Quote:
Originally Posted by tdion
I'm sorry. As much as I enjoy this thread (it has been a good read for about 6 months) I have to call BS on anyone claiming that risk is impossible.
Yes, you can preserve capital by using smaller lot sizes (position sizes) after each loss. But a loss is a loss. Holding on to losers can wipe you out, while cutting losses early still nickle and dimes you.
I want to say that I thoroughly enjoy Bill's intellectual descriptions of what he does. The metaphores and analogies are refreshing, and do a nice job of conveying concepts.
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Hi tdion,
You are correct that there is always risk of loss if we are talking about just Forex alone. I'm sorry, I didn't explain myself fully. No matter what is done with trading alone, risk remains. I absolutely agree with you. I spend a lot of my time finding the weaknesses in different trading systems. (If I can't find them, I test the strategy with real money. Usually the weakness will then show up really quick...
)
But, the capital preservation structure I have set up will use a combination of several elements including Federal tax credits, a wind farm energy facility, government bonds, and two Forex trading teams with completely different approaches.
With this structure both Forex teams could actually lose their entire trading accounts and the company will still maintain capital preservation for the investors. Actually, there should be at least a gain of almost 20% in two years even with a complete loss of the trading accounts the way I have structured the company. It will be launched and begin looking for funding starting this weekend.
Take care,
Bill
