An interview with highbury fx

This is a discussion on An interview with highbury fx within the Spread Betting & CFDs forums, part of the Commercial category; Originally Posted by tar Cashing out is important How many super active traders you have ? What i mean by ...

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Old Dec 7, 2016, 3:06pm   #16
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Cashing out is important

How many super active traders you have ? What i mean by active is trading 100s of times per day . And are they profitable ?
we'll do about 25% of our daily volume with about 1% of our number of daily active clients.

its hard to be super active and profitable. your cost of dealing is the spread, if you deal 100 times per day on a 1 pip spread you need to make 100 points to be flat.. try doing that every day and see how you get on.

spreadbet firms like us that quote eur/usd around a pip wide is not the right environment to trade like a machine, you need to find someone to quote you 0.2 pips or there abouts to stand a chance.

there are plenty of people though that trade hundreds of times per day. inevitably my experience shows most lose.
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Old Dec 7, 2016, 3:15pm   #17
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tar started this thread Have you came across traders/clients that trade in a unique way ? Something interesting that you came across and got your attention .


ps. Ofcourse they have to be profitable or otherwise dont mention their experience to us
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Old Dec 7, 2016, 3:22pm   #18
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Have you came across traders/clients that trade in a unique way ? Something interesting that you came across and got your attention .


ps. Ofcourse they have to be profitable or otherwise dont mention their experience to us
not really.. even a blind squirrel finds a nut every now and then.

events can conspire to make your strategy run like clockwork for a period of time but things don't last for ever. the trouble is you end up thinking you're the best trader ever and start to do things that you wouldn't normally and that's when you end up getting your bum bit. for example I came across a guy that was taking money off me every day for a couple of weeks on the ftse and we ended up working out that he bought the index every day between 8:45am and 8:50am.. for a period of time it worked but not because he had hit upon the holy grail but because for a couple of weeks coincidentally the ftse rose between 8.45am and 8.50am... suffice to say his strategy eventually ended up on the scrapheap.

back in the 90's I dealt with a senior trader from one of the uk's largest clearers who started his day by buying if the sun page 3 girls boobs were pointing up and selling if they were pointing down... now that's a strategy !!!!
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Old Dec 7, 2016, 7:45pm   #19
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Those traders that are profitable over time are they (mostly) trading

1) stocks
2) stock indices
3) commodites
4) forex
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Old Dec 7, 2016, 9:34pm   #20
 
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Hi highbury

Do you get traders not compounding there accounts and look to take regular profits out.

Also what is your typical day/week like.

Thanks for sharing.

Oscar
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Old Dec 8, 2016, 10:49am   #21
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How many traders scale-in/average down ?
typically 17% of our clients scaled in to positions during November. Only 3% scaled out.

this tells me clients are adding to losing positions to make their average better. that's not normally a good idea.
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Old Dec 8, 2016, 11:09am   #22
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typically 17% of our clients scaled in to positions during November. Only 3% scaled out.

this tells me clients are adding to losing positions to make their average better. that's not normally a good idea.
Thanks , important note here is that who didnt scale-in at November may as well scale-in later . Scaling out is rare as expected .
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Old Dec 8, 2016, 11:23am   #23
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Hi highbury

Do you get traders not compounding there accounts and look to take regular profits out.

Also what is your typical day/week like.

Thanks for sharing.

Oscar
yes but not many manage to do that. our clients accounts are typically <£10,000 so you have to be pretty decent and consistent to withdraw regular profits on an account that size.

my typical day - get up at 5am, run 12 miles to work, have 4 meetings before 10am and then trade trade trade

lots of meetings, mostly about regulation it seems. i'll meet with my heads of departments each day and we'll discuss any issues that have arisen. I try not to plan to far ahead as I want to be flexible to adapt to what the day brings. my dealers keep an eye on risk so I don't have to but we'll talk about spreads and margins regularly. we're always trying to get introducers to bring us business so our head of sales will be updating with me progress on the deals I've taken an interest in. bit of travel, not too much these days as I tend to send others if possible but i'll still be in either Cyprus, South Africa or Australia once a month or so.
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Old Dec 8, 2016, 12:47pm   #24
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tar started this thread Good . Do you have a number for the clients who are profitable for at least 3 years plus ?
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Old Dec 8, 2016, 1:29pm   #25
 
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Very good thread gentlemen
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Old Dec 8, 2016, 2:54pm   #26
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Good . Do you have a number for the clients who are profitable for at least 3 years plus ?
i have a report for 2016.

15.2% of clients who placed a trade with us are profitable.
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Old Dec 8, 2016, 3:04pm   #27
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i have a report for 2016.

15.2% of clients who placed a trade with us are profitable.
Thanks , i assume then the number for the 3 years period could be even lower .
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Old Dec 8, 2016, 3:11pm   #28
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Thanks , i assume then the number for the 3 years period could be even lower .
I think RhodyTrader did some figures on all this as part of his phd thesis. Might be worth a search.
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Old Dec 8, 2016, 3:17pm   #29
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I think RhodyTrader did some figures on all this as part of his phd thesis. Might be worth a search.
Ya i know , it was around 0.5% . The problem is he based his research on quarters profitability back to back for atleast 4 qs. You dont have to be profitable every q .
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Old Dec 8, 2016, 3:27pm   #30
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Ok well I have a question.

Do traders who automate fare any better?
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Last edited by counter_violent; Dec 10, 2016 at 3:48pm.
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