Clarification
The author (old pro) of this, saw the comments for that post, and responded:
I really enjoyed some of the comments on my post. Some of the guys are right on. The manager I referred to is a very disciplined trend follower who has a rule based system he follows religiously. The losses took five weeks not two days. A large % of the losses were incurred via being short the financials which were in fact in clear and well defined downtrends prior to the so-called intervention. It is obvious from some of the comments that all contributors are not traders but rather observers and there is nothing wrong with that. But I will pass the comments along to my friend. He has averaged a net return of 24% per year the last five years following his rules.
Matt - Trading System Reviews Added:
September 24th, 2008 at 8:38 pm
I’ve just posted a reply to the previous post saying something similar….but in a far more verbose manner!
Ladi Added:
September 25th, 2008 at 7:07 am
I’ll like to know how many “financials” he had in his portfolio, and to what ratio was that to the rest of his portfolio.
Ken - Todays Breakout Stocks Added:
September 25th, 2008 at 3:13 pm
I’d like to know what was the risk/reward ratio and standard deviation (and number of events used to calculate the sd) of the trade before he placed it? I’d also like to know why he was using such tight stops? I can’t imagine anyone using anything less than 50% retracement stops on average if they are shorting financials in this environment.