tag:blogger.com,1999:blog-2847890102780597763.post385295951737287798..comments2023-10-30T05:35:52.421-07:00Comments on Reviewing Everything Forex: Trading Reality and Automated Trading : Realistic Profit Expectations, Looking at the Barclay Currency Traders IndexDanielhttp://www.blogger.com/profile/00940108413648645894noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-2847890102780597763.post-12234336949777935852010-06-14T18:17:40.895-07:002010-06-14T18:17:40.895-07:00Hello OrangePotatoe (love the nickname by the way ...Hello OrangePotatoe (love the nickname by the way !),<br /><br />Thank you very much for your comment :o) I am glad you have liked the article. Definitely - as you say - the fact is that people generally simply don't want to listen. In general people who seek knowledge learn from others experience and people who are stubborn need to learn from their own. Thank you very much again for commenting :o)<br /><br />Best Regards,<br /><br />DanielDanielhttps://www.blogger.com/profile/00940108413648645894noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-6866668740888054422010-06-14T10:31:38.592-07:002010-06-14T10:31:38.592-07:00Excellent article. Unfortunately you have to hunt ...Excellent article. Unfortunately you have to hunt long and hard to find people speaking the truth like this. The sad fact is that most people don't want to listen.orangepotatehttps://www.blogger.com/profile/00565411347463857762noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-37819148332304372962010-06-11T14:52:55.840-07:002010-06-11T14:52:55.840-07:00And here's a great film about Paul Tudor Jones...And here's a great film about Paul Tudor Jones and what trading was like in the eighties:<br />http://www.tudou.com/programs/view/XH5W4vffBbY/<br /><br />Enjoy :)Gaborhttps://www.blogger.com/profile/12941208775019695846noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-52002646216066938642010-06-11T14:38:15.151-07:002010-06-11T14:38:15.151-07:00That 2:1 ratio between yearly average profit and m...That 2:1 ratio between yearly average profit and max drawdown seems to be a kinda universal rule in trading which supports your market efficiency theory, Daniel. Here's what Paul Tudor Jones says about this in the Market Wizards interviews (By the way, P.T. Jones' first idol in trading was Richard Dennis):<br /><br />Q: How do you measure your performance?<br /><br />PTJ:You've got to look at good traders historically. If a trader can on average annually deliver two to three times their worst draw down, then that's a very good track record, and I'd say that that's what I try to do.Gaborhttps://www.blogger.com/profile/12941208775019695846noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-29289446276888834272010-06-11T09:47:41.439-07:002010-06-11T09:47:41.439-07:00Hello JT,
Thank you for your comment :o) It's...Hello JT,<br /><br />Thank you for your comment :o) It's always great to have you around.<br /><br />I was thinking of getting my CTA certification next year to start managing large amounts of money so we'll see what time brings ;o). <br /><br />Regarding the Barclay Index, it has 119 different "traders" (which are actually hedge funds, individual traders and groups of traders) but many of them may use similar or the same systems. Evidently there are some very bad perfoming contributors and some better perfoming contributors and they form a somewhat "normal" distribution weighted towards the losing side. <br /><br />Can "too much" diversification happen ? Regarding profit it can certainly reduce overall profitability but the main gain you get is in robustness as your trading becomes more resistant to change. However eventually when you add a certain number of systems they start to correlate and the effect of adding additional trading methods becomes extremely reduced. So how many are too many ? We need more time go get this answer ! :o)<br /><br />The amount of money plays a role in the sense that it may limit or open up possibilities regarding diversification. For example a small 100-200K account may only trade on retail forex brokers while a 10 million dollar fund will be able to have direct interbank access with its own software solution, giving you the ability to different things, like high frequency trading. However in the end there are systems - like the turtle trading system and such swing systems - that can be used almost with any account size so the role the amount of money plays is only relative to the strategies used.<br /><br />I hope this answers your question JT. Thank you very much again for your comment :o)<br /><br />Best Regards,<br /><br />DanielDanielhttps://www.blogger.com/profile/00940108413648645894noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-67981190121066373622010-06-11T09:36:26.178-07:002010-06-11T09:36:26.178-07:00So, what I am seeing is that Atinalla No.1 could b...So, what I am seeing is that Atinalla No.1 could be a better suite of trading systems than this Barclay index... :)<br /><br />So, when do you plan on becoming a fund manager and when will you start accepting deposits. (wink) :)<br /><br />I think you mentioned that Barclay has 119 different systems. Just in my simple thoughts, it seems that this may be too many systems. I suppose my question is "how many systems are too many systems in a long term strategy portfolio?" Can you actually have too many systems... Does amount of money invested in the portfolio play the big part in this thought...<br /><br />Anyway, good post I always enjoy reading.<br /><br />JTtownjethttps://www.blogger.com/profile/15880548604941719268noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-46701568732962520322010-06-11T09:33:52.377-07:002010-06-11T09:33:52.377-07:00Hello Maxim,
Thank you very much for your comment...Hello Maxim,<br /><br />Thank you very much for your comment :o) However the Barclay Currency Trader Index does not distinguish traders by tactics so it is probable that some of them use mechanical systems to an important extent. <br /><br />We'll see where Atinalla portfolios stand with time. As I have always said, the important thing is that we know our risk targets and we understand our systems :o)<br /><br />Thanks again for the comment and kind words Maxim !<br /><br />Best Regards,<br /><br />DanielDanielhttps://www.blogger.com/profile/00940108413648645894noreply@blogger.comtag:blogger.com,1999:blog-2847890102780597763.post-26535967890865407882010-06-11T09:10:33.238-07:002010-06-11T09:10:33.238-07:00Hello Daniel,
It looks like your systems are trad...Hello Daniel,<br /><br />It looks like your systems are trade not worse, possibly even better than traders, on whose performance, the Barclay Currency trader index is based on!<br />If Atinalla project will achieve comparable or better performance, this would mean that automatic trading is a great alternative to a manual one!<br /><br />Regards<br />MaximUnknownhttps://www.blogger.com/profile/15646016022916380485noreply@blogger.com