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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (13211)	6/17/2001 11:39:56 AM
From: Dan Duchardt	Respond to of 18137

Ken, Conservative credit spreads is a strategy of interest to me, so I started looking through their trade history to see what they had been trading. The first thing that caught my eye was the monthly returns they claimed, averaging well above 50%. Now THAT got my attention.. $10K.. 50% per month compounded monthly.. 24 months... $168M.. play golf instead of sitting in front of the 'puter all day.. see the world.. buy a plane and fly myself all over the country... PINCH! Then I looked at how they calculated those monthly returns.. They seem to do 4 or more spreads each month, and each returns 10 - 20%.. so let's see 4 x 15% = 60%.. Somehow they also managed to never take a loss. Now if anybody can tell me how to never lose, and to use the same money 4 times to make 4 simultaneous trades, I'll figure out how to use it to do 100 at a time to make 1500% per month and turn my $10K into $10B in 5 months. I suppose the guaranteed 100% is calculated the same way they calculate their monthly returns. If so, it is a worthless guarantee. Nevertheless, even at 10% per month compounded you can make a lot of money in a relatively short time. The strategy is worthy of interest, even if these guys do have some problems with basic math. Dan