Kim Posted January 20, 2013 Posted January 20, 2013 It never stops to amaze me. I'm talking about the creativity of some options "guru" when it comes to presenting their track record. "Maximum profit potential", "Cumulative return", "90% winning ratio", "Annualized return" are just few of the tricks used in the industry to entice you into joining their website. This article describes some of the tricks used to make performance numbers much better than they are. Click here to view the article Quote
Stephen Posted January 20, 2013 Posted January 20, 2013 Thanks for the article Kim. Just a reminder that commission costs take a very large portion of your profits. Quote
Marco Posted January 20, 2013 Posted January 20, 2013 ha some of these are new to me.I also like to look at '4000% per year for 10 years running etc.' claims as I know it's simply impossible and if they'd be making that they wouldn't need to sell subscriptions at 50 bucks a month for it. But it amuses me how people manipulate their results in more or less outrageous manner. Shame for the people that fall for it though and not only lose their subscription fee but also their accounts to these guru'sI think the perfect performance reporting for me was if someone would actually stick 10,000$ into an IB account and trade every trade he recommends on his/her service there and puts up the performance reports that IB offers for every one to see. Would make all of the above tricks impossible.In essence that is what subscribers do (trade a 10k$ account (the numbers can be multiplied for larger accounts) so they can see how their account would have changed after a year - 10,000$ on Jan 1st - what do I have now? if its 11,000$ you can tell me all you want about 100's% of cumulative performance etc. I know you made 1k. Simple, honest, no room for interpretation and you can see how the strategy actually works in 'the real world'.Will probably never be used by any newsletter though... Quote
coachcr Posted January 22, 2013 Posted January 22, 2013 Kim, I noticed the last several trades weren't logged. How often do you update the performance page? Quote
Kim Posted January 22, 2013 Author Posted January 22, 2013 I will update it by the end of the month, and all trades will be there. Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.