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Re: How to be a trader and earn income passively from other sources
Idea being thrown out:
You know some brokers out there trade "Mechanical Systems" for the individual. One idea i have tossed around to start for the next year is to set-up several accounts with these "brokers" ( after DD ) of course, and let these accounts grow individually. Heres the setup i was thinking about.
Set-up 5 accounts.
Fund each account ( or trading system ) with 10K.
Specify the max# of contracts to be traded for each system.
Specify when the account reached a "X%" drawdown, the account would
be closed. ( I am thinking around 35% or so )
One obvious aspect of this is that they would need to be proven systems with long term track records that trade longer term to reduce the commisions + drawdowns.
At the end of each year, clean out the accounts back to the starting funding level. (That is, if the "system" HAD profits). Then, could re-invest in a "new" system, etc etc and just keep rolling it over. Sounds almost like a glorified mutual fund with high expenses, ( or maybe similar to a hedge fund? )
Food for thought only...
Knyyt
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