Thursday, May 19, 2005

Time Horizons

Bill Cara: Why time horizons are important
I categorize traders in the following five groups, depending on their time horizon:
· Intra-day i.e., < 5 session hours
· Intra-week i.e., < 5 session days
· Intra-month i.e., < 18 session days
· Intra-Year i.e., < 250 session days
· Extra-year i.e., > 250 session days

My profit objective for each time horizon:
· Intra-day i.e., > +0.5 pct per day
· Intra-week i.e., > 1.5 pct per week
· Intra-month i.e., > 5 pct per month
· Intra-Year i.e., > 40 pct per year
· Extra-year i.e., > 30 pct per year
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