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...and if you take that very sensible logic and advice to its ultimate
conclusion you end up day trading a single market!
The best I should have thought anyone could do, to be consistently
successful, would be short term trading a tight portfolio, according to your
ability to withstand margin calls, draw downs, etc.
Looking back over the long term and looking left in the very short term are
two very different things. Sure, we would all be millionaires if we had
jumped on the bull in '95 and stayed there until......???? But looking at
the market over a very immediate picture and making an assessment of the way
it is setting itself up... that can be done day after day and, with the
right money management concept, give you the edge to make money, on a daily
basis...
My two pennies...
Bill Eykyn
t-bondtrader@xxxxxxxxxxxx
www.t-bondtrader.com
"Learn to read the tape"
----- Original Message -----
From: "mike" <combat@xxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Sent: Wednesday, October 04, 2000 3:48 AM
Subject: [RT] RE: Richard Dennis and Aberration
>
> Dear RealTraders,
>
> It may be interesting to note the characterization of the Aberration
system,
> which is a long-term trend following system, and the report in the Chicago
> Tribune today that Richard Dennis is closing his managed futures program.
As
> most of you know, Dennis has used, at least in part, trend following
systems
> since the 1970s. While they can make tremendous profits under the right
> conditions, they can be hard to stomach under the wrong conditions -
> unfortunately, for Dennis and many managed futures programs, the year 2000
> has been a particularly difficult time.
>
> Remember, it is never enough to test a trading system, see a 30% drawdown
and
> say "well, that's not too bad - I can handle that." Make sure you can
handle
> that if you're in the drawdown for 6 months to a year, and you're required
to
> continue to put trades in, day after day, with the result of most trades
> being losers. That will happen with EVERY TRADING SYSTEM at some point
> (although the drawdown duration will differ) - do you have the stomach to
> endure?
>
> Make absolutely sure you can say "yes" before you put a cent into any
trading
> system and start trading. Just my two cents.
>
> Michael Strupp
> Chicago IL
>
>
>
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