Keeping a Strategy Secret

[Northern boy 10]

okay. i found a strategy for day-trading that can profit at minimum 15% to 20%/month with basically no draw-down other than commiss and slippage. I actually think it's even an explanation for certain large volume activity in the markets.. but i havn't given that much attention yet:hmmmm:...

 

I want to tell close friends and the like... but I'll be working prop and I'm afraid it may leak too fast or have some diluting effect... even if this is a bit naive to consider. Is there anything I can do:deal: to slow this process down or keep it on the low? I don't want the business to jack me and kick me out or something.

Edited June 18, 2008 by Northern boy
w/e

[maildigger 10]

yes ... keep it a secret and trade it

[GammaJammer 10]

Agreed. Just don't do it. If it's that good just manage dough for your mates or even just give them trade calls without the rationale.

 

But don't think that once it's out it won't go any further. Because that's very much counter to human nature. Unless you know your mates sooooooo well and there's no way in the world they'd let a good thing get away like that. But I think we know the answer to that question as unless you were at least mildly concerned you wouldn't be asking strangers on an internet forum what to do about your mates, who we don't know.

 

GJ

[Northern boy 10]

no no, I'm not worried about telling friends, I'm concerned about the the prop shop I'll be working out of.

[brownsfan019 17]

If you can make 15% - 20% per month with little drawdowns, you do not need a prop shop. And if you need the leverage, there are options and futures you can trade. Even FX if that's an option.

 

Build the account from your new mansion in the Cayman Islands.

[Guest forsearch]

Not to be mean or rude or anything, but STFU! :rofl:

 

If it's making you that kind of return, why in the world would you want to let others in on it? :crap:

 

-fs

[brownsfan019 17]

Not to be mean or rude or anything, but STFU! :rofl:

 

If it's making you that kind of return, why in the world would you want to let others in on it? :crap:

 

-fs

 

FS - you and I seem to agree on many things, just not OEC.

 

[waveslider 10]

Start trading it small, you need experience trading it. Let your profitability attract the money to trade it. Charge fees till you can give everyone back their money and trade it for yourself.

 

"I don't want the business to jack me and kick me out or something."

 

???

 

Your question sounds a little naive, sorry.

[ammo 10]

Start trading it small, you need experience trading it. Let your profitability attract the money to trade it. Charge fees till you can give everyone back their money and trade it for yourself.

 

"I don't want the business to jack me and kick me out or something."

 

???

 

Your question sounds a little naive, sorry.

why don't you trade it thru a freinds acct or have a freind trade it for u, so you can profit and go out on your own

[brownsfan019 17]

To build up funds and a track record, check out Collective2 and/or Covestor as well.

[Northern boy 10]

Not to be mean or rude or anything, but STFU! :rofl:

 

If it's making you that kind of return, why in the world would you want to let others in on it? :crap:

 

-fs

 

because i need access to good capital man. do I sound rich to you?????? anyway i guess i'll have to share it with the firm, i don't think i really have a choice. they sound more ethical then other's i've heard about so it might not be a problem.

 

or sell it on collective2.com... in 5 years lol

[Northern boy 10]

Start trading it small, you need experience trading it. Let your profitability attract the money to trade it. Charge fees till you can give everyone back their money and trade it for yourself.

 

"I don't want the business to jack me and kick me out or something."

 

???

 

Your question sounds a little naive, sorry.

 

i've read some horror stories.

[brownsfan019 17]

because i need access to good capital man. do I sound rich to you?????? anyway i guess i'll have to share it with the firm, i don't think i really have a choice. they sound more ethical then other's i've heard about so it might not be a problem.

 

or sell it on collective2.com... in 5 years lol

 

http://www.collective2.com/cgi-perl/session.mpl?session=500769127363626472469432484267458&displaypage=prices.sessionhtml

 

$98 every 6 months. Ouch, expensive.

 

:doh:

[brownsfan019 17]

i've read some horror stories.

 

Let me guess - on anonymous message boards, right?

 

[waveslider 10]

What exactly is your question northernboy?

Go trade your ultimate 15-20% a month strategy with NO drawdown at the prop firm. Why would you tell them about it? IF you are successful, they give you more money. Sorry, I am skeptical about your strategy. No one can be that confident until they trade a method day in and day out.

[Northern boy 10]

i guess i was looking for regulatory issues.. contract agreements and such that can protect a trader. anyway forget about it.

[BlowFish 10]

"with basically no draw-down other than commiss and slippage." Sounds too good to be true so it probably is (too good to be true).

 

Don't go prop. With minimal draw down and prudent position sizing you should not need that large an account. There is also QQQ's and Spyders that would allow you to build a real audited track record whilst making beer and burgher money.

 

EDIT oops assuming its an index system....still many instruments have mini contracts or closely correlated cheapy equivalents.

