No I cannot. I am not the trader.
Did you receive a return yet?
Returns are monthly 3% but I will be getting 4% so in 2 weeks time.
I have cellphone contact with him everyday.
We went past the $8000 mark today and shooting for $10,000
That would make it 1% of the way to $1 million.
I did have a very long conversation and it seems that this has very similar characteristics to the very secretive Prime Bank Roll Programs except that he is doing it on a very much smaller scale.
I cannot reveal details, this is the non-disclosure agreement I have with him but he did show me the listing of all his positions in the market.
He is ALWAYS positioned in the market, several positions in fact so he is never out of the market.
I saw more than 20 positions of which only 2 were not in profit so everyday he could just select one profitable trade to close out and [B]ROLL[/B] another trade in… sweet
By selecting only profitable trades to close out and roll, he can show 100% win rate.
To me, that sounds like a terrible approach to trading.
For a terrible approach, it is getting [B]fantastic[/B] results.
For the time being.
Correct you are, of course.
I am sorry…but this has been bugging me for a while now and I cannot get to grips around it.
Can you explain to me why it is a terrible approach to be trading with 20 positions of which 18 are profitable ?
I have been tossing this about for quite a while and cannot see the logic so if you can…please share with me your wisdom.
Ok, what’s your total percentage exposure?
My exposure or his portfolio exposure?
My total exposure would be $1000 as that is what I have placed and will be increasing to $5000
His portfolio exposure is zero or very close to zero because it is arbitraged.
no, it is not realistic.
What a laugh, I’m sorry I can’t take this seriously.
Even if it was a [B]ROLL[/B] program ??
Ok. you don’t know what is an arbitrage then.
I have no idea, would you care to explain.
Ok…check in any financial dictionary.
Wikipedia says…
In economics and finance, arbitrage (IPA: /ˈɑrbɨtrɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit at zero cost.
you have an example of 1 of his arbitrages?
Arbitrage is exposed to risk as well as it is based on correlations usually and these don;t always play out as expected.
If you have good knowledge of stocks and takeover bids you can do some good arbitrage trades but in FX it’s not that simple.
Can you give me an example of a case where an arbitrage will not work out as expected.
I think you’ve mistaken an arbitrage transaction for an arbitrage trade.