Comment on Mr Consistent returning incredible returns

Dharan commented on 08 Mar 2014, 10:19 PM

first of all what madan has achieved is commendable…..for the account size he handles, getting this return in great. But there are many things which no retail trader is going to understand. If you break up his performance, then many will start cursing him, and will leave him all alone.

As per his system, his drawdown is maximum 30% and average 15%, he has clearly mentioned that he uses approx 1 lakh capital per lot, so to get a 15% draw down he will make a loss of 300 points before his equity curve turns back. Now this is not acceptable for retail traders, they want 80% accuracy, not 45%.

As A.E said compounding is the 8 wonder of this world, to get his performance of 300% return per annum, its enough if you get just 125 points per month, and keep on increasing the lot size accordingly every month. 125 points per month, is not at all attractive for a retail guy who is looking to get everyday 50 points, so his target for 22 trading days is more than 1000 points, where as madan has reach this 1000 points in 6 months time. So he is consistent, patient, and knows how to handle big money, and last but not least how to handle losses, because 55% of his trades get stopped out, 80 percent of the people lose out in this last point, they cant handle the loss, and press the self destructive button.

so what he achieved is great, but when you break it up into pieces, it just normal and simple stuff, but we all fail to do the simple stuff, and complicate it beyond our reach.

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