Even Crazier: The Maximum drawdown on this Multi-Thousand Percent Gain would have been Negligible in Comparison!
A system that could care less about economic news, presidential elections, interest rates or the Federal Reserve as it strives to churn out daily profits. Of course, like any trading system, it could also incur losses, but you’re going to love this! Read on…
Over the next few minutes, I am going to show you a trading solution that is designed to do two incredible things:
But when you understand what we’ve developed, you’ll have no choice but to agree with me.
Shouldn’t it be possible to combine lots of systems in order to create one potentially extremely profitable, consistent and reliable system?
See, the standard rule in trading is “If you want to make more you have to risk more” and that makes perfect sense…
You know, the boring ones that your friends use that could return 5 to 8 percent per year and almost never have significant downturns.
That kind of ROI is of no interest to a trader… But why can’t we combine a whole bunch of these systems?
If 5 different systems make 5-8 percent each and you trade them all at once, shouldn’t you make 25-40 percent with virtually the same risk on each component?
In fact, shouldn’t your risk actually be lower because, in the rare instance that one system loses, you might be trading 4 others to make up for it?
If 10 systems would total 72 percent annually, that means they’d average about 6 percent per month.
But when running all together it’s hypothetically possible to compound the gains each month which can then be far more profitable.
Not only that, but with that amount of stability and all the systems trading all the time, there might have winning trades virtually every day! Of course you could have losing trades as well as this is part of trading. However the idea is to have enough trades to where the losses become relatively insignificant in light of the gains.
If one system had a bad week or a bad month, there would be 9 other systems that could eliminate your losses and smooth out your gains!
That’s why the only systems that can actually achieve what we’re talking about are hedge funds…
When the stock market goes down or surprising news comes out, the entire fund can still take massive hits.
Even in this hedge fund atmosphere…with hundreds of expert, full time traders… and with billions of dollars… the gains are not as big as we’d like and the protection is limited.
In my opinion, the first key is that each strategy needs to be completely independent (I’ll explain a bit more about this in a moment…)
And, more importantly, a trader needs to be able to use the same funds for all the different systems.
With a typical hedge fund set up, there would be an “allotment” for each strategy or trader,
$10 Million for Bob who is focusing on small cap stocks, $20 Million for Ted who is trading in the energy sector…
But if you have $5,000 in your account, for instance, and you can use the same $5K for each strategy, you have a LOT more profit potential than having to split it up into a few hundred dollars for the AUD/USD and a few hundred for the CAD/JPY, etc.
We use this in the Forex Market and we can have one account with multiple strategies…
