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mr_cassandra

03/21/08 7:41 AM

#17386 RE: kenwong #17385

Opinion on system fees. I think this is all relative. By that I mean one should take any system and net out the fees, see what return you now have (net) and then compare the results to how you have been doing on your own.

Main qqqq looks to have taken your 10K investment and turned it into $18,000 in 17 weeks.

17 weeks would mean you would have been billed $85 4 times.

You would have been charged $340 in order to make $8,000.

C2 shows a max drawdown of 10% on a system which delivered 80% in 17 weeks. I think acceptable drawdown needs to be looked at relative to what the system is getting you and the equity curve as well. Drawdown, imo, will go hand-in-hand with returns. By that I mean, the higher the returns you see, the higher a likely drawdown could be. Like with fees, you need to confront one crucial question: how am I doing net in pocket when all this is said and done, and how does it compare to my own results.

I'd like to offer my opinion that all systems need to be perspectivized in this manner and always compared to ones own results.

Its only 17 weeks and in the world of systems thats not much, but its a hellacious start.

If he continues at this pace, his subscribers could get wealthy very fast at a fee 2-3 times as high. All that matters is what ends up in YOUR wallet, net-net-net.

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fast_eddie

03/21/08 3:43 PM

#17388 RE: kenwong #17385

I tried the free trial period on Spy options...

I was trying to see if the signals would correlate well enough to trade the qqqq options on them, since those are the ones that I feel most comfortable with and have a minimal amount of slipage. You can buy them with a market order and not get burnt just because of the volume. If I recall correctly sometimes the SPY options signals were posted intraday, which would also be a problem at times. Anyway, to make a long story short, I dropped it, but not because of any problems with their system, just wasn't my cup of tee.

I've been subscribed to MVP and using it for my solo 401k (I'm self employed consultant). Dropped it for a couple months the other day because my out of town business (which is normally nothing) picked up significantly and I am also looking at back surgery on April 14th. Just put everything in cash until I can be sure of consistent time to access internet. I play the money machine on days that I'm free.

Good luck trading

Ed