2. INDEX
1. WHAT IS IT?
2. WHAT’S THE POINT?
3. HOW TO PROGRESS?
4. QUESTIONS?
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3. TS Stable Risk – What is it?
Changes in the risk an investor can expect from your strategy
(Can you convince an investor that you’ll manage his risk as promised?)
1 The single most important element of the TS Challenge
2 The core skill required to manage investors’ money
3 The RISK part of your RISK / RETURN proposition to investors
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4. INDEX
1. WHAT IS IT?
2. WHAT’S THE POINT?
3. HOW TO PROGRESS?
4. QUESTIONS?
4
6. Gráfico de
martingalatrascastaña
Where did it all go wrong??
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7. Introducing… the martingale
An attractive illusion…
But keep your money AWAY from it!
• An age old trick
• Heads = Win, Tail = Lose
• Head -> bet, tail -> double the bets
• Guaranteed to win WITH ENDLESS
FUNDS (not in this world !!)
• Looks promising!!
• Attractive returns
• Low initial risk
• Seemingly constant (but actually
random) risk profile
• But it’s TOXIC to investors
• When losses hit…
• Capital suddenly implodes
• With NO prior warning
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8. An appeal from Independent Traders’ nation
Martingales that burn investors…
Steal YOUR credibility as a trader
• Martingales undermine our collective
aspiration to manage investor capital
• An investor deceived by ILLUSION
• Will NEVER trust a trader again
• Will speak out against ALL traders
• What CAN you do?
• NEVER replicate a martingale
• If in doubt, demand your signal
provider for his TS Score
• Expose this fraud for what it is,
wherever you come across one
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9. INDEX
1. WHAT IS IT?
2. WHAT’S THE POINT?
3. HOW TO SPOT A MARTINGALE?
4. QUESTIONS?
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10. How to spot a martingale?
Martingales come in many different flavours
But all share one or several of the following
1 Many trades on the same or correlated assets open simultaneously
2 Impressively smooth path upwards
3 Look for past losses: if risk was increased following losses, STAY AWAY!!!
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11. INDEX
1. WHAT IS IT?
2. WHAT’S THE POINT?
3. GROWING YOUR TS PERIODS?
4. QUESTIONS?
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12. Where to go from here?
• http://en.wikipedia.org/wiki/Martingale_(betting_system)
• You may want to check what a TS position is, as well as TS STABLE RISK element
• This article is a stub - Feel like you can improve it? – GREAT!
• Feel free to post your questions to the TS wiki – we’ll incorporate them by
improving its content or on our FAQ
• Have suggestions? juan.colon@tradeslide.com can’t wait to hear them
• We’d love to credit you for improvements
• Contributing to the Q&A sections will boost your mentor score if others like what you post
(even questions do!) – helping out will reflect on your community standing
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