Interesting read on BeatTheMkt's Covester account.
If someone is going to teach you to trade, or you are going to invest in their fund, they should know the answers to these questions.
1) What is the accuracy of profitable trades for the system?
2) What is the average profit per trade for the system?
3) What is the average loss per trade for the system?
4) What is the average, largest drawdown in a win or loss?
5) What is the most consecutive wins and losses?
6) Can two people interpet the methods differently?
I've read a lot about hedge funds, and I have never heard of this being discussed. Granted I don't have a few million to throw into a fund, and these are all serious investor related questions, with hedge funds collapsing like Amy Winehouse after every overdosed stage performace, these are important statistics!
I've had huge gains since I started trading about one month ago. I need to digest it and not become one of the 90% of traders that lose money. When I spoke with one of my serious trading partners, Ben, yesterday he advised that I sit out of trading to digest my gains. My gains recently have been very very large in terms of percentages and getting cocky in these markets... well... you can easily be humbled. For my niche, there's an extent of luck in each trade. Its very volatile, its dangerous. You stand to lose it all. Being up 32%, is a big deal. I'm more cautious about losing gains than principal, so you can bet this little hobby of mine has become that much more serious.
This summer, I used to read all of Timothy Sykes's testimonials and just imagine the numbers and figures he'd throw around. People would make $200,$500, $1000 plus everyday. It's hard to digest that I've become one of those people.
COVESTOR NOTES
I just wanted to clarify some notes on my covestor account. The covestor account shows %returns from an initial account valued at $4736.99. The returns, therefore, are skewed. My actual starting account size is $4900.
