I agree with the last few reviews. Not sure what Brad is (was) thinking. Unfortunately I got about the middle of July. Made a few good small profits... then the SPXS debacle, and then NUGT. Yesterday I bailed and sold all my NUGT. I am considering myself "lucky". I wish those of you who are remaining The Best Of Luck.
My questions to the developer:
Hi Bradley,
Your stats look impressive and I've been considering to subscribe for sometime. Just a few questions:
1- I believe this is a discretionary trading method, correct?
2- What kind of max drawdown is not acceptable for BluStar3X?
3- Are you sending limit orders or market orders (I'll trade manually)?
4- What is the max drawdown per trade?
5- Are you trading this strategy for yourself?
His answers:
1) discretionary
2) 5%
3) Market orders
4) Average 1-2% Max
5)Yes
AND STATS:
MAX DRAWDOWN: 20.61% in TWO TRADES.
NO COMMENT!!!!!!!!!!!!!!
Nothing new - just another banker getting nice numbers to attract customers. All is good. Then suddenly the strategy changes and in few trades the account in burnt.
EVERYONE GET OUT OF THE NUGT TRADE - GOLD CAN CRASH FURTHER ANYTIME - USE COMMON SENSE AND LEARN TO TRADE WITH TECHNICAL ANALYSIS AND INDICATORS!
MOST STRATEGIES HERE ARE MADE TO RIP YOU OFF - OBSERVE AND USE COMMON SENSE.
Brad
..I..
Brad had a good system going. Nothing heroic but solid gains with reasonable risk management and everyone was happy.
Then the NUGT trade. I think Brad believed so much that the trade would work out that even if it did (which it looks like it won't) people would leave the system because it's not the kind of risk they're willing to accept.
Right now (July 23, 2015 NUGT trade, down 11%) this looks like a second really bad call for this system which was already down 6% last week by going against the market with SPXS and holding all week. It's also a risky call, since NUGT is triple leveraged, gold is extremely volatile, and it's extremely difficult to predict gold stocks.
Combined with the current drawdown, this eliminates all but 3% of my 18% gain since starting BLUSTAR3X autotrade in early May, and still looking at the possibility of losing significantly more if NUGT does not reverse course very soon. Originally the system owner was going to do 50% SPXS and 50% NUGT. This would have been safer.
In my opinion these last two trades violate two of the basic rules of trading, e.g. (a) try to minimize risk while maximizing profits and (b) cut your losses short and let your winners ride. The first (SPXS) trade clearly violates (b) while the second one violates (a). I might add that Brad had a pretty good May and a really good June by making lots of little gains and some small losses. However, if your winning percentage on SPXL/SPXS is 70% but you only typically make 1-2% on the winning trades (let's say 1%) but then lose 2% or more on the losing trades (either by holding onto losing positions or gambling on risky trades like NUGT) then you will not be successful, and certainly will not beat the market. Also, I consider both of these trades to be unforced errors - the first because the system held too long (also I wouldn't have taken the trade but would have stayed in cash because of the inherent risk in going short for the 3rd weekend in a row, when both the Iran and Greek deals were about to be announced, and the system had already made gains the previous 2 weeks on this trade) and the second because it's too risky and not part of the original strategy of the system. So in two weeks (or slightly less) almost all of the gains since May 8 have been wiped out, with what I consider to be excessively risky trades.
Have to watch these systems for a while before following. Its how a trader deals with drawdowns that says it all and holding on to a big loser is a mistake, then take on a huge risk to try and make back those losses is a real rookie mistake!
I just wanted to express my disappointment with this system. When I subscribed developer was trading system paying attention to drawdowns. But in last two trades he is totally disregarding risk management and taking huge drawdown 19s. I would advise him to pay attention to risk management. Huge drawdown 19s are big no-no to success of a system here on collective.
I have only recently subscribed to BluStar3X, but so far he has done very well. He seems to be fairly conservative and thoughtful about the trades he makes (usually at the end of the day). He does not hang on to losing positions and does not over trade. VERY happy with this system so far, and will probably up this rating to a 5 star in three months. Will report back!
