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<DIV><FONT color=#000000 size=2>This is a first time message for me but I have
been reading realtraders e-mail for several weeks now. I have a brokerage
account with schwab and have tried investing in stocks with moderate
success. I'm am fascinated with the possibility of trading for a living
and would like the guidance of some of you "experts" out there to
point me in the right direction. I have seen talk of Robert Miner's book
Dynamic Trading and have studied MacMillin's books on options. The few
trades I have tried with the OEX have been miserable! I would be most
appreciative of anyone who would show me some basics.</FONT></DIV>
<DIV><FONT color=#000000 size=2></FONT> </DIV>
<DIV><FONT color=#000000 size=2>Reuben</FONT></DIV>
<DIV><FONT color=#000000 size=2>angler@xxxxxxxx</FONT></DIV></BODY></HTML>
</x-html>From ???@??? Mon Jan 19 16:51:32 1998
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Date: Mon, 19 Jan 1998 18:03:40 -0500
Reply-To: jvc689@xxxxxxx
Sender: owner-realtraders@xxxxxxxxxxxxxx
From: John Cappello <jvc689@xxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Subject: Re: Mechanical Trading
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X-To: "RON JONES" <ronjones@xxxxxxxxxxx>
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Dear Ron, I think it can be done with$50,000.I first traded the 7 commodity basket with $35,000 per basket.Inow trade with $60,000 per basket for added safety. Ialso know abroker who owns the system and he trades 10 baskets @ 50,000 per. Mechanically yours, John
------------------ Reply Separator --------------------
Originally From: "RON JONES" <ronjones@xxxxxxxxxxx>
Subject: Re: Mechanical Trading
Date: 01/19/98 10:23am
John..
Thanx very much for taking the time to share your hard won
experience re: mechanical systems..
In your opinion, would it be fool hardy to trade your 16.5m system
with a net equity of $50,000 in a trading account?
Ron Jones
ronjones@xxxxxxxxxxx
----------
> From: John Cappello <jvc689@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Mechanical Trading
> Date: Sunday, January 18, 1998 9:39 PM
>
>
> Dear Lynn,
I evaluate a system with a simple outlook:
1.Every system is pre sumed to work unless I prove it can not.
2.If
historical testing at 2 times margin is acceptable with 100% annual gain at
a minimum and less than 33% drawdown, I look at real time data.
3.In the case of the $16,500
system,I looked at actual statements of several millionaires.If they can do
it so can anyone.
4.In April 1997 I decided to risk $70,000 to trade 2
times abasket of 7 commodities.By June of 1997 it became $140, 000.
5.As my confidence increased I added additional capital.My
account is currently about $$600,000 or up 80% in 9 months. If and when I
do get the dreaded !
> !
> drawdown it will be out of profits unlike the one I had Aug. to Oct.
6.The other lesser priced
systems I bought have merit and I do not regret buying any of them.After
all they are agood tax deduction.
7.I initally risked 20% of my capital in
this endeavor until I hit acomfort zone.
I know there are others who have done better or worse and my only
purpose is to share what I have learned and learn from others.
Mechanically yours,
John
>
>
>
> ------------------ Reply Separator --------------------
> Originally From: MR LYNN G <MRLYNNG@xxxxxxx>
> Subject: Re: Mechanical Trading
> Date: 01/18/98 09:35pm
>
>
> In a message dated 98-01-18 08:11:28 EST, jvc689@xxxxxxx writes:
>
> << The purpose of my post is to start a thread whereby those of you who
trade
> a mechanical system will share your results as I have previously shared
mine
> and am willing todo so again. >>
> **************************
> John:
> I don't know of any mechanical systems that are profitable unless you
have a
> large trading account so I cannot help you in this area. ( If anyone has
one,
> I would certainly like to know about it.) However, I am interested in
your
> method of evaluating a mechanical system. What do you look for and how
do you
> ascertain what is valid and what is hype. I would never pay $16,500 for
a
> system based on the trash that is offered for as little as $1000 but
usually
> in the $3000-10,000 range.
>
> What prompted you to pay $16,500 and how many sytems like this did not
work
> out? Thanks and Good Trading.
> Lynn
>
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