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IMHO, a system that incurs a 50% drawdown (or 40%, 30%, etc.) can hardly be
considered profitable, and has nothing to do with what I consider Trading.
-----Original Message-----
From: JCDuffy@xxxxxxx <JCDuffy@xxxxxxx>
To: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
Date: Monday, January 24, 2000 8:47 AM
Subject: [RT] Re: System vs. disc continued
>Contrary to belief of some, there are many systems that "work" by the
>definition Scot Billington gave, and they are available for sale in the
>public domain. Unfortunately, the drawdown associated with virtually any
>system is more then the vast majority of traders can financially and/or
>psychologically withstand. You would like at least $25K to trade 1 bond or
>$100K to trade 1 SP, and know that drawdown could be 50% or more of those
>amounts easily. Also know drawdown periods are going to run several months
at
>least. And in the back of your mind know that, yes, some systems and system
>traders that worked very well for years eventually blew up.
>
>And all of this is why the biggest system traders and advocates in the
world
>are money managers using other peoples money. There is a whole self serving
>spin industry around why system traders are better then discrtetionary
>traders. And the spin doctors are those trading the systems with OPM.
>
>
>
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