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Poll on users of Simons lazy system

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Not applicable
that surely was a small correction, but in the next two weeks, the correction we going to see going thru sept. is going to be really really harsh..
0 Kudos
Not applicable
my bet is we should see the DOW top at 9625, and head south thereafter, prob a 15% correction..
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Maggie
Super Contributor
Sorry for the blonde question. What is Simons lazy system?
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Not applicable
Anybody care to inform me about what exactly is simons lazy system
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topgun
Super Contributor
If you are bullish on the index movement between now and year end, why not just buy a Dec SSF on the STX40 and sit back without the worry of time decay, barriers and limited liquidity in the warrants?
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Cherry
Regular Contributor
Simon, what is your lazy system, geez, I've been out of touch. This stop loss of 2% really baffles me. Does this apply to warrants?
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SimonPB
Valued Contributor
2% is not the stop loss, tis the capital at risk .. google elder +2% rule ..
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SimonPB
Valued Contributor
coz liquidity is warrants is as much an issue as with SSF, in other words the market maker ensure they are as liquid as the underlying .. barrier is not an issue as it is way far away an if one is still holding at barrier then one is trading like a #### .. time decay, yip .. less aggressive with barrier warrants and linear .. to my mind that is then off set by the larger risk within the SSF in the event of a black swan event ..
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Not applicable
What is simons lazy system. I would love to know?
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of
Frequent Contributor
Can someone please explain "Simons lazy system"
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Not applicable
I love Simon's system dearly, but as in all trend-following systems, the only black swan is a prolonged sideways market that causes consecutive stop-outs. The trick is to figure out how many stops in a row you can take and still survive. So combining it with some elementary charting (to wait for breakouts from channels) seems to be the way to go.
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SimonPB
Valued Contributor
yip .. but 2% rule means I'll never run out of capital .. and eventually the trend returns ..
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Not applicable
Bottom line. Have enough money in your portfolio to ensure the relatively small positions you're forced to take aren't overshadowed by brokerage costs.
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topgun
Super Contributor
which also eliminates the possibility of subjective interpretation of volatility by the market maker in option pricing. Derivatives such as SSF's can also be used by investors as opposed to traders with a typically longer time horison. Risk and black swans are omnipresent...but with different probabilities across the cycle, depending on the level of risk-free rates, absolute earnings and asset returns, valuations etc.
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Not applicable
Where can I get more money for my portfolio?
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Not applicable
To put around R20k into a trade (incl fees) with a stop loss of 10% according to Elder you need to have at least R100k in your trading account? And you can only expose R60k at any time, from the 6% rule (3 trades of R20k)? Problem is we start with a small amount but dream for millions to come which means increasing our risk and drastically lowering our chance of survival.
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SimonPB
Valued Contributor
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SimonPB
Valued Contributor
your grasp of the 6% rule not spot on .. as trades move to were the potential loss is less thent he initial it frees up some of that 6% rule cash .. an as for the R100k - yip, me thinks that that's the min portfolio size for a successful trader ..
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Not applicable
correction noted, i should substitute "at any time" with "initially". I was trying to simplfy it.
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SimonPB
Valued Contributor
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