Traders' Roundtable

- Drawdowns < 50% - MAR Ratio > 1.2 - Returns > 35% for futures, 20% unleveraged stocks - Drawdowns < 40% - MAR Ratio > 2.0 - Returns > 50% for futures, 30% unleveraged stocks This would be tested over 20 years using the same system parameters for each year and each market. - Forum Mgmnt A good sys...

if i am going on my own, i can handle a 40% drawdown, so i would take about 3.5% per transaction. if i am managing client money, a lot of investors who want really high returns start getting nervous in the 30% range. after several thousand runs, there is a tiny % chance that we will experience a 10...

eck wrote:how many trades do we get, or do we trade in perpetuity?

Trade in perpetuity. Assume the opportunities are infrequent e.g. 3 or 4 such trades per year.

Consider the following two traders: Joe Trader has 100k closed equity His identical twin Jack trader has 80k closed equity and a position in commodity X, showing 20k open equity. They thus have identical total equity. Now, assuming Joe and Jack have identical risk tolerance, net worth, performance g...

What % of your net worth (not account equity) would you risk if presented with the following hypothetical trade opportunity: Reward to risk ratio: 5 to 1 Probability of profit: 75% Assume the market will not gap beyond your stop, and that you either take the full profit, or get stopped out for the f...