newbies obvious question

[slimcat]

Hi Guys,

I have been interested in formulating a strategy spread betting the dow for the last few years
but really have not played it out properly as I have to work full time(simple long term moving averages). Anyway I was thinking about the stats that 95% of traders lose and 5% win and I thought that if this was the case then it would be easy to trade side by side with a consistently poor trader and trade exactly the opposite way to him ie mirroring his bad trades.
You then split the profit 50 / 50 .
I would like to know what you think about this, please respond.

Thanks Slimcat

 

[geraldpeters]

Sounds good to me!

Hi Guys,

I have been interested in formulating a strategy spread betting the dow for the last few years
but really have not played it out properly as I have to work full time(simple long term moving averages). Anyway I was thinking about the stats that 95% of traders lose and 5% win and I thought that if this was the case then it would be easy to trade side by side with a consistently poor trader and trade exactly the opposite way to him ie mirroring his bad trades.
You then split the profit 50 / 50 .
I would like to know what you think about this, please respond.

Thanks Slimcat

I would be happy to volunteer but it should be a 60/40 split in my favour to compensate for acknowledging the extent of my failure as a trader!! :cheesy:

 

[DaveJB]

Unfortunately I think I see a flaw in the plan....
Did the 'bad' trader lose because they went long instead of short, or did they go long okay but too soon or too late? Did they exit too soon, too late? Get into a choppy period and time it nicely and you can reverse your trades almost tick by tick, with skill you can lose a packet in no time.
I'm not good enough by any means to advise you beyond this, but there's more to profit than deciding up or down.