100$ alone or 1000$ ten people?

Simon Gniadkowski 2013.10.28 22:23 #1

cheinvest:

Hey,

I'm wondering what you guy think about this. Is there any difference between a guy trading 100$ or 10 guys trading together 1000$ ( we presume that each one got into the pool with 100$). How can they get some leverage over the guy trading alone? Is there any way that in the forex world more people associated could have some advantage over the guy trading alone? Beside that 10 people ideas and analyses are better than 1 guy is there anything else they can achieve by working together and having a bigger budget?

If you are using fixed lots, no . . . if you are trading properly then yes, it's easier to find a trade that you can trade with a $1000 rather than $100.

Bacha Rehman 2013.10.28 22:47 #2

cheinvest:

Hey,

I'm wondering what you guy think about this. Is there any difference between a guy trading 100$ or 10 guys trading together 1000$ ( we presume that each one got into the pool with 100$). How can they get some leverage over the guy trading alone? Is there any way that in the forex world more people associated could have some advantage over the guy trading alone? Beside that 10 people ideas and analyses are better than 1 guy is there anything else they can achieve by working together and having a bigger budget?

Cheers

"Beside that 10 people ideas and analyses are better than 1 guy"

Who told you this? ... I never believe this statement ... One good strategies can bypass even 10000000000000 ideas if it works well

Do you think there Machine learning in trading: I will write an

cheinvest 2013.10.28 23:52 #3

Probability for 10 people to outsmart 1 guy is obviously larger but of course the situation you describe it's possible.

Though, through my question I'm trying to discover if there could be any advantage coming from the fact that the group has more money available... how could they benefit from it even if let's say, they have same strategy with the single guy...

Fractals question ? Moving average from moving Help me write an

Anton Nel 2013.10.29 09:05 #4

Depends on strategies. One of strategies I know - it requires a large group like big boys (e.g. min. total deposit 1,000,000). They can generate more profit (e.g. ROI = 100% p.a. per shareholder) than the one who trades with 100 (e.g. 20% p.a.).

Need your advice on Which time frame? 15min,30min,1h,4h,1d? Starting forex trading

Alain Verleyen 2013.10.29 09:10 #5

cheinvest:

Probability for 10 people to outsmart 1 guy is obviously larger but of course the situation you describe it's possible.

Though, through my question I'm trying to discover if there could be any advantage coming from the fact that the group has more money available... how could they benefit from it even if let's say, they have same strategy with the single guy...

Of course it's beneficial to have more capital.

As RaptorUK said you can start some trade with 1000 you could not have with 100.
For a given trade, for example a volume of 0.01, you take 10 times less risk.
You can increase you profit (or losses) by trading 0.05 instead of 0.01 and still takes less risk (in % of your capital).

Machine learning in trading: Lot Size with 0.1 EURUSD - Trends, Forecasts

Ronnie Mansolillo 2013.10.29 09:10 #6

In Italy there is a joke that says: "two people together are few but three are already too many"

Another joke says: "better alone than in bad company"

Anton Nel 2013.10.29 09:41 #7

Rosiman:

In Italy there is a joke that says: "two people together are few but three are already too many"

Another joke says: "better alone than in bad company"

Agree - I would rather to be alone than in bad company.

cheinvest 2013.10.29 09:49 #8

Thanks for your inputs guys.