Here is a review of this book, and Mr. This is actually fairly unique and he should be commended for finding this niche in the business. Different return profile and different target investor. There are few guys, and I have said this is print, who do short term systematic well. Crabel, Roy Niederhoffer, etc. My testing, intuition and observing other traders tells me that short term traders usually invite bigger risk possibility of ruin for the same level of return as longer term traders.
You may test it for yourself. In the last couple of decades I have seen some short term super stars come and go through this short term revolving door. No one is making a statement on mine being bigger than yours. In chaos theory this is called self similarity because trends occur at all magnifications, therefore all trading ranges work, its just what is suitable for you.
I agree with Trender…intraday trading has larger drawdowns in certain market types…like quiet bull markets…. Also emotions play a big role and chances of not placing trades is higher as an intraday trader…especially in rangebound situations where there are lot of whipsaws….
One of his day trader clients turns 50k into a million every year,banks the money with a hedge fund and starts with 50k again.
Another client of his trades forex up to 5 times a day with a k account and a 10million credit line from the bank. His system can potentially return million in profits annually but his psychology prevents him from trading size.
Muhammad, people give me hell when I talk of big returns from pro trend followers with audited track records…would love to see your assertions all in print. Please give this guys name to the FED. We can get out of debt in this country by Fall!
I feel these types of comments would best be accompanied by an audited track record sent to Mike in confidence. In terms of gain it is very difficult to beat long term trend following strategies. Transaction costs, not to mention quality of life will erode the value of short term gains the longer you trade. Conceptually, trading short term appears very risk controlled and psychologically comforting, however, the exact opposite is true.
Short term trading is another way of not dealing with reality. It is a form of imposed control on the market. Far better to accept what the market offers then to take what and when you can. Van also has some examples of how people fail to follow their system or make some mistakes and end up closing shop as well.
I guess the main point is that we should learn from these successes and failures. This is not a new idea but for some reason it seems most people try to deal with this issue by tweaking the system. At some point one must make peace with the fact that drawdowns are inevitable. With regard to returns and the risk of getting wiped out: They often do so without proper back testing or an understanding of the drawdowns involved. The purpose of this website is to encourage the free exchange of ideas across investments, risk, economics, psychology, human behavior, entrepreneurship and innovation.
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But this ain't clipping coupons. No risk, no return. Check out epic release: Revised and extended with twice as much content! Home Purchase Sign In Contact. Subscribe and receive Market Wizard video. Love your work Michael. I agree with Trender…intraday trading has larger drawdowns in certain market types…like quiet bull markets… Also emotions play a big role and chances of not placing trades is higher as an intraday trader…especially in rangebound situations where there are lot of whipsaws….
Sounds very stressfull though…. Like most things in life the faster you go the bumpier the ride. Can you have your mate please forward the file of tobys book to me please. Benoit Mandelbrot Nate Silver Moneyball Daniel Kahneman Eugene Fama "If you want the chance for big returns in bull, bear and black swan markets, this is where you want to be.
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