tag:blogger.com,1999:blog-847353783015972405.post4611445133391471454..comments2023-12-05T23:36:32.393+00:00Comments on ElectronicLocal: Expected EarningsElectronic Localhttp://www.blogger.com/profile/10539999419310383613noreply@blogger.comBlogger14125tag:blogger.com,1999:blog-847353783015972405.post-16426527687168946422012-11-23T14:15:03.454+00:002012-11-23T14:15:03.454+00:00What privelleges or information, specifically, can...What privelleges or information, specifically, can I still benefit from as an electronic access trader in exactly the same way as you benefited on the floor of an exchange?khairul044http://www.empowernetwork.com/Dwaynepyle/learn-how-to-maximize-your-foreign-exchange-trading-with-this-advice/noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-69068315067943133072012-11-01T05:40:46.769+00:002012-11-01T05:40:46.769+00:00see the next postsee the next postElectronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-41054228795333128272012-10-31T16:24:32.413+00:002012-10-31T16:24:32.413+00:00El, per your stat, how many contracts, say on euro...El, per your stat, how many contracts, say on euro futures do you trade per $30,000?<br /><br />As an example, 1 contract per $10,000, i e 3 contracts per $30,000?<br /><br />Can you expand a bit on what you beleive is a "proper" account per so many contracts? <br /> <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-18906223348984102342012-10-31T06:06:39.146+00:002012-10-31T06:06:39.146+00:00Anon 22:43, #1 you do have the ability to see what...Anon 22:43, #1 you do have the ability to see what "they" are doing, you just haven't learned how. You do have relatively low costs. Max you need to pay is less than $3 r/t. Retail traders used to pay $20 to $40 r/t in the 1980s. Priority order execution is not necessary. Co-location is a fleeting advantage not required or even a benefit to a discretionary trader.<br /><br />Anon, all you need to do is create and consistently execute a tested trading plan. It's not that complicated. Most of my trading issues have been because of that space between my ears, not methodology or markets. Creating structure is the way to mitigate this big handicap.Electronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-32783844402993487082012-10-30T22:43:39.910+00:002012-10-30T22:43:39.910+00:00Hi EL,
"Managing money in a hedge funs is co...Hi EL,<br /><br />"Managing money in a hedge funs is completely different"<br /><br />Yes, I realise this, and thought that I fully acknowledged it in my post. Floor traders, as you will know, used to benefit from distinct advantages, placing them effectively at the other extreme to a conservative hedge fund managing other peoples money . . .<br /><br />I was wondering whereabouts between these two extremes you felt the modern daytrader was positioned, and you have pretty much answered this question.<br /><br />In terms of specifics, someone like myself does not benefit from:<br /><br />1) Ability to preview institutional order flow<br />2) Ultra low commissions and exchange fees<br />3) Any kind of priority of order execution<br /><br />What privelleges or information, specifically, can I still benefit from as an electronic access trader in exactly the same way as you benefited on the floor of an exchange?<br /><br />Many thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-32112255717188005862012-10-30T03:28:56.113+00:002012-10-30T03:28:56.113+00:00Anon 00:27, how you are looking at the question of...Anon 00:27, how you are looking at the question of earnings is the problem. Managing money in a hedge funs is completely different as a hedge fund is not day trading using up to 100% of their capital. Firstly, the method that someone with, say, $30k to $100k uses to day trade is not scaleable using $millions. Secondly, when managing money, the question of drawdowns is important. A passive investor doesn't want to see drawdowns so typically the hedge fund will under invest. In fact, they make a higher percentage on their "RISK" investments but only employ a small percentage of the capital, hence a lower percentage return on the whole amount. The retail trader today is almost on par with costs for a floor trader of years ago and certainly is ahead of him in advantages with today's technology. In fact, my numbers in the post were on the conservative side as the average trade size can be greater than I showed.Electronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-77584003366367583832012-10-30T00:27:53.486+00:002012-10-30T00:27:53.486+00:00Hi EL,
I asked the original question last week to...Hi EL,<br /><br />I asked the original question last week to which you have kindly responded.<br /><br />Your answer suggests a possible return of about 25% per month. Given that most hedge funds would be pleased to return this over the course of a year, your answer might appear unrealistic.<br /><br />On the other hand, it's very well known that many floor traders could comfortably return 25% plus per month before markets came to be dominated by computers.<br /><br />Given that your readers don't now have many of the benfits that locals enjoyed twenty years ago, which elements of the edge found on the floor do you think are still attainable for retail traders operating outside the constraints of professional money management?<br /><br />And apologies for asking more questions!<br /><br />Thanks.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-4850236101007293352012-10-27T12:49:50.894+01:002012-10-27T12:49:50.894+01:00Great points made in this post and in the comments...Great points made in this post and in the comments section with regards to being CP and the discretionary element.<br /><br />I'm finding out that my preparation for live trading was essential where collecting stats are concerned. You are dead-in-the-water (fiscally speaking of course!) without the "documented track record"<br /><br />MMJames Edwards-Marchehttps://www.blogger.com/profile/08729606707965946825noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-64538016829580237102012-10-27T08:33:19.424+01:002012-10-27T08:33:19.424+01:00Anon 18:03, If a trader is CP, has a proven and do...Anon 18:03, If a trader is CP, has a proven and documented track record, 4 or 5 losses in a row, while very, very rare, does not matter. If this was algo trading then it's something else but as a discretionary trader, CP, a losing day is rare. 4 or 5 losses in a row is even rarer. Also, the loss in the stats in the post is a MAX loss and most losses would probably not hit that number but in stats, I work with worst scenario. Discretionary trading when you are CP is exactlt that. Consistently profitable. his is why getting to CP paper trading first is so important.Electronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-45177251829148654942012-10-26T18:03:28.644+01:002012-10-26T18:03:28.644+01:00El, even with the a good system, 4-5 losses in a r...El, even with the a good system, 4-5 losses in a row happen, that would make the account down 16% before recovery starts...is it not too much to experience 16% loss even for a good system?<br /><br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-22403906472871760402012-10-25T19:30:58.770+01:002012-10-25T19:30:58.770+01:00Anon 19:10, 3.33% largest stop is fine if you have...Anon 19:10, 3.33% largest stop is fine if you have a 73% win rate or better. Discretionary trading is not like algo trading. If a trader is CP then this is fine. Definitely NOT fine unless CP. Discretionary day trading needs to be more aggressive if you're CP or what's the point.Electronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-76536566084124887772012-10-25T19:10:48.031+01:002012-10-25T19:10:48.031+01:00$1,000 risk per $30,000 account?
It is 3.33% perc...$1,000 risk per $30,000 account?<br /><br />It is 3.33% percent potential loss per trade. <br /><br />Is it not too much for any system? <br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-42669974496234107012012-10-24T16:10:13.336+01:002012-10-24T16:10:13.336+01:00Anon 14:31, It's just dollars. What the number...Anon 14:31, It's just dollars. What the number of contracts are really don't come into the calculations. The numbers are representative of what people are doing trading my methodology.Electronic Localhttps://www.blogger.com/profile/10539999419310383613noreply@blogger.comtag:blogger.com,1999:blog-847353783015972405.post-51409226498227910872012-10-24T14:31:11.864+01:002012-10-24T14:31:11.864+01:00Tom, is your example assuming 1 contract traded or...Tom, is your example assuming 1 contract traded or is there a $ profit target? I realize this is hypothetical.Anonymousnoreply@blogger.com