How do you pick a good strategy or even a good stock when a rising tide raises all boats? Simple, you wait for a pullback. Does the strategy pull ahead when markets trade down? For every red bar, we see the bullish all the time stocks wash out. That is how I pick a good stock. Like panning for gold, I love it when we see a pullback because it leaves the gold nuggets when the black sand is washed out of the pan. The nuggets gleam in the sunlight when the black sand is gone. Be the nugget.
Thanks for my morning smile. Be the nugget. Love it.
I agree with you Arbi. I’m amazed at how many strategies on C2 are just martingale systems or they simply average down their losers and pray for a market bounce. I’ve been praying for a real pullback since I started my strategy 6 months ago so that subs can separate the wheat from the shaft. We might have to wait a bit longer, but it will come.
BTW, your strategy has intrigued me since you started it. Most traders hate to hold overnight yet your strategy seems to do great doing only that. Personally, I think you miss a lot by not holding on during the cash session, but its a great return with just holding for such a limited time frame. Great job!
Thank you for my second smile of the day.
It is, indeed, high time for a bear market to kick in. This bull market has single-handedly become the catalyst for widespread financial illiteracy.
Way too many people, investors and managers alike, have become convinced that “beating” an index means beating its return, or that performance equals annual return - and they will use both terms interchangeably! Most conversations in this forum and others have turned face-palm worthy for professional traders. That is why I decided to close subscriptions to my equity trading system altogether while building up its track-record in the background. Nobody will appreciate it in the current environment despite its tenure and MAR ratio.
It is, as I said, about time that actual traders get rewarded for achieving what trading truly is about: delivering all-weather, superior RISK-ADJUSTED returns that will put any mutual fund to shame over several years.
Your return of 8% with only about 9% drawdown looks great. I wish I could see the whole strategy. I think it would be awesome to see more systems like that.
I make sure my strategy is market beating in terms of cagr as well as drawdown, for the past 20 years
Every hedge fund beats the market over 1-2 years. Like 10% over 10 years. Less than 1% over 20 years.
Most people on this site as just trying to get subscribers on their 100% cagr for the year… I have not found many serious strategies yet
I agree that there are a lot of leverage heavy trend following strategies here that will not survive a sell off like we had in Dec 2017. I’m not sure that strategies who’s leaders are always predicting the next bear market and cannot profit from such an obvious up trend are much better either. Good strategies should be able to profit in multiple trading environments.
I will say it was pretty painful being short delta In my play money account over the past 10 days of exuberance. Fortunately Me Trump brought me well back into the black.
For C2 I am always looking for returns that a diversified from The market. No point in paying what are fairly high fees (at default leverage) to buy a big fist full of Beta.
Don’t confuse a bull market for market smarts
BTW, great trading this month.
Thanks mate. The headline is sarcasm.