live account increased by 42% in 2 months,DD=5%, looking for investors/advice

[KOLKA]

hi, i don't know if this is the right thread for this, let me know if it's not.

I'm looking to manage other people's money & for advice how it's best to go about doing this.

I know little about fund management, the legal/practical side of it.

Regarding trading, you can find my latest results below.

I been trading for about 11 years now, now i'm settled on 1 strategy that I apply, as you all know in this business it can take a while before you have a strategy, tested, re-tested and working. In my case it took about 10 years, with a few short-term working strategies a couple of years appart.

My results: My Live Account, I turned $5,680 into $8,082, in just over 2 months., that's 42% increase.

All positions closed. Maximum Drawdown = 4.33%, Profit Factor: 2.97.

As you'l see I only trade eurusd. Some might say 'of course you made money eurusd has been crashing, anyone could have made money', in that case consider the extremely low drawdown, and also according to the way the strategy was built and tested, it actually works much better during ranges than during a trend, so I am hoping to see that in practice as we are possibly entering a range on eurusd now.

So all in all I expect even better results for the next couple of months.

Plus you'l see that all the trades are very small amounts, this is due to extreme volatility increase in the last few weeks. With less volatility I expect much higher returns than I got now.

My strategy is composed of a variety of modules, it includes a number of approaches from fundamental to statistical, quantiative and technical,as well as a few modules i designed specifically for risk and account management.

I also use an ITA (Intelligent Trading Assistant) that was custom programmed for this strategy by a professional trader/coder.

With the ITA I can let it run and do the trades, and my job is to adjust it's parameters and analyse the market (fundamentally and technically). It's all done on a vps so there's no risk of system being down or anything like that.

My aim is to raise $200,000 to manage. I already have 1 investor putting $20,000 into it, I will have about $10,000 my own (I'm fully invested in my other businesses unfortunately hence can't commit more money). There is no limit on how low or the max anyone wants to invest, every little helps so to say.

I would also welcome trading other people's money for a comission arrangement. I would have to use my own tools though.

This forum is a fantastic place for advice and support. Now, if anyone can help me out with advice how to reach the above target or just generally coach me with advice on fund management - I would not forget it

I am also re-locating to Saudi Arabia to live (and the profit tax there is 2.5%, which means investors already get a higher %age return than in any other country).

Please find my detailed trading statement attached and do ask me for anything else that you may need.

Also, I only trade eurusd and the strategy was built specifically for that pair. To adjust it to another pair would take a couple of months as a whole series of tests will need to be run, and a bunch of fundamental indicators/approaches tested and prepared. Ideally I think it's best to stick with what works.

I look forward to you advice how to raise money or if anyone want's me to manage their money, or for any other useful suggestions regarding fund management/setting up

thank you,

Nick
ps: let me know if there's a problem with the attachment, and i can email/pm it to you

 

[bfirth]

seems to be a problem with the statement, I can't view it.

Not to knock you, but 2 months and 42% is not going to impress any savvy investor, like you say you may have just hit a lucky run, I've had accounts that I have made over 100% in a few week, its the longer term that is important.
If you do the same for a year, and compound your money by 42% every two month's, then you may be taken a bit more seriously.
The fact that you seem to have a very complicated method, and that it would take months to adjust to another pair, far from impressing me, make's me wonder if you may be curve fitting your method, in which case, again two months of profit is too short a period to judge for the longer term.
Don't take any of this personally, just trying to help,
if you had been tinkering with car's for 11 year's, and had just rebuilt one in the last two month's, getting a job with a formula one team would still, in all likelihood , be impossible.

