I trade in 2 rooms each day and have calibrated their trades for performance in some 10 specific trade strategies; I have aver over $40K in each of the last three 6 month periods trading 3 contracts per trade.
So you made 120k in the last 1.5 years? That's really great but I'm wondering why you said it like this....
It's true, but if someone is making over 200% or more even if it's a small account it looks to me that they are on the right path to make money , now the hard part will be to make that return or more with a bigger account and the only answer is to hedge ALL your entries , this way you don't make trading decisions emotionally , for me % return tells you how good you are trading the markets....
Are you aware of scalability? Many strategies don't scale well. Hedging is rarely used by successful traders, it's better to simply look for uncorrelated trades. If you need to hedge then you're not convinced of the trade.
*chokes* Am I dreaming? So hedging is bad? d08, this is so out of left field I cannot find a plane vid to match it. Wait, I think I did...
Hedging is necessary if you're strongly correlated with the market and doing longer term trades. Then again, some might call that investing. When you have long-short positions in very different instruments, the portfolio is already hedged. Hedging also uses up precious margin, unless you're trading prop. Are you seriously suggesting all the successful short-term traders on ET always hedge?
No, I think the above is wehre we had the disconnect. "Hedging is rarely used by successful traders." I guess if you are managing a fund, yer not really a "trader", because you are maintaining very long-term positions. And that doesn't fit the definition of "trader". *shrugs* Let me tell you though, as a "trader" yeah, I'm looking for a hedge these days. I can't stand 10-20% drops in the equities anymore, because futures have expiration dates. I need protection against that damned date.