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It's a quite day so I'll make a few general comments.

Successful trading
Successful trading is like getting pregnant. Everyone congratulates you when you manage it but no one asks how many times you got fu¢ked first.

[USER=34930]@verce[/USER] in the "tny-tinybeans-group" thread is the perfect example, he's riding the wave of success without any of us knowing the journey he had to endure to get to his level of euphoria.

It's all about off-loading
Successful trading is all about buying a position solely in the hope of being able to off-load it to someone else at a higher price, so lets not try & complicate trading in the hope of making ourselves look like a trading genius. Pure & simple, good traders are calculated risk takers.

Risk
Risk is a fine balancing act of been stopped out early only to see the price recover 'or' watching the price keep falling and stopping you out at a much larger loss. Knowing when to sell also involves profit taking and not just accepting losses. Risk management is crucial when it comes to trading successfully as posted many times by [USER=13908]@peter2[/USER] in his "p2-asx-weekly-portfolio" thread. The last post on his thread is about 'Trade Management' & it's a recommended read.

It's complicated
First off, when it comes to risk you first need to find your level as risk varies between traders. Risk plays an important part in my Backtesting procedure & when it comes to risk management it's important to 'Dance to the music being played', or it's simply a matter of 'Horses for courses' take your pick.

Parameters
The graphic below displays some of the parameters I use to evaluate various risks using a variety of position sizing methods. The Exportation procedure is more intense than backtesting as the variables & parameters increase.

[ATTACH=full]95327[/ATTACH]

Backtesting & Monet Carlo runs
To me, backtesting gives a base comparison at best, a comparison between strategies or within a strategy. Backtesting & real live trading 'in my opinion' will never truly align as there is so many variables. Backtesting on historical data means JACK, 'out-of-sample' data is the only true measure of value, meaning paper trading is the only real measure of a systems worth.

Its not a level playing field
There is no way any of us sitting at home with limited information, slow internet service using off the shelf trading software can find better investments than the professional trader or the multi nationals that spends millions of dollars on research having easy access to company management. These companies employs teams of people who have the sharpest, fastest & sometimes the most unethical minds in the world - that's who you are trading against.

It's worth remembering
You're up against traders who will have more experience, more information & much more money than you so leave all your dreams of making quick and easy money, behind & concentrate on your survival. Your absolute first goal is to learn how to stay in the game & as with boxing you need to keep on your feet at all times, that's your one job.

The truth is, you need money to make money
Forget about taking a $1,000 account and turn it into millions. That is achieved through gambling, not trading. Instead, you should look to make an average of 25% per year & to achieve this it all depends on your risk appetite and trading style.

What 25% returns will buy
On a $20,000 account, you're looking at an average of $5,000 per year. (Xmas presents for the family)
On a $100,000 account, you're looking at an average of $25,000 per year. (this will Buy me one extra position)
On a $300,000 account, you're looking at an average of $75k per year. (this will meet the 'CAM Strategy' Mission Statement)
On a $1m account, you're looking at an average of $250k per year. (a couple of World Cruises)

This is extremely important, but most traders don’t get it, your account size matters.

PositionScore (Ranking your signals)
A good strategy has many key features giving you a fighting chance of survival, longevity as a trader is your number one job. 'PositionScore' is an important ingredient & [USER=68708]@investtrader[/USER] made a great post in relation to 'positionscore' for the benefit of others. I'm sure he knew I was aware of this.

[USER=68708]@investtrader[/USER] posted in the hope of helping others, the very essence of the 'Dump it here' thread.

Skate.

<blockquote data-quote="Skate" data-source="post: 1030088" data-attributes="member: 57364">It&#039;s a quite day so I&#039;ll make a few general comments. Successful tradingSuccessful trading is like getting pregnant. Everyone congratulates you when you manage it but no one asks how many times you got fu¢ked first. [USER=34930]@verce[/USER] in the &quot;tny-tinybeans-group&quot; thread is the perfect example, he&#039;s riding the wave of success without any of us knowing the journey he had to endure to get to his level of euphoria. It&#039;s all about off-loadingSuccessful trading is all about buying a position solely in the hope of being able to off-load it to someone else at a higher price, so lets not try &amp; complicate trading in the hope of making ourselves look like a trading genius. Pure &amp; simple, good traders are calculated risk takers. RiskRisk is a fine balancing act of been stopped out early only to see the price recover &#039;or&#039; watching the price keep falling and stopping you out at a much larger loss. Knowing when to sell also involves profit taking and not just accepting losses. Risk management is crucial when it comes to trading successfully as posted many times by [USER=13908]@peter2[/USER] in his &quot;p2-asx-weekly-portfolio&quot; thread. The last post on his thread is about &#039;Trade Management&#039; &amp; it&#039;s a recommended read.It&#039;s complicatedFirst off, when it comes to risk you first need to find your level as risk varies between traders. Risk plays an important part in my Backtesting procedure &amp; when it comes to risk management it&#039;s important to &#039;Dance to the music being played&#039;, or it&#039;s simply a matter of &#039;Horses for courses&#039; take your pick. ParametersThe graphic below displays some of the parameters I use to evaluate various risks using a variety of position sizing methods. The Exportation procedure is more intense than backtesting as the variables &amp; parameters increase.[ATTACH=full]95327[/ATTACH] Backtesting &amp; Monet Carlo runsTo me, backtesting gives a base comparison at best, a comparison between strategies or within a strategy. Backtesting &amp; real live trading &#039;in my opinion&#039; will never truly align as there is so many variables. Backtesting on historical data means JACK, &#039;out-of-sample&#039; data is the only true measure of value, meaning paper trading is the only real measure of a systems worth. Its not a level playing fieldThere is no way any of us sitting at home with limited information, slow internet service using off the shelf trading software can find better investments than the professional trader or the multi nationals that spends millions of dollars on research having easy access to company management. These companies employs teams of people who have the sharpest, fastest &amp; sometimes the most unethical minds in the world - that&#039;s who you are trading against.It&#039;s worth rememberingYou&#039;re up against traders who will have more experience, more information &amp; much more money than you so leave all your dreams of making quick and easy money, behind &amp; concentrate on your survival. Your absolute first goal is to learn how to stay in the game &amp; as with boxing you need to keep on your feet at all times, that&#039;s your one job.The truth is, you need money to make moneyForget about taking a $1,000 account and turn it into millions. That is achieved through gambling, not trading. Instead, you should look to make an average of 25% per year &amp; to achieve this it all depends on your risk appetite and trading style.What 25% returns will buyOn a $20,000 account, you&#039;re looking at an average of $5,000 per year. (Xmas presents for the family)On a $100,000 account, you&#039;re looking at an average of $25,000 per year. (this will Buy me one extra position)On a $300,000 account, you&#039;re looking at an average of $75k per year. (this will meet the &#039;CAM Strategy&#039; Mission Statement)On a $1m account, you&#039;re looking at an average of $250k per year. (a couple of World Cruises)This is extremely important, but most traders don’t get it, your account size matters.PositionScore (Ranking your signals)A good strategy has many key features giving you a fighting chance of survival, longevity as a trader is your number one job. &#039;PositionScore&#039; is an important ingredient &amp; [USER=68708]@investtrader[/USER] made a great post in relation to &#039;positionscore&#039; for the benefit of others. I&#039;m sure he knew I was aware of this. [USER=68708]@investtrader[/USER] posted in the hope of helping others, the very essence of the &#039;Dump it here&#039; thread.Skate.</blockquote>

