Great point, thx for bringing it up: during the combine, all positions are intraday. Once you go live you could do swing/position trades.
I've seen this perspective before, and it still confuses me a bit. The parts I don't understand:
Taking a few weeks off to do sim trading - Assuming you would be trading an already active strategy, it seems like this would be more like just trading on a separate account. Or to concurrently test new ideas with zero capital at risk. I do understand it might require some diverting some attention to getting familiar to the platform, account requirements, and so forth. Fully aware of that part of it
Have to give up 20% ... and commissions - If it was capital you had provide, I absolutely understand this objection. However, in this scenario, you aren't providing any risk capital. So in my eyes it looks like choosing 100% of zero instead of 80% of gains from a 50k-150k account.
While I completely agree that so far this type of scenario seems like a great option for underfunded and newer traders, it actually seems like it would be very appealing to established traders.
Even if you're already trading a 500k-750k account, it seems like a good way to expand your trading program. Kind of along the lines of running a mini-fund (up to 150k, so more like micro-mini
). However, unlike the '2 and 20' where a fund manager gets 2% of assets and 20% of any gains, you're looking at keeping 80% of gains.
This also ties in with my earlier thought that this seems like a good way to test new ideas or segment your trading capital. Again, beneficial to an established trader. I am not an established, full-time trader, which may explain why this seems like a good idea
I hope to see more your perspective on this topic, but can also accept that it may have already reached its point of diminishing returns for your time invested. Thanks for your thoughts and comments, Lornz, they are always appreciated.
Btw, kudos on the excellent combine results