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>> He recommends that with this system, you trade a full S&P contract with a
>> $25,000 account.
At 10:58 AM -0800 12/6/01, DH wrote:
>And there you have it. Anyone using that much leverage and only making
>100 S&P points (= $25K = 100% on capital) a year is an idiot. You could
>lose your whole account (and then some) on a single overnight price
>shock. That's a horrible risk/reward ratio.
I certainly agree with Dennis. I sure wish people would stop talking about "return" without also talking about the "risk" required to achieve that return.
You can make your return anything you want by adjusting the number of contracts you trade. You should always be using some kind of risk-adjusted return (such as Sharpe Ratio) to evaluate performance.
Bob Fulks
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