Imagine this... 21% drawdown on just one trade, after doubling down time and time again to try an salvage the bad trade, rather than setting a stop (e.g., 5%), taking your losses, and starting a new trade. The net result of this purely Martingale strategy - a $70,841 loss on one trade alone! The only reason this person's strategy is still alive is because he's hyper-extending his leverage while doubling down on losing bets, then utilizing a pray-and-wait approach in hopes of a bounce-back. Though he makes money (so far), the risk is too great and the technique (Martingale) proven to result in disaster eventually.
Seen 1-2% difference between model and actual entry/exit on each side lately. So gains are much smaller and losses bigger than 50% of model. not sure if it is IB, the delays of C2 or intentional.
A talented trader, started well, but failed because of no risk control.
"Those who fail to use stops eventually stop trading. You can't drive a car without breaks and not crash... it's inevitable." --Mark Minervini
Despite appearances and track record, this strategy is reckless and employs Martingale techniques to turn losers into winners... sometimes employing extremely high leverage and exposure. Rather than cutting losses and entering at a more favorable point later, the strategy simply "doubles down" multiple times, then waits for mean reversion. It will also enter a trade (a short on UVXY) on a Friday with no stop-loss, exposing the position through the weekend (and night market) to economic uncertainty. The developer is unresponsive when your question involves a losing trade.
Looks like a decent low vol strategy. However I experienced a long string of losses as soon as I joined. Also some positions were left "hanging" with 1 or 2 shares, suggesting that a human wasn't in the loop. When I tried to start a dialog, the strategy owner didn't respond. Fair enough though, investors don't necessarily need to be hand-held.
The system is a consistent, disciplined, trend following system with very good returns. The system is low risk while still acquiring growth stocks with high potential returns. Danny is a gifted trader!
The system is a consistent, disciplined, trend following system with very good returns. The system is low risk while still acquiring growth stocks with high potential returns. Danny is a gifted trader!