 

[Lord Flasheart]

You could always call your trades live on the live forex call thread and build a reputation based on performance. all trdaes are posted live with stops

 

[KOLKA]

awsome to see some discussion on this. Lord i'm new to t2w forums. I can't call the trades live as I have software taking/closing them. That's how it was possible to do over 200 trades in 2 months, with very little involvement from me.

bfirth,
thank you for your comments. let's break it down a bit.
*2 months and 42% is not going to impress any savvy investor
> you are right, if it did the investor is a newbie. this isn't the impressive bit. the impressive bit is over 200 trades, and if you see how little leveraged each trade is means i can sustain massive movements against me (if i wanted to) and it would take only a verly little amount off the account. Let's take a typical trade being 0.6 lots (60cents per pip). For the account size of say $6,000, this means for me to wipe out my account the market must move almost 12,000 pips against me (not that I would let it go anywhere near that). The point is, such small leverage, bringing the results of 42% = this is what's impressive, because the risk is so incredibly minute. I could increase the leverage 4x and still only have the drawdown of 20%. 4*42 = 168% (uncompounded) for 2 months, does that sound better. However, this is my personal money and pretty much most of the cash I now have, so I am keeping the risk super low.

***If you do the same for a year, and compound your money by 42% every two month's, then you may be taken a bit more seriously.
> Thank you for the nice words, but if that happens, I'm pretty sure i will get more than interest. But this is unrealistic figures.

*very complicated method
> method is actually very simple, but it's beautifully put together, and I rely on software that was built for it to do the things I can't do as a human (i.e. watch the market around the clock).

*take months to adjust to another pair, far from impressing me
> the reason for this is if you want to do it seriously, you need to follow a procedure. 1. Let's say you use a bit of Fundamental Analysis for FX, for your pair. There are hundreds of tools within fundamental analysis that you can use, and only a dozen or even less have an actual impact. What I mean is this: Taking a Fundamental Analysis tool (eg: NFP, I use something different though) and doing a statistical analysis against that bit of the news/information and the actual price on the chart. One type of analysis you can do is let's say standard Pearson Correlation of that bit of fundamental news and let's say the Weekly Close of your currency pair. You run such analysis and find out that from the dozen of bits of information, only 1 or 2 are actually can be used at the moment (i.e. only those 2 news actually link with the price moving in 1 direction or another, and the correlation let's say is 0.7 - which is great). It takes time to find such information, analyse it, and find out what works.

When you create a method out of such 'modules', put them all together, then you can create something of a incrementally valid model (i.e. the different bits put together increase it's predictive power, let's say).

Now, this is only for Fundamental Analysis. Then we have Technical Analysis, Volatility Analysis (unless you want to blow up your account with a few moves against you), and Position Sizing and Target Setting modulues (if you want to have higher results rather than average or lower) and anything else you want to include to help you meet your goals.

Plus, I have software do most of the trades, and it would mean re-programming it as it was built specifically for eurusd.

Do you see why it could easily take a few months? In the past I traded different pairs, and a much less thought out model would take at least a month to update to a new currency pair.

* curve fitting your method
> I think this would apply if i showed you a past performance of a demo account, but for a live account I can't see how I can fit the curve. but do correct me please if i got this one confused.

*if you had been tinkering with car's for 11 year's, and had just rebuilt one in the last two month's, getting a job with a formula one team would still, in all likelihood , be impossible.
> that is beautifully said but it's more than tinkering, it's kinda like putting them together, taking them appart and wanting them not just to drive but to fly to the moon as well. if you can make such a car, i'm pretty sure formula 1 will be interested. you are right though, i need to run it for at least another 8 months or so, so there's enough proof it won't collapse down to earth when it reaches the stratosphere. let's see


=> traiding is like running a gigantic factory machine. the machine is working at incredible speed, but nobody knows how to really run it. You do one mistake and it will not hesitate to chop off your fingers, your arm, or your head. So let's keep our bodily parts and focus first on how to manage the risk, and only after on how to make a profit.

 

[KOLKA]

ps. i can't post the results without revealing my account number, which i don't want to do. is there another way to do it? (and screen printing the whole report into bitmap is a nightmare).

 

[tommason]

I posted all my trading statements on my posts and I can scratch off my personal info.
how come ur not so good with basic computer skills.
trading is more complicated than just editing statements.
btw, I make 500% in 1 month.

ps. i can't post the results without revealing my account number, which i don't want to do. is there another way to do it? (and screen printing the whole report into bitmap is a nightmare).

