My reflections: I just tried auditioning for 2 prop firms (Part 2)

8:21 AM


1st Target for eToro: All-Weather

My All-Weather strategy has not been used simply because ETF leverage is very expensive. I did not know this until I tried to make my first trade.

Also more instruments have been added to eToro, I need to incorporate them in. But I need some money to do that research, data isn't always free.

But once this research is done, I am likely to use this exclusively on the eToro network.

2nd Target: Macro


I aim to get back to scratch back to a breakeven year at 0% from there I will look to employ All-Weather exclusively.


Risk vs. Effort return

The reason why I am taking this direction is because i am seeing that traders on the eToro network are looking for good returns, i.e. in the ballpark of 10%+ per year. 

The amount of effort and energy required to allow for consistent performance(like how i was trading for the prop firm) is not scalable on the eToro platform. i.e. i can make 1000% with $500 but not with $500,000. The reasons are varied but generally it is non-scable.

10% though is a lot, especially considering where interest rates are at the moment. Can this be achieved with the all-weather, I believe so, but with some leverage. 

The all-weather i meant to be a fire-and-forget strategy because it concentrates on the long-term cycles. While demographics, politics and other factors may influence its performance, most of it will be noise to the strategy. 

It makes for an interesting almost "one-size-fits-all" strategy because it is easy to understand and requires less effort to manage, allowing me to spend my time earning eToro income on the side. 


eToro: Where does it fit in my mission

For those seeking better returns above 5-10% can find other means of improving their returns, but if it is by copying, it requires a certain amount of effort and luck. This not just on the copiers part but the person being copied.

Element of luck is something that I scorn when looking at finance because this is perciesely why i started on eToro in the first place. It is undeniable, but i would like to avoid that element as much as possible.

I started on this eToro journey to help people who do not understand finance, not help those who are willing to put in the work. Help in a nieve manner but a sincere manner. Right now this is as sincere as its gets.

What is effort

The other route of effort, that is something that can be learnt from various sources but requires work. Something most people won't be able to do, and most will blow out. There is a reason why 95% of traders fail.

Most education providers are scam artist (see: https://www.tradingschools.org/), no matter how much you research you are not going to find reliable reviews because so many are incentised via marketing. Trading schools is really the only one I would trust.

Even then, for the highly rated providers expect return less than 20%.

The myth of riches is something that cannot be removed from the image of traders.

So 10% for a copied fire-and-forget fund is actually pretty good. 

What about my high percentage FX trading setup?

I may move my macro FX trading system is still something i believe in and i can still run it. But i will move it to another platform. This is really for my own personal highly leveraged returns, with small amounts, but eToro strength is in its ease of use and social aspects so i will use it for those purposes.


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