SharePosts by trixifx
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Yes, but the effect on the NAV will still be the same. In your example, the account will still have a big unrealised loss.
End of the day, realised gains count for little if you can still get margin-called on your existing trades. Just ask the gridders from a few years back.
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[quote]zzzero posted:
NFA's Training Programs for International Markets and Regulatory Authorities
NFA offers its training on a contract basis and we can adapt our materials to meet the needs of any organization. Here are topics that we have taught to regulatory agencies in the past.
■Function and Uses of Futures Markets
■Principles of Futures Regulation
■The Disciplinary Process
■Alfonso's donkey show
■Risk-based Auditing
■Financial Safeguards
■Ex-Pit Trades
■Managed Futures Regulatory Programs
■Margins
■Sales Practices and A......
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Hey zero,
I am not too sure about your statement.
I found their system to be very stable. I have had no issues since I started running FxSpyder.
Also, I might be able to program MT4 to do what I need, but what would be the incentive in changing? I will waste a lot of time, while everything is already developed on FxSpyder. This took less than a week with their programmers providing the skeleton and me filling in my bits of code. The programming on my part was perhaps 5 hours.
Yeah sure, MT4 is free, but the fee for FxSpyder is really minimal. If you can't afford to pay their annual fee up-......
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[quote]stephanusR posted:
You win rate is only 55% , this is to low. It must be at least 70%
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Wow, i guessed I'm f*cked then. Quite frankly, your logic is flawed. One of my best systems had win rates of only 40%, but the winners were much bigger than the losers. Currently I aim for 20% to 30% with really huge winners and small losses.
Looking at only % profitable trades is meaningless if the losses go out of control. It is possible to have a blown account with 99% accurate trades.
Just my opinion, but aiming for very high accuracy could actually derail long-term success.
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10% a month equates to roughly 214% annualised. Even 5% per month leads to annualised returns of roughly 80%.
Any of those returns would probably place you in the top 1% of all money managers.
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Attached a spreadsheet to better express what I meant.
First column is a purely independent trader with no external funds. Second column is a trader managing OPM in a 50:50 relationship with his risk cut in half. Third column is the client's account.
The second and third columns show the effect fees have on both manager and client level returns. While the return for the year is still 17.5%, the manager gets 21% and the client 14%. Unfortunately in this example, I can't quantify the effect on the drawdowns, but the manager's drawdown will decrease slightly and the client's drawdown will incre......
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[quote]pip2cash posted:
[quote]trixifx posted:
Managing OPM does have a benefit that is not yet covered here.
Hi trixifx,
The topic is about why not trade own money. Without an extra fund from client and if you still want to decrease the DD from 20% to 10% and reduce the profit from 35% to 17.5%, then by trading your own money you are still manage to get the same result. You only have to trade half of your normal lot size.
Regarding MAR, actually your MAR increase because you earn money from management other people fund, is not from your trading result. Therefore in my opinion, yo......
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Managing OPM does have a benefit that is not yet covered here.
If I as a trader manage my money and get returns of let's say 35% p.a. with associated drawdowns of 20%. My MAR on my own funds would be 1.75.
If I now get a client who matches my money in my account, i.e. doubles the capital I have to trade, I can effectively cut my risk in half by trading at half the size. I will now be reducing my returns to 17.5% and drawdowns to 10%. While this may seem to be a bad deal, at this point, the math is before any performance or management fees. Once these fees get taken into consideration (on the......
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[quote]pipinvestment1 posted:
[quote]Chikot posted:
Most of the time size changes anyway depending upon stop loss size.
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You are correct about that.. Your Lotsize is determined by your Stoploss.
Here is a video I made a year ago on determining your Lotsize.
http://www.youtube.com/watch?v=Cbslmlxr0HU
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Why not base your stop-loss on your lot-size? [twist]
There are several ways to calculate lot-size, i.e. based on stop-loss, using ATR, % of account, etc. Of course, you still need to figure out a risk management method for the approach used, you need to be comforta......
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Yes, I read your original posts on OANDA's forum and I do believe you have grown a lot since then. It should be evident in your trading account.
I don't believe you should target a certain group of investors. Trade in a way in which you are comfortable with and investors comfortable with your approach will find you. Of course, it is up to you to ensure that you comply with all the relevant regulatory requirements for managing OPM.
If you find yourself changing your style to suit your investors, you will most likely not make it in this business. If you can't find investors comfortable with yo......
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