It's completely fair; in a sense you have allowed for leverage because penny stocks by intrinsic nature of their low valuation will move 10's and 100's of percent per day. Thats leveraging percentage moves. So if you allow that ridiculous risk apetite with no margin calls, why not mine? It's speaking the same language in a different dialect.Originally posted by troyl
So you think because you chose to select futures as a couple of your picks you should be able to use leverage? How is that fair for any of the other picks? Sorry this is cash only no margin/leverage. You are short 1 barrel of Dec 2012 WTI and you are long 1 barrel of Dec 2013 WTI. No contracts, margin, leverage, or margin calls
According to CME Exchange I would, with 100k capital, be able to purchase 200 spread contracts according to their margin requirements (more actually, they post $250, I'm calculating with $500 just for reasonable sake). It's akin to buying 10,000,000 shares of a 0.10 stock using 100k bp (think elasticity of a stock... there's a reason Google doesnt move 20% every day).
Why do you penalize me for utilizing the same free public information that nobody else chose to utilize?
PS. Standard margin on stocks is 150%. If you want to recalculate. But it doesn't make a big difference to anyone else in the competition since everyone chose stocks.
If you don't want to do it then say so. What I am proposing is not unreasonable, so like I said, I will post and calculate my own gains if you are unwilling.
Put this formula in:
(H57+H45)*(200*1000)/(100000) and convert to percent.
Use this link for quotes
http://www.cmegroup.com/trading/ener...eet-crude.html
According to the weekend quotes (which sometimes cannot be trusted) the spread is at -1.97 now, which puts me at 1.14 gain, which is 1.14 * 200 * 1000 / 100000 to percent = 228%
*Edit. Or you can disqualify me from the contest and save frusturation.