суббота, 17 октября 2015 г.

Look at the participants of public markets. They never recovered lessons. They are interested in the game.(с)


The title of today's article is best suited quote Donald T. Valentine, the famous venture investor, founder and director of Sequoia Capital.

What will be discussed and what the latest events were the reason for writing it?

The main "highlight" of the last two weeks for the participants selection for the transition to PrivateFX was cool "nosedive" Shine and HF PAMM-accounts. And immediately there was talk about ‘‘If "mindless" representatives of the Kvazar saw someone they offered ?! "worthy" accounts aren't selected, and "drain" are, etc.’’ Let'stry to sort out all of these allegations, as well as the reasons for the trading result in the mentionedaccounts. And not only that.

Firstly, let us remember the mission of Kvazar, which has been declared before all the selections: "The purpose of Kvazar is: creating the best website for communicating of investors, traders, brokers, and other persons and organizations, where everyone has their own interests and opportunities that are of interest to other members." Every journey begins with the first step, and we began the search for and selection of traders from the beginning - to collect and analyze information provided by applicants to cooperate in the project. Allocation of funds for management of the company FIBO Group showed that the declaration and implementation in practice of the Declaration of traders is very different. Statistics displayed in the first screenshot of the article, and at this point hasn't changed much - drawdawn GrowBuddy, Kayzer and RILAX, but they are still in the positive zone. The reopened account MorePositive left in a small minus. Of these 29 accounts 9 are the same "living", but only 5 in the positive zone. And what happened to those 20-th, which are closed? All control exceeded the agreed 30% drawdown. The main reason for this result - non-compliance risk (or ignorance?), stated in their declarations. How much do you think traders of these 20-th admitted and wrote a letter to the project? One! All the other went unnoticed. It turns out that the time- the most reliable filter sifting successful traders from the unsuccessful. Look at the results of the traders in the second stage, which received funds management and trading on demo accounts and went into the selection:

before


...and after



Observed drawdown accounts that in the positive zone. All accounts of the group shown in the competitive trading month decent results and passed the test of aptitude.

There is another group of applicants, which dropped out of sight in the previous review - merchants tradingin the personal accounts of real:



Note the marked bills: 1632150, 1633357 and 1632013. The first two account are noteworthy for new broker - in such settings drawdowns show such profitability. The third account holds several transactions which can move accounnt in positive territory after the close, but the drawdown has been considerable. There is another score, not in the shown rating, because fixed by the trader and on Monday he'll be of detached them from his own account, and attached to the Kvazar account - its yield more than 100% at less than 30% loss.

By studying the results of trading traders of these 3 groups, it became clear that the reasons for the loss of funds are different - and non-compliance PM and wrong signals - but there is another reason - Psychology. We cannot say that similar results will be shown in large amounts from 100k as up to amounts 1k? Psychological resistance leading traders manifested in situations where serious drawdown and the levels of drawdowns. We choose the dignity and discuss all the issues on the forum trueforex.biz.

Under the quote in the title: "Look at the participants of public markets" - we understand that theparticipants, it's not only traders but also investors. What are the lessons learned from each of the parties insituations observed in the accounts Shine and HF? Time will tell.

By investing should be taken seriously. As a result of the selection is not all take place in the new company.

To sum subtotal:

 - the main causes loss enchanting personal and PAMM accounts - failure to comply with the RM / MM, psychology and lack of experience managing money;

- Despite this, there are traders who's trading shows stability;

- Time - the best filter for Pamm-manager selection, but because we have little time to choose one of those who showgood results in a short time. Rather, these selected merchants will not show similar results, when will tradeon the PAMM-accounts of the new broker;

- each applicant has more time to show all what he can do - be a few transoms over the month until the end ofthe year. It is important also that the competition will be organized regular "Private-Star", due to whichthere will be new advanced controls (the terms of the contest will be announced later).

And finally ... According to some experts, analysts, traders super-investors, we all, or almost all, are doingwrong. May be it is so. But we - do.

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