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SiamFX "Redemption" Question For Nick

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  • #46
    Originally posted by siamfx View Post
    Minimum Investment Explained
    Risk Multiplier of 1.0 requires $5,000
    Risk Multiplier of 0.5 requires $10,000
    Risk Multiplier of 0.25 requires $20,000
    Risk Multiplier of 0.10 requires $50,000
    Thanks for the response.

    May I seek further clarification on the planned change to $50,000 maximum (??) balance in 2015? If I understand correctly, there's a cap now at $100,000 which will be halved to $50,000 in 2015.

    Does that mean, since I'm planning to run this (if I join) at 0.10 risk, I won't be able to do so from 2015 onwards since the minimum balance required is right smack at $50,000?


    • #47
      I would like to allow up to $500,000 if the follower is running 0.1 RM because that would equal the same lotsize as a follower using $50,000 running 1.0 RM.
      I'll talk to Nick to see what can be adjusted in the backend of SimpleTrader TradeCopier.
      If there isn't a solution, I'll leave the cap at $100,000 to allow followers plenty of room to use 0.1RM.


      • #48
        I don't see how SimpleTrader backend has to do with this? If your trading strategy calls for $5,000 per 0.01, then it's just simple math as per your earlier explanation, isn't it?

        Yes leaving the cap at $100,000 would be beneficial, to you too. Not to rub salt into your wound, you've left many people pissed off and disappointed. Those who are willing to give you a second chance (me inclusive) would only do so at reduced risk (at first, at the very least).

        With all due respect I still think your trading is super high risk. But I'm willing to "gamble" 0.10 of my account that it has a chance of recouping that 0.10 investment in a matter of months. Once I pull out all of 0.10 profits (and subscription fees), I can rest easy.


        • #49
          When larger lotsizes are used by the followers, it increases slippage for everyone. I don't want followers to experience problems with slippage because most traders here use the same retail brokers. By putting a capital restriction in respect to the lotsize being traded, I can control this issue.

          I can't put a cap on the Max lotsize as a solution because of my manual scalping and if hedging if needed. Therefore capping the Risk Capital was a viable solution to handle this issue.


          • #50
            It's nice to know you gave some thoughts with regards to slippage etc.

            Could you kindly update me/us with regards to your 2015 max balance cap decision, as soon as you've made the decision, thanks!


            • #51
              What's your plan now, Primary Trader?

              I'm not saying "I told you so" but earlier I asked "could you dial down the risk on your end", precisely because of what has happened recently. It's no use dialling down the risk on OUR end if the outcome is going to be bust. 0.10 x bust = bust.

              However, if you could only dial down the risk on your end to prevent bust, then maybe there's something to consider...

              PS: I don't mean to allude your account will bust soon. Just trying to make my point.


              • #52
                CONGRATULATIONS! After blowing another account again, your myfxbook "user" SiamFXNET doesn't exist anymore... Where's all that verbiage now? You're just one BIG-MOUTHED charlatan, a COMPLETE JOKE who should be ashamed of himself...

                Originally posted by siamfx View Post

                Drawdown Explanation

                Myfxbook calculates the drawdown as following ( Account Balance - Equity / AccountBalance = Percentage of drawdown in Account). For example, 10000 Balance - 9000 Equity = $1000 drawdown / 10000AccountBalance = 0.10 = 10% Drawdown. It's straight forward and accurate to measure open drawdown. My account experienced a 65% DD based on this figure, however I look at drawdown percentages differently.

                I base my drawdown solely on equity to give me an accurate gauge of my drawdown situation instead of using the account balance. I do this because my account balance is always growing from activity trading ( my recovery strategy, Manual Scalping). This added trading activity pushes my account balance higher, while the equity may stay stay flat, go down or slightly go up. As a trader, our lifeline is our Equity because if you close all open positions, you will always end up at the Equity Level, thus this proves that Account Balance has no relevance to the actual account. The next life line for a trader is the Free Margin, and this will vary from broker to broker because of the different proposed Leverage that the broker offers. FreeMargin and the Equity of your account are the only indicators to display the Health of your account. Account Balance doesn't matter until you have zero open positions.

                When I start trading, I look at the equity level of the previous month and base my drawdown percentages based on this amount. Why? Some traders bank a few pips during the day and use these pips as a cushion for further trades that day, this allows them to risk more ( increasing the stoploss if they choose, or increase their position size, etc because they have banked profit and use this as a cushion.). I do the same but use the previous months profits as my cushion.

                In the image above, I started My cushion Level based on October 1st, 2014 ( Blue Line) and base my drawdown percentages off this because a month is a relatively small amount of time when you look at the annual return on investment(AROI). I'm willing to risk more if the previous month was profitable ( I'm willing to give this back essentially) and less concerned about drawdown percentages. If my Account Equity was at 80k in October, and now it is at 45k I'm looking at my account as if I have a 43% drawdown and not what it recorded on Myfxbook because I don't consider the account balance as being relevant. Therefore, Myfxbook will always record a higher DD% than what really matters.

                Please remember this only applies to my system because my account balance is always growing. Not many systems can do this, just for example Caesar and dayfox (both systems that use Averaging) don't increase the Account Balance during cycles of drawdown because the whole basket of trades are normally held open until closed at a profit, breakeven, or lose.

                In the image above, the Red Box displays how much my account balance has grown since High Water Mark Equity (Black Line) The blue box is the Equity Drawdown from the previous months Equity(Blue Line). The Blue line and blue box are what I focus on during trading. I don't focus on the recorded myfxbook drawdown percentages.

                Currently, as of November 12, 2014 , SiamFX Aggressive are at a new High Water Mark Equity. This means the algos are on, and I'm off!
                My manual trading recovered the drawdown and I'll be working on algo development tomorrow.
                Best luck to your investment decisions.


                • #53
                  He is an expert in blowing


                  • #54
                    A true Master in manipulating the truth