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Old 10-16-2007, 11:48 PM
pig4bill pig4bill is offline
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Join Date: Dec 2005
Posts: 2,658
Default Re: 50% returns on small amounts?

[ QUOTE ]
I really really dont think 50% returns are sustainable. Its like the 10pt/bb winrate. Sure some guys can run there for 40 to even 70k hands but put it over any decent sample and its basically impossible expect for honestly 5-6 guys in the world. The stock market cannot allow you to see the long run so this argument is pretty pointless. Its very possible DCs gains during the years were due to positive variance and his real EV was 25% gains. Im not saying it eas or wasnt, im just saying if poker has taught me anything its to not be so results oriented if the decision was an intelligent one.

[/ QUOTE ]

50%, and better, is sustainable, to the point that your account gets too big to put all the money to work and your hunger to build your account wanes. However, if you build your account to a mill, you can still pull down a half-mill consistently even once your account grows to 2 or 3 million.

And you really have to quit using poker terms like variance and EV when talking about the stock market. There is no such thing. In relation to poker, there are 52 cards and nothing governs what cards come out other than mathematical probability. There is NO such probability in the stock market, and you cannot have an expected value of a stock play. At the MOST, you can have a likelihood that a T/A play may or may not work based on past results. But even there, past results are one among many factors that decide whether the play works or not. It is never pure probability, as in poker.
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