As one other review indicated, the sizing of the position was not well explained. One other time there were 3 loses in a row. After I joined the first 3 trades were loses. The model never had more than 2 losses in a row before I joined. I participated for 3 months, and over the course of the time there were 10 trades. Overall the returns don't justify the risks taken, and risk goes up significantly in choppy trading, causing net negative returns over a period of several months fo me. Entry timing could also be improved, trader often jumps in right in the middle of a steep move, could wait until there is at least a sign of a change in direction. After several months of trading my return on this strategy was negative because the few high loss trades more than wiped out the trickle of positive returns on the much less leveraged successful trades. Stop margins are far too wide to contain this risk.
#Collective full
However, sometimes it's not a brief deviation but a full new trend, and then the strategy of adding leverage after initial losses really backfires, leading to large losses on a few trades. Again that works if we get mean reversion within the normal time frame for a trade (up to a few days here).
Trader tends to double down on initial losses like a Martingale, leading to higher risk and drawdowns on bets in the wrong direction. Trader seems to mostly bet on mean reversion after strong swings, which works well most of the time since that's the more common pattern. Quite an active strategy, rarely a quiet day, which is nice. Read the entire review Collapse this review
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