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Lance Breitstein is a very rare trader.
It is said that he has earned over 100 million USD from trading over the years, which is equivalent to more than 700 million RMB—very impressive. Although this is reportedly what he claims himself, I haven't seen any public account data yet.
Generally, when someone claims to have made a few million or tens of millions, it's rare to hear someone directly say they've earned 700 million, so I tend to believe it's true.
He also responds to these doubts, saying that he has provided his trading account data to Jack Schwager, the author of "Market Wizards." Jack has verified it, and he will include him and his classic trades in the book.
Since that's the case, let me spoil a very simple and easy-to-use strategy of his: the Extreme Out-of-Control Strategy.
The core of the strategy is the expected value, which means before each trade, we need to assess whether it's worth doing. The decision mainly depends on three aspects.
First is the win rate, second is the risk size, and third is the profit potential. Specifically, whether the probability of a reversal at this position is higher, whether stop-losses are easy to set and unlikely to cause significant losses if we make a mistake, and whether the recovery space is larger if prices deviate far from the target. Only when all three conditions are met is the trade considered good to execute.
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