 

[KOLKA]

hey tommason,
500% a month? sounds excellent, but to get this i'm afraid you are way overleveraging - careful one bad move against you and your account is wiped

what's your drawdown? have you posted your mt4 report on t2w with individual trades?

i looked through your posts but can't find the statements you refer to. can you link me please?
my mt4 statements are in html format, which is what caused the complication, if it was pdf like yours then there'd be no problem

 

[tommason]

here is my thread, see on the right side there is a paper clip symbol click that and you will see 5 attachment.
http://www.trade2win.com/boards/mem...e-i-have-1-month-real-live-record-so-far.html

im only overleveraging if market go against me actually and try to break even or one tick profit, not all the time. I wiped my account like 10 times or more in a less than a month in the past 2 yrs. now i can survive more than that.
I had huge drawdown like 33% or more is true but I managed to be profitable before market close and close everything out most of the time (maybe only carry it overnight once or twice in 1 month).

I dont use MT4 sorry. but i have real broker statement, which send to me everyday in pdf form.

hey tommason,
500% a month? sounds excellent, but to get this i'm afraid you are way overleveraging - careful one bad move against you and your account is wiped

what's your drawdown? have you posted your mt4 report on t2w with individual trades?

i looked through your posts but can't find the statements you refer to. can you link me please?
my mt4 statements are in html format, which is what caused the complication, if it was pdf like yours then there'd be no problem

 

[KOLKA]

hey Tom,
thanks, i found the attachments now. Well, congrats! It's a pleasure to see someone making good money with trading! I graciously bow to you

The wiping of the account and the 33%DD is not that much of a problem, one can always figure out a manageable MM system to go with the method.

reading your thread, i see you also have some cynical people answering to you. it's a pity people waste time writing cynical answers. i think it's an anger issue, they get angry seeing someone is making money (and that they are not) and hence they are propelled towards such an answer. Let's empathise with their inner struggles.

Tommy i have few questions for you:

1) Have you thought about building a code to help you scalp. I did 24/5 trading before, and it's a real headache waking up during the night and being afraid to leave the computer. A friend coded my method then, and I spend a max of 1 hour per week just checking my vps. You may find it massively increases your profits (as frequency of trades goes up).

2) Out of all the things you can trade, why do you trade futures, and the ones you do? (I assume you discovered some 'clever' book or someone coached you into them, right?)

3) What's your Big Plan? (I mean do you want to trade only for yourself, or to manage other's money as well. In the latter case you may need to reduce the risk element of your method, but it does mean you could start to rotate millions much faster).

nick

 

[KOLKA]

so the question is this tom:
i) are you happier with 500% one month, and next month -600% drawdown, or ii) a steady % increase each month?

Looking through your thread, it seems that your account jumps up and down quite a lot from green to red. I guess that's why you wiped out before.

Why don't you reduce your exposure (leverage) to the level where you can 'survive' through the negative run, and continue making money through the positive one? It looks like you have a strategy but MM is missing. The clever integration of 2 will protect your profits, so you can add to them and not take from them.

 

[tommason]

1) human mind are much better than system. system cannot see what important news are coming,options expiration week coming, light out and so on. It just impossible to quantify everything in ur system. so if you want to build a system, I recommend you monitor it dont just leave it alone. plus just in case ur power and internet connection is off. you can ur broker to offset ur position at least
some professional turn on and turn off their system depending on the news coming,because the system might react strange or differently when that news or important even come. so hybrid is the best combination compare to system alone.

still I believe i can make more money than system does in day trading unless I have huge account like those hedge fund so they can use algorithm. but they dont day trading like me they are position trader!! (highest return so far is Rennaisance Tech hedge fund).

2) I trade futures b/c it requires much less balance than trading stocks, it doesnt have uptick rule, lower commission, its better market to scalp, you actually pay less taxes than trading stocks, high leverage, high liquidity in the futures market I trade at least.

