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Sorry, but it is clearly written in the Wiest's book not to
trade futures and equities and other financial instruments
that may be influenced by other circumstances than simple
supply and demand. As far as I am aware Victor Neiderhoffer's
approach was not even close to 'scale trading' and if you recall
he has lost on equities and financial instruments. Meanwhile, a
commodity is something that is not physically affected. Gold will
be gold and hogs will be hogs even in 300 years.
Though you can attempt the trades at historical lows, do not
risk to much, and take small profits on pre-set scale instead of hoping for
a big windfall. It may not be the bottom, yet. Surely
no one knows what actual low will be the time you trade. Scale trading is
not a dollar averaging strategy (though may look
similar at at the very first glance) and should not be confused
with it.
Robert
The truth is out there...
> -----Original Message-----
> From: owner-realtraders@xxxxxxxxxxxxxx
> [mailto:owner-realtraders@xxxxxxxxxxxxxx]On Behalf Of David Hunt
> Sent: February 15, 1998 8:25 PM
> To: RealTraders Discussion Group
> Subject: Re: channel breakout
>
>
> Michael,
>
> In Australia we had a well publicised CTA - Lateral Trading - that just
> blew up using "Scale trading".
> Talk to the uninformed investors who ploughed Millions into this fund
> before they lost millions and they would have said "I don't understand it
> but it sounds good so it must work". Know I guess they are too
> embarrassed. Trend Following like the Turtles may have its drawdowns but
> overnight blow ups are very unusual for Trend Followers - if things are
bad
> its a slow death!!
>
> Scale Traders can be heros for a long time and be bankrupted over night.
>
> >From Elders Reveiw: You Can't Lose Trading Commodities
> Robert F. Wiest
>
> Hard cover, 392 pages, $50
>
> Summary: If you are properly capitalized
> and trade
> reasonable size, you can sit out those
> trades that move
> against you and make money in the end"
>
> Didn't Victor Neiderhoffer also use a version of this and he blew up?
>
> NO ONE IS BIGGER THAN THE MARKET. "REASONABLE SIZE" WOULD MEAN 1% or less
> of your portfolio. Not a reasonable chunk of your portfolio.
>
> David Hunt
> http://homepages.tig.com.au/~adest
>
> ----------
> | From: Michael Ferguson <Michael.WL7BDN@xxxxxxxxxxxxxxxx>
> | To: bshumake <bshumake@xxxxxxxxxxxx>; RealTraders Discussion Group
> <realtraders@xxxxxxxxxxxxxx>
> | Subject: Re: channel breakout
> | Date: Monday, February 16, 1998 8:10 AM
> |
> | Bill and Traders,
> | This leads me to ask what you think of the scale trading system in
> Robert
> | Wiest's "You Can't Lose Trading Commodities". I don't have the book yet,
> | but I am ordering it. You can find a description of the book and trade
> | potential at http://www.elder.com/bookpages/WIEST_YO.html. Any tie-ins
or
> | experience with this?
> |
> | Michael
> |
>
|