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Day Trading? Yes!


#1

Day Trading? Is this the answer to volatile markets?

My answer is definitely yes.

The economic world is changing in front of our eyes every day and we are probably approaching a significant point of explosion because of the growing debt burden every day. Since the range of opinions on this issue is great, we are expected to continue to see increased volatility, which reduces the possibility of generating significant profits while maintaining a low level of risk.

Most of the risk to traders stems from holding stocks overnight due to the increasing volatility.
This means that strategies which invest most or all the money at their disposal and hold the overnight position, will be exposed to high volatility that will sometimes be insufferable to investors.

The impossibility of being exposed to the market by a significant percentage, reduces the risk but also the yield potential.

In order to produce high returns while maintaining a low level of risk, we should eliminate exposure to the market by night and invest all the available funds.

The only option to do that is by day trading.
Day trading gives us absolute control over the risk and on the other hand the wonderful possibility today to enjoy the high intraday volatility.

A successful strategy of this kind can function as a complementary strategy to other strategies or even as a single strategy, at least until we see the market coming back to itself.

Recently, I started a new strategy of this type that trades only within the day and will not hold position overnight. It buys and sells volatility (VXX) with almost (95%) of the available funds. Due to the high volatility, it will not be a surprise to see it generates significant profits.

The strategy is VIXTrader Day Trading and it has just started.

The idea behind this strategy is similar to the one behind VIXTrader and VIXTrader Professional. More than 50 different trading strategies that operate simultaneously in both trading directions, long and short.

I think it might be a good idea to test it through a simulation before signing up. It is also good idea to allocate the right amount of money in relation to other investments exposed to the market overnight.

I also think that the developers here should try and see if their strategies can be turned into a day trading strategies in order to complement the strategies they have today and to reduce the overall risk of their exposure to the market.

Anyway, as long as the high volatility is with us, all my other strategies will continue to maintain strict risk management. Of course, once the volatility begins to decline, the exposure to the market will increase accordingly.


#2

Should be interesting. But Robert I am confused.
Why do you have two different profiles?


#3

Two years ago, when C2 was a new site for me I made a mistake and opened 2 profiles…This kind of mistake known in the world of programmers as a “trailing error” :joy:
I hope I don’t have “trailing error” in my code… :wink:

Maybe I’ll ask C2 to delete one …


#4

Day trading is never answer from long term point of view. You are competing with big money + slippage + subscription. Statistically, one of the better ways to lose capital fast.


#5

Even though your new system has performed very well so far and in fact is likely to continue this way I have not changed my position regarding selling volatility without hedges in place. Black Swans can also occur during the day and if you happen to be short volatility it could not only destroy your system but your whole account. Remember, Black Swans can never be predicted, think 9/11 event.


#6

Not to be alarmed but do you really want to over leverage that much? The rule of thumb is to not risk more than 2% loss of equity per trade.

Any sudden news during the day can cause a margin call. But anyways if thats the kind of risk you are into then go ahead by all means…lol


#7

One more thing Robert. In past, you did project yourself as master of risk management. I always thought that answer to increased volatility is reduced exposure /strong risk management. But switching everyone to day trading systems? It looks like a number of current subscribers is weighing on the process of decisions making.


#8

@MarekJ, it looks that way, with 95% of the account margin to trade. Who cares if the strategy crashes like most of the C2 strategies and subs loss of money…lol


#9

is it not blatantly obvious? its called hedging :smile:


#10

it would be a cool feature for trade leaders to delete profiles :wink:


#11

This is the question to Matthew. Why if C2 creates a feature “to create”, automatically does not program opposite feature “to delete”? Higher layer of account management can restrict some features, but deleting profile should not be an issue (better to give a customer to delete profile than keep twenty of them).


#12

Do you mean you’d be ok with C2 deleting profiles of system creators?

I for one would disagree. I find it valuable to help weed out guys that come back under semi-different names trying to disguise their past (see Tom Mearis/Brad Sellers/Carl Ross, etc. among many others)


#13

Interesting how this strategy is not TOS. :thinking::roll_eyes:


#14

Do you want that a developer has twenty profiles? If I look to subscribe to strategy, there are some params like a length of strategy, max drawdown, leverage etc. And profile history really doesn’t matter as past performance does not indicate future performance (look on Robert how many strategies he created after VixTrader and how they are performing).


#15

I don’t want him to have 20 profiles. I’d prefer just one. Makes it easier to track him.

Past performance does not indicate future performance. Correct. However to me that applies more to positive performance than negative. That is…

If some developer has 20 different profiles, and his systems have all blown up under those profiles so he starts new ones in the hopes no one sees his old ones, and suddenly he is up 30% in 3 months and is all the rave of C2 with his “new and improved” system - some on the community might not realize he has other profiles and past blow ups and invest with him, which to me is unwise.


#16

f you really trust this sentence in both directions, each new strategy is separate from past, what makes past irrelevant. You just evaluate a single strategy and you are done. Please show me a single strategy, were developer had bad past and in new strategy >1-year good performance with DD<20%? I can show you many developers, that did create a single good strategy in past and every next strategy was a failure.


#17

You can do that all you like. I’ll do that too, but if his prior systems look similar in what they trade and how, I’m going to put some weight on that.

I’m sure those are abundant. I’m not sure if we are arguing or agreeing here.


#18

We agreed that we are choosing a strategy based on different criteria :slight_smile:

Most people are choosing strategy after 2-3 months of good performance and there is “no past” or “acceptable past”, they will trade strategy and lose account after 6 months.

Some people chose strategy after 1-year or more, >99 trades, performance>20%, DD<20%. And past? It can be an excuse not to trade strategy. And most likely a bad excuse.


#19

Can we please stay at the subject matter of this thread.
Maybe open a new thread under something like Profile Changes.


#20

Look Dog, some people want to talk about 1-month strategy performance, if subscribe or not, so no more hijacking threads And sorry Karl and Robert!