[lote_tree 10]

Look mate I don't know whether you've actually done the maths here but if you can earn on average between 15% - 20% a month with minimal drawdown this is what would happen:

 

If you invested pocket change of £2,000 at a minimum return of 15% a month compounded:

 

Year 1 = £10,700.50

 

Year 2 = £57,250.35

 

Year 3 = £306,303.69

 

Year 4 = £1,638,801.35

 

Year 5 = £8,767,997.10

 

If you invested a bit more, say £10,000 at a minimum return of 15% a month compounded:

 

Year 1 = £53,502.50

 

Year 2 = £286,251.76

 

Year 3 = £1,531,518.51

 

Year 4 = £8,194,007.07

 

Year 5 = £43,839,987.19

 

Or lets just say your family managed to cobble together a bit more and said, here you go son, here's £25,000, we believe in you (again at your minimum 15% a month return):

 

Year 1 = £133,756.25

 

Year 2 = £715,629.39

 

Year 3 = £3,828,796.22

 

Year 4 = £20,485,017.38

 

Year 5 = £109,599,966.40

 

So if you managed to get hold of £25,000 from somewhere coupled together with the confidence you have in your system, you would never need to work again for the rest of your life in 3 or 4 years. Why are you so impatient mate?

 

Can you now see why hardworking traders on this site have a very hard time believeing in your story? Some of them are too nice to say it but I will, stop blagging (british slang for being creative with the truth = politician).

 

However you might retort by saying but it's been done before.. I would say yes, a guy by the name of Micheal Marcus managed to turn $30,000 into $80,000,000 in 10 years. But before those 10 years Marcus took a real beating in the markets. He had to learn the art of trading for many years. If you truly have a strategy like that just tell us your real name so we can read about you in a few years time when you're managing a $25 gazzillion hedge fund.

 

Oh and can I have job when you get to that stage please? I'm an honest hardworking trader. :-)

[Northern boy 10]

 

Can you now see why hardworking traders on this site have a very hard time believeing in your story?

 

my father, he worked like an elephant pushing electrical supplies and he dropped dead at 49 with a heart attack and tax bills.

 

maybe i shouldn't of posted the figures, because it seems to be more of a concern than my actual question. feget abou' it

[BlowFish 10]

Lot's of answers not concerning your figures. Beg steal or borrow a small amount ($5k would do) and compound it into however much your heart desires. Stay away from prop. What's the problem?

[Northern boy 10]

Lot's of answers not concerning your figures. Beg steal or borrow a small amount ($5k would do) and compound it into however much your heart desires. Stay away from prop. What's the problem?

 

none. thanks, i'll consider.

[Northern boy 10]

"with basically no draw-down other than commiss and slippage." Sounds too good to be true so it probably is (too good to be true).

 

 

i've been looking for "it" for awhile now. the people in this forum are intelligent and are helping me tighten the last bolts, which is appreciated. I asked this question to find if there were any terms in contract agreements, anything of the sort, that could be created to protect a trader's method. frankly, i don't care about your nay-saying.

[Guest forsearch]

maybe i shouldn't of posted the figures, because it seems to be more of a concern than my actual question. feget abou' it

 

Yeah, run off now that you've got a dose of reality.

 

Do you really need the stress of managing other peoples money (OPM)?

 

And yes, the figures matter. Isn't that the reason we all trade? To make money?

 

Some more than others, to be sure - but we really wouldn't want anyone stealing our edge away from us.

 

Assuming you can trade this method with size - that is, it scales up nicely - you should have no problem compounding your returns as shown in another post.

 

Heck, if I were you, I'd save up or even get a line of credit for $5K and start trading that methodology right away.

 

Prove to yourself that you can make a living and sustain yourself first, then take it to the next level. Until you do so consistently with real money, though, it's all just a pipe dream.

 

-fs

[Northern boy 10]

Yeah, run off now that you've got a dose of reality.

 

Do you really need the stress of managing other peoples money (OPM)?

 

And yes, the figures matter. Isn't that the reason we all trade? To make money?

 

Some more than others, to be sure - but we really wouldn't want anyone stealing our edge away from us.

 

Assuming you can trade this method with size - that is, it scales up nicely - you should have no problem compounding your returns as shown in another post.

 

Heck, if I were you, I'd save up or even get a line of credit for $5K and start trading that methodology right away.

 

Prove to yourself that you can make a living and sustain yourself first, then take it to the next level. Until you do so consistently with real money, though, it's all just a pipe dream.

 

-fs

 

k we'll see

[BlowFish 10]

i've been looking for "it" for awhile now. the people in this forum are intelligent and are helping me tighten the last bolts, which is appreciated. I asked this question to find if there were any terms in contract agreements, anything of the sort, that could be created to protect a trader's method. frankly, i don't care about your nay-saying.

 

I am not nay saying (well I guess i am) it is just friendly advice. Just trying to make sure you aren't going to make expensive mistakes. It is pretty much impossible to avoid draw downs completely (unless you can make 100% winning trades) even with a system that produces 80% winners strings of losers will occur.

 

I wonder what you are basing your results on? Backtesting? Papertrading? In what sort of market conditions? Bull & bear, different volatility?To be perfectly honest your expectations don't seem realistic. That's not criticism its just watching out for someone who has yet to have there first market lesson. Frankly draw downs are inevitable (though of course you might expect to finish the day/week/month up). I really hope you have done adequate research and testig and even then be prepared for things to be different when doing it for real. The first few curve balls can do more damage to your trading psyche than your account.