Where would I find the "Ebook" the folks have been referring to ?
Herman <[EMAIL PROTECTED]> wrote: Every few years this type of
discussion surfaces and it is great fun to read
It always surprises me how two types of traders can be so oblivious to each
others' way of thinking. Consider two types of traders (ignoring the many types
in between):
1) Those who scan 100+ stocks in Real-Time and trade small lots of 100 shares
(or whatever the market allows) 5-100 times a day, easily making up to a few
percent on good days, using an automated trading system.
2) Those who trade portfolios with 1000-10000 shares/trade and must roll over
millions of dollars trading for others, making, if they are lucky a few
percent/month.
We have both of these traders on this list but really they should have their
own lists, perhaps AmiBroker-Fat and AmiBroker-Skinny their expectations are
not and cannot be the same.
In the first category volumes, market trends, market analysis, traditional
TA, etc. play a minor role in system design. Their systems can be extremely
simple and their trading rules may be expressed using only half a dozen lines
of code while their automation code may easily exceed 1000 lines. Their trading
screen may only display a lists of tickers with order status: no charts. They
work hard to design and optimize code for maximum execution speed so that to
can get their orders placed before the next quote comes in - speed translates
in profits and 20-40 mSec execution is typical.
Almost everything for the second category is reversed: they thrive on
traditional TA using many colorful chart-layouts, perhaps totalling 1000s of
lines of code. Their automation code, if they use it, may just be a a hundred
lines long and aims to save them some typing - not to catch a trade. They use
old (10-20 years!) techniques and statistical analysis that are rehashed over
and over, they thrive on sophisticated analysis to squeeze out a fraction of a
percent more per month (or reduce awful DDs). Code can be bloated with cosmetic
stuff and its OK if it takes 5 minutes to execute.
Traders from both categories ought to respect each others.
best regards,
herman
Sunday, May 27, 2007, 5:27:22 AM, you wrote:
>
Hi Dennis --
Averages 2.5% per day!?
That same $1,000 starting account becomes $294,000,000 in two years.
(1.025) ^ 510 = 294,558
Please pass my email address on to your friend who gets 2.5% per day.
howardbandy at gmail.com I have contacts who will reward him handsomely.
When Larry Williams ran $10,000 to $1,000,000 in one year and became famous
for it, that required a return of 1.84% per day. 2.5% per day turns $10,000 to
$5,039,800 in one year.
Help me understand -- Assume I can average 1% per day on, say, $100,000.
Every month, I start with $100,000 and make $24,471 on that $100,000. Why
would I pull my $24,471 profits out so that they can make 1% for the next month
instead of continuing to trade them and making 24% for the next month?
And, yes, trading in size affects the market. But if your friend is trading
several times per day in markets with high liquidity and narrow bid-asked
spreads, then $1,000,000 is still small size. QQQQ and IWM each regularly
trade $5 billion dollars a day -- $1,000,000 is 5 seconds worth of trading.
Pardon my skepticism --
Thanks,
Howard
www.quantitativetradingsystems.com
On 5/26/07, Dennis Brown <[EMAIL PROTECTED]> wrote:
I know of more than one 1% per day method, but of course it will
not work to compound. That is not the way a true trader does it. I know a
trader who averages 2.5% per day on about 5 trades per day on one ETF, and
holds no position overnight. He pulls his profits out and lives on them or
puts them to work in longer term investments. High rates of return only work
for small investments and usually require a lot of personal attention and
pattern recognition during the day. If it worked for large sums, or easy
computer algorithms, the big boys (or hoards) would work that angle to death
and the edge would get neutralized. Once you try to increase position sizes
above a certain amount, you start to influence the market and you have no one
to play against --it takes two to have a market. That is why large mutual
funds must look to a fundamental value model. They can not trade the
technicals quick enough without killing the market. A true trader will just
work the market technicals to pull out a small amount of money at a consistent
rate (no home runs). Over time, the results add up to a decent living.
Dennis
On May 26, 2007, at 4:02 PM, Howard B wrote:
One percent a day. Yeah, right.
Compound one percent a day for five years and a $1,000 trading account
becomes $278,000,000. Start with real money and own Manhattan.
(1.01) ^ 1260 = 278,567
Howard
On 5/26/07, dralexchambers <[EMAIL PROTECTED]> wrote:
T-ohrt - the thing you are missing is not your technical ability, but
your BELIEF and your ATTITUDE to new things.
You seem to mistrust my recommendation when in fact you nothing of
me, my level of trading knowledge, this system or my involvement with
it (my involvement is none other than my affiliate link - just to
make that entirely clear).
If you believe that 1% a month is all that is possible, that will be
your reality, and you will discount ideas that make more as trickery.
If you want trade lists, further explanations on the system I
recommended - discuss it with David, the author. It is not my job to
divulge a system that someone else owns.
However, I will say that David's system is very credible and also
very simple. I have recieved a lot of support from David and his
system opened my eyes to swing trading.
I also know of an individual who makes 1% A DAY - and publishes all
his methods and indicators for free, online.
Look for The Rumpled One at:
www.kreslik.com.
I am currently porting his work over to Amibroker on that site.
And yes, once again - it is all FREE, and you definately won't find
it in your "Beyond Technical Analysis" book.
AC
---------------------------------
Expecting? Get great news right away with email Auto-Check.
Try the Yahoo! Mail Beta.
