Aggressive Traders

[Captain Currency]

From applying the money management strategy set out from The Quatloosian Guide to Casino Gambling page what difference would it make to my profit & loss at the end of the month?

Qualtloosian says at: "So, let's take the above system and turn it on its head. If we lose, we will increase our bet by $10, but if we lose (I think he means WIN) we will decrease our bet by $10. The theory here is simply that we will always win $10 more than when we lose".

OK, so applying his betting strategy to the trading activity for November '07, how does it pan out?

I have set one of my own rules into this strategy, I would start off with 4 lots minimum, (based on the size of an account) even if I won the next two trades, rather than decreasing my lot size it would not go lower than 4 lots. My minimum lot size per trade would always be 4 lots.

So from Qualtloosian strategy, I will start off trading 4 lots, if I lose a trade I will increase the next trade to 5 lots and so on. If I win a trade I will decrease my next trade by 1 lot.


Here goes, wish me luck! (see attached thumbnail)

Ok, that wasn’t too painful & by using Qualtloosian betting strategy there was an extra $354 on top of my profits at the end of the month.

However as Qualtloosian says himself you got to have an edge and be able to beat the house. Bad luck or losing trades will push your lot sizes up to where you are making larger bets than you want to make.

Bottom line is your system need to be coming out on top more than 50% of the time.
You need to start off in your initial lot size so that a number of losers won’t be using all your margin. Drawdown will be greater than normal using The Qualtloosian betting strategy.

For more aggressive traders who are looking for greater results this may be of benefit.

Important note: This is not advice or is it me telling you what to do. You are responsible for your own trading. Trade carefully!

 

[Hoggums]

From applying the money management strategy set out from The Quatloosian Guide to Casino Gambling page what difference would it make to my profit & loss at the end of the month?

Qualtloosian says at: "So, let's take the above system and turn it on its head. If we lose, we will increase our bet by $10, but if we lose (I think he means WIN) we will decrease our bet by $10. The theory here is simply that we will always win $10 more than when we lose".

OK, so applying his betting strategy to the trading activity for November '07, how does it pan out?

I have set one of my own rules into this strategy, I would start off with 4 lots minimum, (based on the size of an account) even if I won the next two trades, rather than decreasing my lot size it would not go lower than 4 lots. My minimum lot size per trade would always be 4 lots.

So from Qualtloosian strategy, I will start off trading 4 lots, if I lose a trade I will increase the next trade to 5 lots and so on. If I win a trade I will decrease my next trade by 1 lot.


Here goes, wish me luck! (see attached thumbnail)

Ok, that wasn’t too painful & by using Qualtloosian betting strategy there was an extra $354 on top of my profits at the end of the month.

However as Qualtloosian says himself you got to have an edge and be able to beat the house. Bad luck or losing trades will push your lot sizes up to where you are making larger bets than you want to make.

Bottom line is your system need to be coming out on top more than 50% of the time.
You need to start off in your initial lot size so that a number of losers won’t be using all your margin. Drawdown will be greater than normal using The Qualtloosian betting strategy.

For more aggressive traders who are looking for greater results this may be of benefit.

Important note: This is not advice or is it me telling you what to do. You are responsible for your own trading. Trade carefully!

You will eventually run out of margin - this is a variant of a martingale system and you will be betting larger and larger amounts until you either lose the nerve or you get margin called.

 

[Captain Currency]

You will eventually run out of margin - this is a variant of a martingale system and you will be betting larger and larger amounts until you either lose the nerve or you get margin called.

Hello Hoggums,

You may not run out of margin. The outcome will be dependant on your strategy, and dare I say it LUCK! number of winners, number of losers ($ amounts).

Of course a system with a small edge can have a long string of losers, this is where its always good before you strart anything to ask yourself what can happen.

And equally a system with a small edge can have a long string of winners.

I would agree it is a variant of a martingale system, however I would say its not as aggressive as it.

There may be some traders out there that will trade 20% of their fund more aggresively than the other 80% of their fund.

Kind Regards,

 

[FXSCALPER2]

One thing almost everyone misses when it comes to how agressive one should be is the question of time. It all depends on how long you intend to follow a particular approach and why you need to follow it at all. Your circumstances are going to be a determining factor.

If I had only 3k, I would not kid myself tryong to trade by the book. I will wait for what I consider to be very good oportunities and bet huge. My risk would be to lose the 3k but, if I am right my reward will change the way I trade. That is one way to look at risk reward.

Trust me, if you follow what everybody says, at best you will never get anywhere. If you have 100k to trade with and you want to make a living from it, the way to trade is to risk a small % and do it as any job. It will be routine and boring but you are not looking for excitment. It will be very stupid, however, to risk 1% of a 2k account. We have this idea that a 50:50 chance is very bad. If someone gave you a 50% chance of losing 2k and a 50% chance of winning 20k, you should take it even if it is a one off. Either you end up with 20k or nothing.

People who have enough money to live on and trade with don't fiddle with MM. People who do not have enough money try to find a way to make money by fiddling their MM. With a small capital, you are almost certain to lose if you tiptoe and be careful. There is no way I am going to sit here and try to make a living from 3k by being careful or fiddling with MM. Give yourself a break. If you do not have enough money to live on while you try to grow your capital, you are wasting your life. Either go for broke or do something else. Use the money and go on a nice holiday, although you are better of trying to make a small killing instead of get a sun tan. Stop living in a dream land.

You got small capital? Gamble it and try to make loads. You are going to lose any way.