oildaytrader
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You mean method not system.Every participant has to put in gbp 100 as entry as a prize collection for winner.
Winner collects all entry fees.
GladiatorX
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I'm pretty sure a trading game already exists where everyone puts money in a pot and then the winners get the money....
Hey, hold that thought, a real market where players can actually make real money...:| Nah, it wouldn't work, let's stick to the fantasy.
oildaytrader
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The best way of judging is ratio of reward to dd, not the total profits.
oildaytrader
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It can work .Each trader trades his own account.The trader with highest reward to risk ration wins i.e profit made/drawdown
Mmm, can that also mean that the person who has made the most money doesn't win? Doesn't sound much like a capitalists dream to me.
oildaytrader
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Mmm, can that also mean that the person who has made the most money doesn't win? Doesn't sound much like a capitalists dream to me.
Two people trade ,one makes 100k risking /losing 70 k 1.42 ratio, other makes 10k risking 2 k,other chap wins 5 to 1 ratio
GladiatorX
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How can you judge how much someone is risking?
Its not as simple as 'Entry - Stop loss = Risk' because some people will be much for flexible with their trades, for instance personally i frequently breakeven and also exit before price hits my stop loss practically every trade.... My stop loss is a daily loss limit.
Others however will have their reward reached or stop loss reached, others will be more discretionary with their exits and others won't use any sort of stop loss
....
Furthermore; If you trade with leverage, you carry considerly more risk -
If you swing trade stocks, you have overnight gap risks.
So you can see a few complications in such an approach.
One complicated and bad idea would be
- Rank by biggest drawdown (All have £100,000 in theoretical account size) at any one point
- Open positions are worth £10,000 (Long & Short)
This way you are taking leverage out of the equasion and also looking at individuals whos drawdowns during trades were small (therefore they have lower risk)
But i think thats a bad idea in reality.
oildaytrader
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It is actual draw down incurred and profit made , profit made/ actual drawdown.Nothing to do with stop used.
GladiatorX
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Yeah that sounds like a good idea, thanks for explaining for me
oiltanker
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if some of the system sellers were required to demonstrate their system through such a scheme then they would be less likely to post?
or if someone is promoting their drain the banks or what have you method then evidence through such a scheme would give people a better idea of what is real and what is not?
it could be a real service for readers who could see at a glance what works and what doesn't and so separate the wheat from the chaff.
or if someone is promoting their drain the banks or what have you method then evidence through such a scheme would give people a better idea of what is real and what is not?
it could be a real service for readers who could see at a glance what works and what doesn't and so separate the wheat from the chaff.