I trade diff commodity so i dont get stuck into one and force myself.
its just better to see more options. when the other market has better risk/reward i can always switch. I dont force myself to trade in just 1 market. its just better to make decision if u have more options. make sense ?

but again u have to be familiar with the underlying first in terms of price volatility, range movement, liquidity ,etc.

here are some reason
http://www.velocityfutures.com/futures_vs_equities.html
http://searchwarp.com/swa117990.htm
http://emini-watch.com/emini-trading/why-trade-emini-futures/

3) I only have 1 month and couple days of statement. I dont think i have enough credibility yet. so ill take a rain check on that.
my big plan is to make lots of money from trading so that i can trade for a living.
its easy no overhead costs, no employees, u just worry about urself and ur money.
if u have so many customer under you , you will get called and asked consistently its just too much drama. especially if ur customer is not rich enough to withstand. its just too much conflict of interest. If i lose money , I would feel v bad for them,

my trade basically is based on higher risk = higher reward & vice versa.
i might reduce it depending on the situation. this familiarity with situation is v important (this is one of my secret).

I will post my trading statement tonite. today, I made 5015 before comm and fees. so i might net 4500 today. decent income for 4 hours of trading.

I didnt trade on monday b/c I had a midterm yesterday and I think I failed

hey Tom,
thanks, i found the attachments now. Well, congrats! It's a pleasure to see someone making good money with trading! I graciously bow to you

The wiping of the account and the 33%DD is not that much of a problem, one can always figure out a manageable MM system to go with the method.

reading your thread, i see you also have some cynical people answering to you. it's a pity people waste time writing cynical answers. i think it's an anger issue, they get angry seeing someone is making money (and that they are not) and hence they are propelled towards such an answer. Let's empathise with their inner struggles.

Tommy i have few questions for you:

1) Have you thought about building a code to help you scalp. I did 24/5 trading before, and it's a real headache waking up during the night and being afraid to leave the computer. A friend coded my method then, and I spend a max of 1 hour per week just checking my vps. You may find it massively increases your profits (as frequency of trades goes up).

2) Out of all the things you can trade, why do you trade futures, and the ones you do? (I assume you discovered some 'clever' book or someone coached you into them, right?)

3) What's your Big Plan? (I mean do you want to trade only for yourself, or to manage other's money as well. In the latter case you may need to reduce the risk element of your method, but it does mean you could start to rotate millions much faster).

nick

 

[tommason]

yea that june 1 trade was awful, because I trade couple mins before energy market close at 1:30 Central time. so it wasnt volatile enough for me to break even or make money.

u can see my june 1 statement was losing in oil only. (that was 7600 loss which is ~31% of my balance). so i have to make it up the next 2 days which im succesful b/c i dont trade couple min before market close.

I like steady % increase each month of course. I want to trade for a living. no one wants option 1 ,ur crazy haha.

I reduce my exposure v much during important situation (one of my secret).
if u dont know this as a trader. its almost impossible to be succesful.
that separates me from my past losing months and years.

so the question is this tom:
i) are you happier with 500% one month, and next month -600% drawdown, or ii) a steady % increase each month?

Looking through your thread, it seems that your account jumps up and down quite a lot from green to red. I guess that's why you wiped out before.

Why don't you reduce your exposure (leverage) to the level where you can 'survive' through the negative run, and continue making money through the positive one? It looks like you have a strategy but MM is missing. The clever integration of 2 will protect your profits, so you can add to them and not take from them.

 

[dealer911]

ps. i can't post the results without revealing my account number, which i don't want to do. is there another way to do it? (and screen printing the whole report into bitmap is a nightmare).

Hi kolka - I would suggest you try freinds and family first as I think someone would have to really know you to invest in such a risky strategy - I say risky mainly because of the short 2 month results history you are prepared to give and also because you are not FSA approved and there could be a chance I wouldnt be able to find you in Saudi to get my money back ! (I am not questioning your integrity you understand just highlighting the risk to investors)
Firstly why not just keep going with your own cash - try and ad some more funds of your own and get a longer audited history.
I have had freinds and family back me in the past and while it does ad a whole new element of stress it worked out fine for me. (and them ..in the end!)
I just dont think a stranger would back you based on what you have so you need to look at other possibilities.

 

[D70]

Come back when you have 5 years history under your belt.

