He could add more hypothetical dollars to the hypothetical account to avoid said hypothetical wipe out. This is all hypothetical, of course.
Yes of course...this is a competition, not an actual trading account. The goal here is to have the most $$$ of all competitors after a period of time and running forward (like 30 days). My November Position Trade that grossed +104.25 pts per contract for 10 ES ($52,125...8 positions of 10 ES each for 80 ES total) in the month of November took three weeks to complete...Definitely worth the patience! Position Trading is all about patience and catching bigger moves (10 pts plus at a minimum), this is the only way to trade this method...you have to be able to hang while the price action plays out...no rushing this type of trading...PERIOD! Happy Holidays! Chris BTW, OldTrader...the ES would have to go to 1117 to wipe out this simulated account during the trade day...not going to happen!
Good point! Ditch, The first few times I saw AMT4SWA's posts they were a turn-off for me as well. I thought this guy was full of hot air. However I've since talked with another trader who says AMT4SWA posts his trades live in a chatroom and seems to somehow come out on a consistent basis while swinging 150+ contracts, partial daytrade and partial position trade in lots of 10. I know this strategy of using 25 point stops is new to me. But that's why I'm here on ET, to learn new ideas and to see what others are doing. I'm in this particular swing trade challenge to try out a position trading strategy and to learn from what others are doing. I know you're an intraday trader as well so I can understand your disbelief. So you're welecome to join or not, no credibility lost for those not participating since there are many reasons for not spending the time to do this, and I usually sit out of these competitions.
Ditch, I personally apologize for my attacks against you today...Sorry! You caught me on a bad day with your comment. I am still waiting now after several days to be able to pick up my daughter from my ex-wifes house, so that I get to have a Christmas with my daughter also. I can tell already that I will get to spend more money on lawyers in the new year...what a waste! Chris BTW, Ditch...your comment about a journal is a good idea, but I have found it better to trade with others fulltime in a realtime chatroom. There is more time to explain and discuss what is taking place and also a persons question can be answered right at the moment a particular trade pattern is developing. This just seems to work much better IMO.
Very generous offer of you, Chris, But thanks, i'm doing ok. My alias was chosen when i was sitting down on the hole, completely broke and having to learn to trade. I guess, most traders have found themselves in that situation at a point in time. If you haven't, you're damned lucky. But i'll join you in the Christmas spirit. Merry Christmas to you and all at ET. I hope everybody has a very profitable 2004!
I lost about $33,000 my first year of trading (almost 6 years ago now), and about $15,000 the second year. I just kept on trading though (there was no way in heck I was going to quit!!! I knew I could figure this out one day), and the third year I finally became profitable...I have been profitable every year since, but I will never forget those first two years...they were very tough. Chris
Sorry to hear that, i can relate to that. Guess i was a bit harsh myself too. Anyway, i hope you still get to spend some time with your girl.
Bot 500 IACI on 12/10/03 28.50 ....closed out at 33.40 on 12/23... +17.1%....is this OK...? And if so ..where is my toaster!!!!! Best to all, Happy Holidays David
Chris: I do understand the virtues, requirements, and benefits of position trading. However, I would point out that the methodology that you are undertaking is hardly reflective of position trading. Each day it appears you are making an intraday trade which maxes the hypothetical account out in terms of leverage. In fact, this particular trade would not be permitted under margin rules at most brokers around, to include IB for example. And of course you're right, that the likelihood of wiping the account out on any particular day is low. But even a small 5 point move against you would create a drawdown of 20-25%. It doesn't take many days like that to wipe the account out. And it is worth mentioning that there is no stop level given for this 'daytrading' aspect of your position other than the 25 point stop you've mentioned, which would of course be like trading without stop intraday, so that if you get backwards on some particular day the drawdown could potentially be much worse. Evidently you're trading with this type of leverage in an effort to win the contest....but it goes without saying that this form of trading would be an excellent way to blow an account up, and, in fact again, would not be permitted under the margin rules at many, if not most, brokers. So I felt it was worth at least mentioning to those who may not have considered this. I like some of the techniques you evidently use Chris. Wide stops, holding overnight positions when it's working for me, in general, allowing the market to breathe some so that it can work in your favor. However, I would also say that in terms of adding, I always have the greatest of reluctance to add to a losing position. Yes...I've done it. But not as a regular course of action. I'd rather add when I position starts to move in my favor, do things that start to prove that the path of least resistance is in my direction. Hopefully this insures that I'll have the maximum position when it's moving for me, and the minimum when it's moving against me. In fact, when a position moves against me from the outset, I immediately start to question what motivated my trade to begin with. I really dislike carry positions at a lose overnight....again, I do it, but I like to question them before I do. That small loss one day tend to lead to an even bigger loss the next day in my own experience. One other thing. Fading the underlying trend is a tough proposition. It can be done of course...you're proof of that. But when you look back at this particular trend since it's outset, it's been tough to lose 25 points (your stop point presumably) if you were long, unless you waited to do your buying at the absolute worst possible times. It's hindsight....but it's a matter of logic that with prudent buying in connection with the trend, you lose once...when the trend reverses. The rest of the time will reward you if you utilize some patience, a wide stop, and buying on reactions. Good luck with your trading Chris. It looks like you're doing a good job with it. OldTrader