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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (12283)	1/10/1999 10:56:00 AM
From: jjs_ynot	Read Replies (1) \| Respond to of 44573

From what I have been able to gather, two fo the big issues that brought down LTCM. 1) Excesive use of leverage as you describe. 2) Lack of a well defined exit point and exit strategy to get out of their positions. It is not clear that they were still acting in accordance with their models at the end. They didn't have a good way to unwind these HUGE postions.

To: robert b furman who wrote (12283)	1/10/1999 2:07:00 PM
From: Stoctrash	Read Replies (1) \| Respond to of 44573

Robert, I agree...but the fact that they were so STUPID to OVER leverage themselves shows the fact that they DID NOT have a system. Where were their stops? Why didn't they think about liquidity? Another thing I want to point out is that this thread(IMO) is not about the Holy Grail...we know, you know that one MOST likely doesn't exist. Heck, I've thought I'd found it 4 or 5 times by now over the past 6+ years and I'm done searching for it!!! IMO, I just want to make some dough with out blowing up & keep the drawdowns small so I can sleep at night. I think there are VERY few people like Pat (even he has a pattern type system) that can go seat of the pants. If you can swing it....then more power to ya!!! I hope you can share with us some of your insights on what makes you sell this or buy that...as even though "we're" not attacking it from the same angle doesn't mean we can't learn something from one another... happpy trading..