www.vavatrade.com

[f-man]

Did any of you have any experience with these guys?

They offer different kind of services, including managed accounts.
They seem to be an interesting service provider.

 

[jne]

Did any of you have any experience with these guys?

They offer different kind of services, including managed accounts.
They seem to be an interesting service provider.

From looking at their sales pitch, I can tell you I wouldn't buy it. You end up risking $2 to make $1 because the stop loss is twice as much (up to four times as much) as the take profit setpoint. I asked them about it; they replied that it works best for them that way. But the math here is really simple: at a 2:1 risk to reward ratio, whatever the accuracy of the system is, you have to divide it in half. So if it's 80% accurate, your long-term return is going to be 40% i.e., you're going to lose overall 60% of your investment. If you had a system that had 4:1 reward to risk ratio, i.e., your stop loss is one-fourth of your take profit, you would only have to be right 25% of the time to break even. Since you can enter the market randomly and be right 50% of the time, money management is the key here. Van Tharp has a good home study course that covers this.