Why control risks. Really….

По мотивам этого:

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These are the results of two famous managers in their circles, which they showed at the Russian Championships in Investing LPI 2014. It can be seen that their risks are not controlled in any way.. Hope at random, the fact that the price will still come back sometime. That is, the feet are not recognized., at all.

Yes, I agree, stops are sometimes very harmful to trading systems. It happens that a system without stops earns, but as soon as you apply feet in it, it immediately becomes unprofitable. When there is a saw in the markets and the price goes back and forth, why at all, feet. After all, the price will return anyway. Especially when it goes on for several years in a row. It's easy to make money without stops. I must add that it is easy to make money only during such a period., when the price comes back. When this period ends, luck ends too.

Вчера во время ужина просмотрел недавнее video В.Олейника с А.Верниковым. Vasya did not understand the reason for his failure. He claims there that sooner or later any speculator will drain. Earns a year-two-third, and then it will merge anyway. So I didn't understand the reason.

For example, create a system, which enters a trade when an event occurs and closes in positive territory with a small profit. If the price immediately goes negative, then we just wait when it comes out in a plus. The blue line shows the balance of the system — that is, closed deals. Naturally, ALL trades are profitable. Several times there were relatively large drawdowns, but the price always came back and the deals were closed in a plus.

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But in the fifth year of successful trading, a catastrophe occurred and the price simply did not return corny and all the profit, earned in five years evaporated in about a month or two.

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So that, Sooner or later, fighting the market without room for error ALWAYS ends with this catastrophic error.

  New trend?

They, who do not have programs for testing on historical data, they cannot simulate such situations and must learn from their real mistakes. Also learn from their mistakes and those, who believe that situations never repeat themselves and it makes no sense to model checks on historical data. Although, maybe, they just feel sorry for the money on WealthLab, which has risen in price and now costs 33 000 rubles. Well what, wait until the price rises to 70 000. :)

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