"Trees don't grow to the sky" - page 58

 
LeoV:

2. normally, returns are shown without taking into account the size of the deposit (inputs).

This is the whole catch. Because the investor needs to accurately assess the risk, i.e. depending on what percentage of the deposit the manager is risking, because this figure is the maximum possible drawdown. And if the risk is unknown, such investments are just guessing by coffee grounds.

 
Reshetov:

That's the whole sticking point. Because the investor needs to assess the risk accurately, i.e. depending on what percentage of the deposit the manager is risking, because this figure is the maximum possible drawdown. And if the risk is unknown, such investments are just guessing by coffee grounds.

Sometimes it is worse than coffee grounds: uncritical belief in the past figures. You manage to "scientifically" talk yourself into giving the money away.
 
DmitriyN: It is not always wise to do so.

Well, whether it is reasonable or not, always or not always is more of a philosophical question than a trader's one)))

What is reasonable and eternal in the financial markets?

 
LeoV:

Well, whether it is reasonable or not, always or not always is more of a philosophical question than a trader's one)))

What is reasonable and eternal in the financial markets?



Beautiful! :-)
 
The problem with PAMM forecasting is no different from kotir forecasting with the same consequences and implications. Stationary PAMM - prediction is possible, but not guaranteed. Non-stationary PAMM - problems are guaranteed and their occurrence is only a matter of time and it does not matter how beautiful PAMM was.
 
LeoV:

Well, whether it is reasonable or not, always or not always is more of a philosophical question than a trader's one)))

What is reasonable and eternal in the financial markets?


Like what? The price and its constant growth :-)

Take Stocks in america, for example. it has been growing steadily since 1802 :-) - and if you invested 1 quid in the stock market in 1802, it would be worth about 8 million dollars by now....


than eternal :-), even their crash of 29 looks like a bit of a drawdown....

 
faa1947: Stationary PAMM - predictions are possible, but not guaranteed.

Where to find this magic "stationary PAMM"?
 
Aleksander: take american stocks for example, they have been rising steadily since 1802 :-) - and if you invested 1 quid in the stock market in 1802, it would be worth about $8 million by now...

Let's not take history. On historical data we are all handsome, successful super-traders and money-spoiled multimillionaires at the same time ))))

Let's take the sad present with unknown future - if you invest on March 29, 2012 at 18.00 Moscow time?

 
invest... and bequeath it to your children - so that four generations do not touch them - and all the dividends and surpluses go to reinvestment ... you may see that in 200 years you will have the largest fund on earth (planet) with a turnover of billions of dollars :-)
 
Aleksander: invest... and bequeath it to your children - so that four generations do not touch them - and all the dividends and surpluses go to reinvestment ... you may see that in 200 years you will have the largest fund on earth (planet) with a turnover of billions of dollars :-)

I agree. The question remains - why do I need it? )))