I don’t like me too posts, but I completely agree with TSH. And averaging down does make sense if done prudently, not automatically. When the market is this volatile, it is hard to use sensitive stops, so money management is probably a better way to avoid getting whipsawed…
Bradley Gudgeon, manager of one failed system (BluStar3XGold) and soon of another one (BluStar3X). Avoid him at all costs. He never responded my emails when things turned awry at BluStar3XGold and lost my shirt because of him. Now that system is discontinued. Quite shameful!
a perspective from a novice
as a subscriber, am i correct in that simply by choosing to add stop loss you can 100 percent avoid massive wipe out through a martingale?
Roscoe,
The best investment that you can do for yourself is taking the time to study what is a martingale MM and understand why in the long term you have 100% certainty to go broke. Then you will have all the answers you need.
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Hi DavidStephens
you will find hitting that stop occasionally causes more losses than the very rare 10% crash loss. = this very true in the
S & P E-mini futures.
best regards
LS6
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If you add a stop loss to a martingale system can you can usually (but not always) avoid massive losses. However you will eventually hit the stop loss so you are likely setting yourself up to lose money. You can be profitable if you make enough from the system before the stop is hit to compensate for the losses from the stop, but with martingale it’s not worth the risk as gains are usually slow to come.
It takes a lot of simulation and testing of various systems to learn the various ways failures happen and which are worse than others. IMO martingale is ALWAYS bad. Even with a stop you are likely to eventually lose money. And the kicker is there are better ways to invest if you are going to take that sort of risk. If you know you are risking catastrophic loss (like you are with martingale), then make gains commensurate with that risk. The problem with martingale is you are risking total failure to make consistent crappy little gains.
If you’re going to take the risk of catastrophic loss at least make good gains. Take a small amount you can afford to lose and trade some super high return system with clear big risks. Those systems can double and triple quickly. As you make money take out some of the gains and bank them. If/when the system eventually hits its big drawdown you’ve hopefully already banked the original investment plus significant gains. If it blows out before you make enough to be profitable, well that’s the risk you were taking and why you didn’t put too much into the system.
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AshM,
What are your favorite 3 moderate risk strategies?
Rick
Traders,
Feel free to monitor my trading strategy.
Thanks
I lost 37k on Ascendant TY.
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Thanks for letting the community know. That sort of thing must happen over and over again on here. I honestly think the martingale systems on here and the damage they do keeps Collective2 from going more mainstream. There should be an easy way for users to avoid that fate. It shouldn’t be difficult to warn on systems that occasionally use oversized amounts of leverage.
Sorry to hear your loss, btw, what is your scale for that strategy?
Add it to the list. Took subscribers down with this madness. Terrible strategies and never answered differences between systems. Im sure its just a matter of weeks before other subscribers get burned by his martingale chasing for high win rate, no matter the outcome!
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I’m just curious how the developer will answer this high DD. It will be great if his real subscribers share their experience regarding his strategies, therefore, there will be no bias.
He now operates under the alias BlueGirl (pretending to be his girlfriend). Would be perfect comedy if not for the fact that people most likely got burned very bad.
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Something did not go as expected… Another example of wrong expectations…
He buys options around expiration waiting for big move in the stock. I’ve read a lot about this idea, the conclusion - it is kind of a lottery.
Hopefully people see and aware how he is doing and he has some other strategies. That’s why, people needs to see room to grow when you place the order and also stop loss. That’s the different between professional trader and gambler.
But looks like his strategy works well. I don’t mean his trading strategy works well, but his way of generating short-term eye popping return in order to attract subscribers. When the system crashes after running for a few months, he just creates another one without that ugly drawdown number. It is very sad that some genuine systems take months & years to build up a track record and take a long time to accumulate subscribers; while some “crazy” high flying systems can create attention to sign up subscribers in 1-2 months time and turn in some quick subscription revenue. But does that truly reflect what the C2 subscriber population is doing?? Chasing after quick profits systems but don’t even care how they work???
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Yes. And it’s part of why most people using C2 lose money.
The vast majority of small investors lose money, usually by chasing strength and fleeing after losses. Why should we expect the behavior of C2 investors to be any different?
