@ftirecovers
chief, i am trading in my country's commodity future markets right now. i was introduced many years by a commodity futures trader. he is actually following a mean reverting system without knowing the name.
so fundamentally if $40 is a support for US Oil and if price is trading below that and if hints of an uptrend show up, he goes long. keeps building equal lot size position all the way down and tries scalping as much as possible. however, if volatility shoots up, his positions go into deep waters with this method, so he takes away some of the exposure by booking loss.
he is managing many people's money this way by offering a fixed ROI of 5% per month. All the remaining is his commission. i have lost contact with him for many years before and have recently entrusted with my borrowed capital (lower interest) to him. part of the capital is kept in my trading account and i saw him doing this MO with all contracts were closed in green. Just as there was about 2-3 days for payout, all the capital was lost, due to counter volatility. so in my case and many other case, as a gentleman agreement he needs to replenish the capital if lost and pay interest as well. Assuming he spent all his hard earned money and he is a bankrupt, he has to finance the account (by pumping in margin money to keep leveraged positions) from financial institutions. for me this looks dangerous and i have asked him to return the capital.
myself have got a decent return of 6% per month on average by trading on a demo account with the methods learnt from you. due to my country restrictions i cannot trade FOREX, so i am sticking to my country commodity exchange market. can you please provide your valuable inputs on adjustments to make, precautions to take and pitfalls in this kind of markets
chief, i am trading in my country's commodity future markets right now. i was introduced many years by a commodity futures trader. he is actually following a mean reverting system without knowing the name.
so fundamentally if $40 is a support for US Oil and if price is trading below that and if hints of an uptrend show up, he goes long. keeps building equal lot size position all the way down and tries scalping as much as possible. however, if volatility shoots up, his positions go into deep waters with this method, so he takes away some of the exposure by booking loss.
he is managing many people's money this way by offering a fixed ROI of 5% per month. All the remaining is his commission. i have lost contact with him for many years before and have recently entrusted with my borrowed capital (lower interest) to him. part of the capital is kept in my trading account and i saw him doing this MO with all contracts were closed in green. Just as there was about 2-3 days for payout, all the capital was lost, due to counter volatility. so in my case and many other case, as a gentleman agreement he needs to replenish the capital if lost and pay interest as well. Assuming he spent all his hard earned money and he is a bankrupt, he has to finance the account (by pumping in margin money to keep leveraged positions) from financial institutions. for me this looks dangerous and i have asked him to return the capital.
myself have got a decent return of 6% per month on average by trading on a demo account with the methods learnt from you. due to my country restrictions i cannot trade FOREX, so i am sticking to my country commodity exchange market. can you please provide your valuable inputs on adjustments to make, precautions to take and pitfalls in this kind of markets