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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures

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To: Tom Trader who wrote (39595)	10/29/1999 11:43:00 AM
From: Chip McVickar	Read Replies (1) of 44573

Tom, As the contest is set up it encourages participants to Max-out equity balance to keep up with the leaders and smash the glass ceiling if you have the ability. Isn't that the nature of contests and competitive contestants? <<smile>> And there is of course the all expenses paid trip to Mrytle Beach....where is that in Florida anyway? If the greater intent is to reflect live trading, and I believe this was the intention, then money management must be apart of the rules. Perhaps restrictions could be placed requiring a certain percentage of daily equity base be maintained in the account. Example: Start $250,000 maintain 50% -- tradable 50% New balance $200,000 maintain 35% -- tradable 65% New Balance $325,000 maintain 65% -- tradable 35% Something along these lines...? I don't know....there are pro's and cons. Another way, require a certain percentage be removed after reaching some predetermined amount. However, I know that my trading style is exactly the way I would trade if my live account were $250,000 dollars....Except....Instead of 10 contracts I trade 30 to break the glass. Trading 30 contracts yesterday was margin of $375,000. Trading 20 contacts over night was $500,000 margin. Not something likely to occur with a live account of $461,000. This is creating a mental perception of very aggressive and dangerous money management for a Live account. With a live account my success would require money management and would suggest the removal of about 50% or 75% of profits at some point. With $461,000 [10/28] I would be removing atleast $100,000(50% of gain) from the active account for a cash reserve. Leaving about $361,000 to trade. It would probably be even more? Maybe when the Oct leg of the contest is complete an adjustment could be made. I hope the strong professional traders like Pat and GZ would stay with the contest? They are an important part of this excellent "contest" put together by you and David. Chip

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