|
PureBytes Links
Trading Reference Links
|
Robert W Cummings wrote:
> I to can show you how to make a million dollars in commodities in a
> year. Its really not that hard to do if you have a million to meet my
> margin calls along the way.
I agree. This would be essentially at best turning a million into another
million (although technically it may not be), although you would want to have
more than the million on hand in order to have at least some margin of safety.
Besides, as you say, this is a ridiculous amount of drawdown, and I suspect that
there is something seriously wrong with a system that produces this. On the
other hand, from what I gather, this drawdown could be the result of pyramiding
- i.e. once you made 2 million, the drawdown you would be subject to would
obviously be much higher than in the earlier stages of the run. As well, this
strategy may involve becoming much more aggressive as profits mount, to the
degree that one would be able to withstand a higher drawdown in real terms.
Still too high though to suggest that such a strategy would have an acceptable
risk profile.
Regards,
A.J.
|