[QUOTE="Skate, post: 1030088, member: 57364"] It's a quite day so I'll make a few general comments. [B]Successful trading[/B] Successful trading is like getting pregnant. Everyone congratulates you when you manage it but no one asks how many times you got fu¢ked first. [USER=34930]@verce[/USER] in the "tny-tinybeans-group" thread is the perfect example, he's riding the wave of success without any of us knowing the journey he had to endure to get to his level of euphoria. [B]It's all about off-loading[/B] Successful trading is all about [U]buying a position solely in the hope of being able to off-load it to someone else at a higher price[/U], so lets not try & complicate trading in the hope of making ourselves look like a trading genius. Pure & simple, good traders are calculated risk takers. [B]Risk[/B] Risk is a fine balancing act of been stopped out early only to see the price recover 'or' watching the price keep falling and stopping you out at a much larger loss. Knowing when to sell also involves profit taking and not just accepting losses. Risk management is crucial when it comes to trading successfully as posted many times by [USER=13908]@peter2[/USER] in his "p2-asx-weekly-portfolio" thread. The last post on his thread is about 'Trade Management' & it's a recommended read. [B]It's complicated[/B] First off, when it comes to risk you first need to find [U]your level[/U] as risk varies between traders. Risk plays an important part in my Backtesting procedure & when it comes to risk management it's important to 'Dance to the music being played', or it's simply a matter of 'Horses for courses' take your pick. [B]Parameters[/B] The graphic below displays some of the parameters I use to evaluate various risks using a variety of position sizing methods. The Exportation procedure is more intense than backtesting as the variables & parameters increase. [ATTACH=full]95327[/ATTACH] [B] Backtesting & Monet Carlo runs[/B] To me, backtesting gives a base comparison at best, a comparison between strategies or within a strategy. Backtesting & real live trading 'in my opinion' will never truly align as there is so many variables. Backtesting on historical data means JACK, 'out-of-sample' data is the only true measure of value, meaning paper trading is the only real measure of a systems worth. [B]Its not a level playing field[/B] There is no way any of us sitting at home with limited information, slow internet service using off the shelf trading software can find better investments than the professional trader or the multi nationals that spends millions of dollars on research having easy access to company management. These companies employs teams of people who have the sharpest, fastest & sometimes the most unethical minds in the world - that's who you are trading against. [B]It's worth remembering[/B] You're up against traders who will have more experience, more information & much more money than you so leave all your dreams of making quick and easy money, behind & concentrate on your survival. Your absolute first goal is to learn how to stay in the game & as with boxing you need to keep on your feet at all times, that's your one job. [B]The truth is, you need money to make money[/B] Forget about taking a $1,000 account and turn it into millions. That is achieved through gambling, not trading. Instead, you should look to make an average of 25% per year & to achieve this it all depends on your risk appetite and trading style. [B]What 25% returns will buy[/B] On a $20,000 account, you're looking at an average of $5,000 per year. (Xmas presents for the family) On a $100,000 account, you're looking at an average of $25,000 per year. (this will Buy me one extra position) On a $300,000 account, you're looking at an average of $75k per year. (this will meet the 'CAM Strategy' Mission Statement) On a $1m account, you're looking at an average of $250k per year. (a couple of World Cruises) This is extremely important, but most traders don’t get it, your account size matters. [B]PositionScore[/B] (Ranking your signals) A good strategy has many key features giving you a fighting chance of survival, longevity as a trader is your number one job. 'PositionScore' is an important ingredient & [USER=68708]@investtrader[/USER] made a great post in relation to 'positionscore' for the benefit of others. I'm sure he knew I was aware of this. [USER=68708]@investtrader[/USER] posted in the hope of helping others, the very essence of the 'Dump it here' thread. Skate. [/QUOTE]

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