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« Silver-Prices.net Portfolio Update 30 November 2010 | Main | Stuck for a Christmas present for someone dear to you? »
Tuesday
Nov232010

An Accumulator?

Accumulator 24 Nov 2010.JPG



During our knockabout sessions we have toyed with the idea of running an Accumulator whereby we make a trade and then use the total proceeds for the next trade and so on. So the stake and any profits are rolled into the next move.

We would need to set a target to be achieved before this exercise comes to fruition, either a maximum number of plays or a financial ceiling, assuming that we have a modicum of success with it. The game would automatically end should we manage to lose all the cash and we would then return to the drawing board.

The use of both stocks and options trades would form the basis for this exercise. At times it may be difficult to purchase the number of contracts that we need in order to deploy all of the cash so we may need to buy a tranche of options on any given trading day. Hopefully we can dispose of them in one trade but again we may need a little time to complete the move.

The idea is to have some fun with it as we are sure it will make us laugh and cry. And this is definitely not something that you try at home, got that, good.

For instance, if we start with $15,625 and were to achieve a 100% profit in 7 straight trades then the Accumulator would generate $1000,000.

$15,625
$31,250
$62,500
$125,000
$250,000
$500.000
$1000,000

Maybe we call it the $1000,000 Accumulator, or how I lost my shirt by really trying.

The probability of this being achieved is just about nil as any speculator will tell you. We may also lose our nerve if and when the numbers get too high and the trade looks to be going against us, so we would have to settle for less or we could get stopped out etc. Having to place the total amount into the next trade would also test our emotions to the limit. However, if we start small then that is the maximum amount of money that we could lose.

So team, if you think that we should give it a go then please vote either YES or NO in the comments box below


Over in the options trading pit the team have updated the progress chart to include closed trades, now 51 winners and out of 53 trades.

sk chart 19 Nov 2010.JPG



The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?


Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.



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Reader Comments (54)

yes

November 24, 2010 | Unregistered Commenters v lamm

YES, worth a shot, especially starting out with a specific sum so that would be all you could lose.

November 24, 2010 | Unregistered CommenterFRANK Obermaier

yes lets have some fun and see were we end up. I love a gamble

November 24, 2010 | Unregistered Commenternigel

I think it would be best to bank 50% of you gains like the pros do at Vegas.

November 24, 2010 | Unregistered CommenterDavid

YES, this was something I was going to suggest to you.
I am a subscriber.
Email address of mine if francisjdesouzaesq@yahoo.com

November 24, 2010 | Unregistered CommenterYES

Yes

November 24, 2010 | Unregistered CommenterDon Hubbard

YES - give it a go

November 24, 2010 | Unregistered Commenterdonprizzi

YES!

November 24, 2010 | Unregistered CommenterSherri

yes to accumulator

November 24, 2010 | Unregistered Commenterc filipchuk

Yes. Use a initial small value though, ie $1000.

November 24, 2010 | Unregistered CommenterBrian Young

YES! count me in - sounds like an exciting challenge

November 24, 2010 | Unregistered CommenterGerardo

yes

November 24, 2010 | Unregistered CommenterDerek Penix

YES for the accumulator. I am a subscriber already.

November 24, 2010 | Unregistered CommenterAllen Jue

I vote YES

November 24, 2010 | Unregistered CommenterDonald R. McGahan

yes

November 24, 2010 | Unregistered CommenterChuck Reiling

I second that. It's good to set yourself a challenge! Considering the moves in this precious metals bull market so far and the money moving into it. With your guy's approach and experience it could be done, go for it!

November 24, 2010 | Unregistered CommenterTom

Agreed, great idea.
Suggest just one modification - you put, say 10%, to one side so no wipe out?

November 24, 2010 | Unregistered CommenterRichard James

I vote yes..

November 24, 2010 | Unregistered Commenterstanley ahrends

YES

November 24, 2010 | Unregistered CommenterPaul

"a 100% profit in 7 straight trades"! That's setting the bar pretty high! Insane but might be worth a try!
You'd also have to chart a time-frame for the trades... and a plan 'B' in case things work out at less than a 100%. ;-)
Love your moxy though! Keep it fun! Cheers.

November 24, 2010 | Unregistered CommenterRichie

yes

November 24, 2010 | Unregistered Commenterandy

Count me in, I vote yes.

November 24, 2010 | Unregistered CommenterJames Jones

I'm a newbie. I'm just getting used to following the alerts, so no, I'm not ready. I want to keep it simple so far but sounds good at some point.

November 24, 2010 | Unregistered CommenterBrian Kascenoff

Great idea!

November 24, 2010 | Unregistered Commenterrobrien

Team,

Thanks for all your positive and supportive comments they very much appreciated.

We'll try and knock it into shape and come with something shortly.

Yes it is ambitious to aim for 100% gain on each trade and no doubt we will fall short. Over in the skoptionstrading we have just been stooped out of a trade on SLV, however we made 40% in 9 days so we are not complaining.

This piece of fun will be just that and should be considered as some fun apart from what we do normally, which is business as usual.

Thanks once again.

November 24, 2010 | Unregistered CommenterSilver Prices

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