Re: Wallstreet1928 Analysis & live calls on FTSE,DAX,S&P...aimed to help New traders
I think the original claim that was made by someone was that they took 400 ticks a day on one contract on the ES, so there would be no double counting of ticks eg 4 contracts x 100 ticks a day = 400.
I think that maybe we are getting our wires crossed somewhere. I agree that consistantly taking double the daily range sounds like complete fantasy. HOWEVER, it is of course possible.
I've had odd days when I've made more than the daily range (very rare), and there are of course strategies which are specifically designed to do this (although they are usually not profitable over the long haul)
I am assuming that the pip totals being quoted are a total from multiple instruments. I trade GBPUSD exclusively, and I probably average less than 10 pips a day. This week I've been demo trading, across multiple pairs. I made over 200 pips the first day, and 90 odd pips the second day. Those numbers seam high, but of course I'm trading multiple instruments, but in order to keep risk constant, I'm trading at one tenth my normal size. Had I been actually trading this I would have made 10 times the number of pips, but no more money than I normally would.
Nasdiq has kindly confirmed that although he makes significantly more pips than I, his percentage returns are only 20% or so higher. What at first appear to be astranomical returns, are possibly realistic. I make around 100% per annum, and people tell me all the time that is impossible. But of course Im trading at 5:1 leverage, a decent hedge fund trader with 2:1 or 1:1 leverage who makes 30% a year is a far better trader than I will probably ever be, and conversely, if I upped my leverage, I'd make more money (but experience greater drawdowns)
My critisim of WS is simply that he's using the age old tried and tested method of marketing a strategy based on a high pip count. He's citing a metric that sounds good to the uninitiated, but is practically meaningless. Furthermore, his reluctance to clearly explain the basis on which he accounts for gains and losses does him no favours.
The idea behind an independant review of his trades is sound, and so far he seams to have made some good calls. Even if his results are -3 for the week thats perfectly fine (I'd give my left testicle for those sorts of returns some weeks)
I think the original claim that was made by someone was that they took 400 ticks a day on one contract on the ES, so there would be no double counting of ticks eg 4 contracts x 100 ticks a day = 400.