 

[tommason]

LOL if after 5yrs u earn a lot of money, u wont need any investors.

 

[montmorencyt2w]

I like Kolka's low-leverage and money management better, but I like Tommason's manual (non system) trading better. Between you, you may have something.

But both of you need a much longer successful track record, in my humble opinion, before making too bold claims.

As for trading other people's money, that sounds like a minefield, and depending on where you are, there could be huge legal implications. For friends and family, it's a bit dofferent I guess, and probably that's where I would start, not that I would ever trade anyone else's money I don't think. But if I did, it wouldn't be until I had a much longer successful track-record.


Good luck to you both, anyway.


Cheers,
Mike

 

[tommason]

thanks Mont. ur dead right , thats what I told him. i dont have enough records.

I like Kolka's low-leverage and money management better, but I like Tommason's manual (non system) trading better. Between you, you may have something.

But both of you need a much longer successful track record, in my humble opinion, before making too bold claims.

As for trading other people's money, that sounds like a minefield, and depending on where you are, there could be huge legal implications. For friends and family, it's a bit dofferent I guess, and probably that's where I would start, not that I would ever trade anyone else's money I don't think. But if I did, it wouldn't be until I had a much longer successful track-record.


Good luck to you both, anyway.


Cheers,
Mike

 

[KOLKA]

Hi kolka - I would suggest you try freinds and family first .....

Thank's Dealer. That's what I'm doing now. I have planned this business like this: 1) Raise my current account by as much as possible for next 10 months, 2) Create My 'Personal Fund' in a couple of months by borrowing money from the bank, 3) Create 'Family fund' (at a later point), 4) Learning to Go Pro by setting up a proper fund (if there will be point).

1. dealer you trade for a living now, or as part time?
2. What do you trade?
3. What's your average year performance?

 

[KOLKA]

LOL if after 5yrs u earn a lot of money, u wont need any investors.

haha, true said

 

[KOLKA]

I like Kolka's low-leverage and money management better, but I like Tommason's manual (non system) trading better. Between you, you may have something.
Mike

Hey Mike, can you be more detailed what you like about Tom's system better?

I think there was some misunderstanding about my system. It's a 'non-system' or manual, or whatever terminology is more appropriate. What I use programmed is not a system, it's a module, an ITA (Intelligent Trading Assistant). The difference between Coded System and an ITA is like this:

System - you turn the script on and let it run, you build it based on past data typically over a large period of time, you optimise it to that data to find out best band of parameters, etc. I don't believe in Systems myself as it's like letting a car be driven by a monkey and you sitting on the back seat - a bit suicidal.

ITA - is situation specific. You build a code with a series of modules to do different things dependent on what happens in the market. The modules will not do these things themselves - you have to activate and deactivate certain modules dependent on what you think market is doing right now. This is typically done on a weekly basis, but sometimes two times a week or something like that depends on what happens.
When you prepare an ITA for work, you do NOT follow the same procedure as you would testing a System. It's like this: System is supposed to replace the person, an ITA is a tool you turn on/off, tweak, modify. It's like Car Running on AutoPilot (System) and You Driving a Car (you managing an ITA).

One more thing, ITA does not analyse the Market Direction, etc. Although mine has a module built in, I have it deactivated (I don't want the car to run on autopilot). So it just does entry/exits and I tell it around what levels and how to do it to give me what i need.

does that make more sense?

What's the point in an ITA? The way I use mine is to 1) enter the market when I'm not at my desk, 2) High Frequency of Trading (Trade Repetition NOT opening too many trades) = example: Price goes up -> ITA Enters -> It Drops ITA TP's -> It Rises Again -> ITA enters -> Drops again ITA TP's. If you do this right in 1 day, you can get multiple trades TP'ing repeatedly when in reality price isn't moving up or down (just bouncing around). Like for instance if you set your TP's to be below 1H Typical Bar Range, in high volatile situations (let's say yesterday, eurusd) ITA with TP=30 pips, will TP 4 trades for you (120 pips) = with exposure being of only 1 trade at any given moment in time. I call this High Frequency part of the approach, it's essential to getting a higher %return with this method.