Recent content by Cutten

Regarding the entry vs exit debate - I don't think that optimising either is particularly important. Most of my profits are not determined by skilful entry or exit, but by hanging on and letting my profits mount up when I find myself in a good winning position. And exits are a pet hate of mine...

Whilst that is true, how is it an objection? I am not talking about two traders with a rebatable £100k each. I'm talking about one with a rebatable profit of £100k, and one with no rebatable profit. Take £100k that can't be rebated. If you lose £18k trading size 1, then you have £82k left...

I'm suggesting you should trade size 1.667. Let's say you either make or lose 20% on a 100k account by trading at size 1. Trader A, with no accumulated profits, would do this (I am assuming a 40% flat tax rate for simplicity): Starting capital £100k Winning year Losing year...

You don't need to know - you just take all trades at 166.6% of the usual size. At the end of the year you have a profit or loss 66.6% higher than you would have otherwise. You then either get taxed at 40%, or rebated at 40%, bringing your profit or loss down to what it would be if you paid zero...

Assume you have accumulated profits going back a few years. If you make profits on a trade, they will be taxed at 40% in the UK (actually 41% now, but I'll keep things simple). So can't you just trade positions 2/3 as large as normal, and have the same returns as a tax-free trader would enjoy...