High Freq Algo has about 1% of the leverage you do. Which is approximately what I recommended you drop to, about a week ago. That’s one reason that strategy might be attracting more attention than yours.
According to the Grid, there are only 9 TOS systems that lasted at least 3 years (1095 days).
Their average return is 11.15% and their average maximum drawdown is 44.43%.
By comparison, the S&P 500 3 year return (as of Sept 2022) is 35.15%.
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@GordonGekko2, having TOS prevents most crazy trading from the trade owner. TOS does not guarantee success true but at least there is the satisfaction the trader loses money like the subscribers.
Definitely leverage is one of the issue for this system (trading thousands of contracts) thats why sizing should be reduced in this case or it should be on TOS.
Anyways, thats my 2 cents if @EP_Capital wants to have subs I would recommend TOS or reducing contract size.
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He is obviously using an anti-martingale system, meaning he is only using his profits to grow his account.
These reverse martingales can create big drawdowns here and there (even though the “losses” come from the profits only) and are not for the average trader, I think the Trade Leader made that point perfectly clear.
If used correctly and the trading system has an edge, a reverse martingale can generate fantastic profits in a short period of time, even if the initial capital is small.
