02 ts lc
- 2. INDEX 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 2
- 3. TS Stable Risk – What is it? Changes in the risk an investor can expect from your strategy (Can you convince an investor that you’ll manage his risk as promised?) 1 The single most important element of the TS Challenge 2 The core skill required to manage investors’ money 3 The RISK part of your RISK / RETURN proposition to investors 3
- 4. INDEX 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 4
- 5. Gráfico de martingala antes de castaña The sky is the limit? 5
- 6. Gráfico de martingalatrascastaña Where did it all go wrong?? 6
- 7. Introducing… the martingale An attractive illusion… But keep your money AWAY from it! • An age old trick • Heads = Win, Tail = Lose • Head -> bet, tail -> double the bets • Guaranteed to win WITH ENDLESS FUNDS (not in this world !!) • Looks promising!! • Attractive returns • Low initial risk • Seemingly constant (but actually random) risk profile • But it’s TOXIC to investors • When losses hit… • Capital suddenly implodes • With NO prior warning 7
- 8. An appeal from Independent Traders’ nation Martingales that burn investors… Steal YOUR credibility as a trader • Martingales undermine our collective aspiration to manage investor capital • An investor deceived by ILLUSION • Will NEVER trust a trader again • Will speak out against ALL traders • What CAN you do? • NEVER replicate a martingale • If in doubt, demand your signal provider for his TS Score • Expose this fraud for what it is, wherever you come across one 8
- 9. INDEX 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO SPOT A MARTINGALE? 4. QUESTIONS? 9
- 10. How to spot a martingale? Martingales come in many different flavours But all share one or several of the following 1 Many trades on the same or correlated assets open simultaneously 2 Impressively smooth path upwards 3 Look for past losses: if risk was increased following losses, STAY AWAY!!! 10
- 11. INDEX 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. GROWING YOUR TS PERIODS? 4. QUESTIONS? 11
- 12. Where to go from here? • http://en.wikipedia.org/wiki/Martingale_(betting_system) • You may want to check what a TS position is, as well as TS STABLE RISK element • This article is a stub - Feel like you can improve it? – GREAT! • Feel free to post your questions to the TS wiki – we’ll incorporate them by improving its content or on our FAQ • Have suggestions? juan.colon@tradeslide.com can’t wait to hear them • We’d love to credit you for improvements • Contributing to the Q&A sections will boost your mentor score if others like what you post (even questions do!) – helping out will reflect on your community standing 12