Pedro
I feel it would be better to offer your system on a basis of 1 month free, and then only pay for performance. I might go for that.
At least that’s what I do. I even went one step further to not even offer it to subscribers for now, because I want to build a half year good record, otherwise I won’t even offer it. Well, of course I had to get into the worst drawdown in a long time, the moment I started it here, but then, what’s new? For now I am over it and hopefully heading for the green.
In my opinion, the more relaxed, the better. Chasing after single ticks and pips…mamma mia, who needs that…? Your’s seems relaxed, mine is EOD…who needs a screen for 8 hours a day when you’ve got a beach 5 minutes away…I even trade a bond system that only trades weekly… all it needs is 5 minutes on Friday.
So, if you wanna have a look over here once in a while, I’ve got your’s bookmarked as well.
Peter
Hey Randy,
You and I have had very similar experiences here at C2. I started at the beginning of May of this year and just recently gave up the game here at C2 due to too many losses. I will stay on the sidelines for now and continue to work at my dayjob. My account since May is down about 60%…I’ve been through a very large number of systems here at C2 and seem to somehow catch all of them at the exact time of their largest drawdown. I described these experiences in a previous message and have no need to recount any of them. Even Bris proved to be ultimately unprofitable which is about the only update to my previous review. I unsubscribed shortly before Randy.
I also tried Options in the Green and was very fortunate to miss alot of the recent drawdowns. Options on the Green is still on my watchlist but I’m moving right now and work is not giving me any time to trade right now. After losing tens of thousands here at C2, my number one lesson has been to BE PATIENT and wait (someone suggested 100 trades which is an excellent general suggestion, but it depends on the trading frequency of the system, the point is don’t be in a rush thinking you’ll miss the next big profit) before even subscribing to any system no matter how good it may look, and then use good money management even after it passes your first test. Never use more than 10% of your account in any system (not per trade, per SYSTEM!!!). THINK LONG-TERM GROWTH…where will this system be a year from now and mor eimportantly my account? 5 years?? DOn’t make the same mistakes I have. I NEVER look at new systems anymore, and need at least 3 months of profitability before I even consider. I like to see a system performing well in tough months (like Oct. of this year, one of my main reasons for selecting Options in the Green).
I’ve also decided to pretty much leave options alone, and they seem to be an execellent vehicle for DECREASING my net worth. As I said only options in the green remains on watch list for now, but if it proves unable to perform the I will end my search for a profitable option trading system. There are alot of interesting systems in futures and forex that I will be watching for the next few months and will probably stick to those from now on. Happy holidays all. Subscriber #5.
Hello Terrance,
Misery loves company! I’d attribute about half of my losses to trying systems that turned out to be too wild and wooly for my tastes, and half to the bad luck of picking more compatible systems exactly at the peak of their C2 equity curves (and riding them down to substantial losses before bailing out). I have one forex system (High-Sharpe FX) and one futures system (Russell 2K E-mini Aggressive) now and am hoping for better luck in 2006. Back to the Christmas dinner activities…
Randy
Also, the limitations of sharpe ratio is well documented and many systems which are untradable because of very small profits and unrealistic number of shares/contracts traded have high sharpe ratios.
I could not agree more with the above statement. Honesty, reliability (justice) and productiveness of a system are more important than the integrity of the system expressed in the form of the Sharpe ratio.
Integrity is the loyalty to rational principles. It is the loyalty in action to one’s convictions and values.
Few men flout their preceptual knowledge. On the conceptual level, however, the consequences of flouting one’s knowledge are not inescapable. On the contrary, to keep one’s value-judgments operative amid the vicissitudes of life is a volitional task. It requires that one act in focus, holding the full context of one’s knowledge and retaining the perspective of long-range purpose. Context of this kind can be held and long-range purpose achieved, only if man functions by the guidance of principles.
A closed-equity curve will paint the long-term picture of a system and the integrity evaluated from it will be a reflection of the true integrity of a system; same goes for honesty, reliability and productiveness of a system.
Systems traders know that if they are following a good system that potentially gives them a winning edge, in order to “cash in” on what that system has to offer, they must have a strong commitment to following each and every trade recommendation, even if the system is currently experiencing a drawdown. They are emotionally and financially prepared to do so because they already know the historical maximum open/closed drawdown that the system has incurred before making new equity highs. They also know that the worst time to abandon a system is just after a drawdown and just before it potentially surges to new highs.
In regard to consciousness, integrity requires that a man have convictions. If an individual evades the responsibility of considering ideas, if he is moved not by his intellect but by his feelings, his neighbors, his prescribed routine, then there can be no question of his acting in accordance with his ideas. By defaulting on the task of thought, such a man makes every virtue impossible to himself.
But holding explicit ideas is not enough. Like independence, integrity is a derivative of rationality and precludes any form of emotionalism. It does not mean loyalty to arbitrary notions, however strongly one feels they are true. Earning returns 0.001% greater than the risk-free interest rate with zero drawdowns, and perfect consistency is not an example of virtue. Integrity means loyalty not to a whim or delusion, but to one’s knowledge, to the conclusions one can prove logically. Like every other virtue, therefore, integrity presupposes a mind that seeks knowledge, a mind that accepts and follows reason, i.e., honest, reliable and productive.
When one has a measure of the true honesty, reliablity and productiveness of a system, then it should be evaluated (and only then it should be evaluated) as to how loyal it is to those principles.
I second that idea.
I’m subsciber of Extreme’os since October. I like this system and planing to follow it in the the 2006. When I accumulate enough money I’ll subscribe to other systems too.
