Lesson 2 Chapter 1
IMPORTANT STUFF…please read. Different than the combine we completed in January 2015 (where I started with 4+ contracts per trade), I completed this combine by starting with only 2 contracts. Let that sink in…we hit the combine objective in 9 days, trading 2 contracts with an average losing trade of 9.4 ticks per contract. With 2 contracts that is a risk of $184 on a $150,000 account or .123% of the account.
Summary: With this modified approach, we reduced the front end risk, scaled into the winners and let those winning trades run to the targets. Yes, there will be no more $41,000 10 day runs with this strategy, but there will be no big reversions to the mean either….make sense?
Here is the “official” screenshot from the TopstepTrader website.
Why Do I Continue to Post Combines?
Posting Performance Results is Bull Sh…
Ok, I am sure I have your attention at this point.
I am often asked about posting performance results on the website..and I have had a policy in the past of not posting results. Let me explain.
Anyone with a copy of photoshop, Microsoft Excel, Microsoft Word and an hour of time can create any type of trading statement or performance numbers you require. I am often amused by the emails that I receive that say “Trading System has 95% Accuracy” or “We are up $5,000 in 3 days!!”. All of this garbage comes to you in the form of an email, Excel Spreadsheet or Word generated PDF.
Truly, what is the point?
Since, there is no ability to validate anything that anyone says to you, short of independently logging into their personal trading account and viewing the information for yourself, I don’t see the value in trading statements…or even online testimonials for that matter. Again, tell me what you want to see, I’m sure there are some creative folks out there who can accommodate your needs.
What I Do Doesn’t Matter…Only what YOU do Matters.
Ok, I am about to run afoul of you again here…I can feel it.
What do I mean?
I talk to so many traders who say “I caught all the losers and none of the winners”. Oh and by the way, the reasons are as funny as they are endless. “I had to go to the bathroom”, “the delivery guy needed my signature”, “my cat ran across my keyboard and knocked me offline”. (not kidding by the way…that is a real story I heard)….blah blah blah…you get the picture, right?
But more times than not, someone has seen me take 2 or 3 losing trades in a row and remember I am winning less than 50% of my trades with this new approach. As a result they don’t have the confidence or understanding of the program to take the next trade…and VOILA…the next trade is the winner (and our winning trades are averaging about 3 times our losing trades) that gets us out of the hole and into profit for the day.
So, let me break it down in the simplest of terms…I may be up and winning and you are down for the day. Hence the statement, “What I do doesn’t matter…only what YOU do matters…”
Ok, back to the question…Why do I continue to post combines?
A majority of traders are underfunded
Being underfunded in any business is a key reason why most businesses fail. And trading, more than any other business, requires proper capitalization in order to be successful.
I go through TopstepTrader combines to show you that by using the tools and methodology we teach (not just the “go long / go short” signals) you can have an opportunity to trade a fully funded account with little to no personal risk to you.
TopstepTrader is a Legitimate Opportunity
There was a fairly extensive, independent review completed on TopstepTrader by Emmett Moore at TradingSchools.org. Emmett is an acquired taste, but his reviews are brutally honest (at least as he sees the world) and he is adept at doing his homework.
Transparent Performance Results
The final reason that I continue to complete TopstepTrader Combines is that they are an independent, 3rd party verification source for performance results. Before you bash me here, yes, it is simulated performance and I get that. But in the end, with the exception of some slippage issues, you are getting a decent idea of how you can perform in a live market.
So, what do I mean by independent verification? Well, simply put they have a uniform webpage where I can download and post daily screenshots of my performance.
Oh, I get it, you think I can photoshop and fake those results as well. Yes,you are correct, I could.
So, I have taken it a step further, I have posted the live trade by trade performance “widget” in the top right hand corner of the screen I share, every day in the daily chat room. In real time you can see EXACTLY how I am performing during the day. This is a sample of what I am referring to.
This widget is running live at all tines during the combine.. And your final bit of evidence as “proof of authenticity” is that you can go back and review the “Trade of the Day” videos that are posted and you can compare those final results on the “widget” you see in the video to the final “results” screenshot you see published every day..
Ok, if that is not transparent enough for you….then it never will be.
We will continue to periodically do these combines and provide video evidence in the form of “trade of the day” videos. We truly appreciate your support and your continued interest in what we do.
The Oil Trading Group. (“OTG”) does not hold itself out as a Commodity Trading Advisor (“CTA”). Given this representation, all information and material provided by OTG is for educational purposes only and should not be considered specific investment advice.
Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones' financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not indicative of future results.