and you've got a winnner. Its that simple.

Lee
That statement sends up a very large red flag for me.


The majority of trading systems are break even. Transaction costs and broker shinnangins result in losses. The rate at which the losses destroy the account are usually a function of leverage used, and luck

Flipping a break even system results in a break even system. The transaction costs remain.

With the obvious exception of eroding the account due to transaction costs finding a system with a genuine negative edge is as difficult a task as finding a system with a positive edge.
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Old Mar 8, 2013, 5:48pm   #30
 
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Joined Feb 2008
Re: Mark Douglas Interview

Quote:
Originally Posted by the hare View Post
That statement sends up a very large red flag for me.


The majority of trading systems are break even. Transaction costs and broker shinnangins result in losses. The rate at which the losses destroy the account are usually a function of leverage used, and luck

Flipping a break even system results in a break even system. The transaction costs remain.

With the obvious exception of eroding the account due to transaction costs finding a system with a genuine negative edge is as difficult a task as finding a system with a positive edge.
Hi the hare,

You are absolutely right in what you say. I was getting at a negative system not a breakeven one. Both are hard to find because if you have found one then you automatically have the other.

I try and be as explanitive as I can be with my posts but to be honest I think they are already too long for most to even bother to read so I try and keep them as short as possible but of course this in itself poses problems as they are not explained to the fullest. I can't get everything down in just one or even a few posts.

There are systems out there and many that work periodically and those that have been working for many years, even as far as over a decade. The real part of any system and holy grail is oneself.

Good to have pointed it out though.

Lee
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Old Mar 8, 2013, 6:49pm   #31
Joined Sep 2010
Re: Mark Douglas Interview

Agree with Lee that generally, focusing on losses is better than placing more
emphasis on winners.

The best improvements I found are from limiting losses or even not taking a trade.
Whenever I've focused on maximizing gains, the opposite usually happens, sweet irony.

Also agree with the Hare's points about most systematic approaches being
break even, what can cause the confusion is when an edge is developed to target
specific and more importantly current market conditions.
Usually due to backtests of low sample size - either not enough data or trade duration too long.
Although backtesting itself can be highly misleading, but thats a different story.
Cut a long story short, completely agree with Eckhardt & 12 degrees of freedom...
William Eckhardt: The man who launched 1,000 systems

I agree a negative edge is just as elusive as a positive edge.
Flipping can sometimes work, often it won't, particularly if the consistent
negative edge is simply due to crossing the spread too often.
Funnily enough, what I am currently doing started in exactly that way,
a negative edge, so I wasn't expecting much from flipping it.

BTW lee, good post, I read anything that is interesting and has obviously had
some thought put into it.
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Old Mar 8, 2013, 7:42pm   #32
Joined Apr 2006
Re: Mark Douglas Interview

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Originally Posted by Liquid validity View Post
Agree with Lee that generally, focusing on losses is better than placing more emphasis on winners.

The best improvements I found are from limiting losses or even not taking a trade.
I'm inclined to agree.
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