Forum: System: KT2KM

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6/27/11 (12:59)User Removed1The chart and some statistics are wrong
6/22/11 (6:43)User Removed3Weak Hands
6/04/11 (21:55)User Removed1Volatile june
6/01/11 (6:05)User Removed1E&VGM update
5/31/11 (9:08)User Removed5Promotional Offer
5/25/11 (12:34)User Removed3Good position in the GRID
4/15/11 (11:51)User Removed1Holidays
 
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Subject:Weak Hands
Posted by:User Removed (Admin) ( C2 Score: 275)  New msg
 
Ignore user's posts for week month forever
When:6/21/11 (19:18) 
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This is a short post for newbie traders and newbie C2 clients. I´m afraid that some of them are not understanding how to trade or how to follow a system.

Take care of those systems promising incredible returns. But also take care of jump out of a system in the middle of a normal DD.

This month, my system fell 11.6% (now only 6.5%) and two subscribers abandoned my system, even when in my system details you can read the expected DD is between 10% and 20%.

How to distinguish a system blowing out and a normal DD is not easy, but you can do it.

First of all, take care to not choose a system that average losses.

Second, choose a system not over leveraged.

Third, study the system and the owner of the system. You must reach to the conclusion that is a reasonable person and a reasonable system.

And finally, don´t put all your money in one system. Rent at least 3 systems. Everything in this life can blow out.

Once said all this, let me tell you that you are doing badly if you leave a system in the middle of a normal DD. Profits and losses are part of the process of trading. Hopefully, in the medium and long term, profits will be higher than losses. But if you leave in the middle of a normal DD, you only will collect the losses and never will be able to make new profits.

When you choose a system, do it conscientiously and understanding you will face Draw Downs that you will have to suffer if you want the big prize.

Regards (and sorry for my poor english)
  
 
Subject:Weak Hands
Posted by:Michael Cook ( C2 Score: 669)  New msg
 
Ignore user's posts for week month forever
When:6/22/11 (2:30) 
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In response to post by User Removed of 6/21/11 (19:18)

This is a short post for newbie traders and newbie C2 clients. I´m afraid that some of them are not understanding how t...

See entire

I would add one thing to that.

Work out the largest expected Drawdown (ask the developer for an estimate) and only invest when the system is roughly half way to that. Pull the plug if the system significantly exceeds the full drawdown level, Doing that ensures that that will only be half the loss you would have faced.

Also this gives you a set exit number at the time of investing so there is less heartache when you are actually experiencing the drawdown. A great deal of the pain in losing money is not knowing exactly when to exit a system and hanging on and resorting to hope (a real four letter word).

If there is one thing I have noticed on this site it is that people love to invest at a new equity high. In my experience, that is categorically NOT how the professional market invests.

Jack Schwager has written really well on this subject with respect to investing with CTAs (professional futures traders). He pretty conclusively proves through some big studies that investing at a significant drawdown is massively more effective than investing at a new equity high.Kodiak2
  
 
Subject:Weak Hands
Posted by:User Removed (Admin) ( C2 Score: 275)  New msg
 
Ignore user's posts for week month forever
When:6/22/11 (6:43) 
Systems:
 

In response to post by Michael Cook of 6/22/11 (2:30)

I would add one thing to that.

Work out the largest expected Drawdown (ask the developer for an estimate) and...

See entire

Sure,

invest in a top is a bad idea...the best moment is in a DD. At least I do it in that way in the market...I never buy a top, only bottoms :-)

regards
  
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