Wow Matt, good to see that system again. There was a hedge fund
you traded this system for some time back. I tried to sign on but
was messed around a bit. If I recall the fund was not allowed to
trade more than 15-20% of this "riskier" futures system.
yeah the regulatory these days is extreme. You have to have a
Series 3 license to be able to trade more than 10% of the account
with futures. And the 10% number was never clear to me what that
meant? my guess is that it's whatever the future contract controls,
so ES at 4369 x 50 = 218,450, which on a 5 million account only
allows you to hold a maximum 22 ES contracts, which would not work
on that FAN system. And again - while the scaleouts lower the risk
in most cases, it's not always the case if price doesn't bounce
intra day and you have solid back to back down candles - which is
why I said to really make that system where I'd be happy with the
risk is to have it also scale in like it scales out, vs scaling all
in on 1, 2, or 3 entries. The way I will approach it when I revisit
the systems to still have it scale in some shares on entries 1, 2,
and 3 but not all of them, so instead of entering 20 contracts on
the first or 2nd entry, have it enter 5, then look to buy the other
15 intra day on pullbacks lower than the main entry
Wow Matt, good to see
mean reversion systems update - no changes, none of the open systems looking to exit yet
Posted by mundy on 9th of Oct 2023 at 05:30 pm
Wow Matt, good to see that system again. There was a hedge fund you traded this system for some time back. I tried to sign on but was messed around a bit. If I recall the fund was not allowed to trade more than 15-20% of this "riskier" futures system.
yeah the regulatory these days
Posted by matt on 9th of Oct 2023 at 06:28 pm
yeah the regulatory these days is extreme. You have to have a Series 3 license to be able to trade more than 10% of the account with futures. And the 10% number was never clear to me what that meant? my guess is that it's whatever the future contract controls, so ES at 4369 x 50 = 218,450, which on a 5 million account only allows you to hold a maximum 22 ES contracts, which would not work on that FAN system. And again - while the scaleouts lower the risk in most cases, it's not always the case if price doesn't bounce intra day and you have solid back to back down candles - which is why I said to really make that system where I'd be happy with the risk is to have it also scale in like it scales out, vs scaling all in on 1, 2, or 3 entries. The way I will approach it when I revisit the systems to still have it scale in some shares on entries 1, 2, and 3 but not all of them, so instead of entering 20 contracts on the first or 2nd entry, have it enter 5, then look to buy the other 15 intra day on pullbacks lower than the main entry
I remember that too from
Posted by skwan1940 on 9th of Oct 2023 at 05:45 pm
I remember that too from years ago - just curious do you still trade for that hedge fund?