Comment on Mr Consistent returning incredible returns

Madan commented on 24 Dec 2013, 06:27 PM

1. TF is just somebody’s comfort. I don’t want to sound like a cliche but as you know Lower TF = more no. of trades & higher TFs = lesser trades. Whipsaws are independent of the TFs as it all depends on the SL right?..think about it.

I know somebody might be thinking 1 min will give more whipsaws than daily TF..it looks like that as you have more no. of trades on 1 min than daily timeframe…but, we should see the %age of trades that are getting whipsawed and guess what, it would be the same between 1min and 1 day over a period of 3 yrs or more.

2. Well, it depends on the market..as i said in the interview, i take what mkt gives..i had two consecutive -ve months in 2013 and i lost 4% and 5.2% respectively off my account size i had on January 1.

I also don’t believe in aggressively increasing the position size when my acct size increases..as a matter of fact, i have increased lot size only once this calendar year..most of us think it is easy to increase lot size when the acct grows but its easier said than done. I have personally seen traders who perform well with small acct like 1L but cannot perform in the same intensity when their acct size is 1C…lot of psychological things are into play here.

When the acct size is 1L, you can afford to lose the account and fund it again..there is no ‘fear of losing’. But, when the acct size is 1C, fear of losing is extremely high as its big amount….i can guarantee you today that most of us would not be able to scale up the way we want as we are all wired with the primitive insitinct of ‘fear of losing’ .. that does not mean that we can’t do it but it is just not easy as we think it is.

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