25% Demo Challenge

Discussion in 'Journals' started by trading_time, Aug 27, 2006.

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  1. This is a challenge to make no less than 25% in ten (10) trading day, starting Monday August 28 (8-28-2006)

    The demo will be started with $50,000 and I am challenging myself to make no less than 25% or $12,500 in 2 weeks, the equivalent of 10 trading days.

    I am counting day trading margins as $500 per lot.

    I will not be trading more than 20% of total account balance. This means at the start I may only trade 20 lots.

    This is an aggressive approach, but that’s the purpose of this thread.

    I trade YM, ES, NQ, ER, QM, DAX, 6E, and the DJ euro stoxx 50 (sorry forgot the symbol at the moment)
    There may be a few other contracts I find interest in (will add those later if need be)

    I will post at the end of my trading session every day, Screen Shots of the PnL, and PDF file of all transactions with dates, times, and cumulative PnL.

    Hopefully I have not left anything out, any question or comments welcome.


  2. jtnet


    yeah untill u get blasted one day, there goes the whole plan
  3. why dont you try trading in one of those contests

    where you can not only get known as a great trader but win some prize money ? one of the companies doing this is called
    market czar ( or something like this )


  4. With sound contract management you don’t get blasted.

    50k account,

    Trading 20 lots, or heck trading 40lots

    Symbol traded.


    targets 4 ticks, or 1 point.

    Stop loss 4 ticks, or 1 point

    3 trades a day, 60 a month.

    75% accuracy. = 45 winners / 15 losers

    Heck lets make it 66% accuracy = 40 winners / 20 losers

    Profit at end of 30 days = $40,000

    Okay we just made $40k in one month, not to shabby.

    Okay next month,

    We have a crappy month, and I do mean crappy.

    We lose on every trade, all 60 losers. Only for every losing day we cut our contracts in half till we reach 1 contract.

    First day we lose = $6,000 on 40 lots

    Second day we lose $3,000 on 20 lots

    Third day we lose $1,500 on 10 lots

    Fourth day we lose $750 on 5 lots

    Fifth day we lose $450 on 3 lots

    Sixth day we lose $300 on 2 lots

    Seventh day we lose $150 on 1 lot

    This leaves us 15 more trading days in the month trading 1 lot. 15days x 50 bucks loss a pop x 3trades a day = another $2,250 loss for the rest of the month

    Add all losing days together = $14,400 total loss for the month.

    The first month me made $40,000
    The second month we lost $14,400

    40,000-14,000 = $26,000 profits

    There is a problem with this plan though. It is with fixed figures.

    #1 My accuracy is better than 66% so therefore the profit would have been higher.

    #2 I don’t have a 1 for 1 loss/profit system, meaning my winners make more than my losers. Profit 8 ticks/Stop Loss 4ticks. Again more profit.

    #3 I don’t lose for a whole month.
  5. okay thanks, I will check it out. :cool:
  6. Can you talk a bit about your system?
  7. jtnet


    how come no one trades NYSE, everyone on here does ES =(
  8. u n d e r c a p i t a l i z e d

  9. Sure,

    I find that for me simplicity is heaven. Therefore I do not use any indicators other than moving averages. This system gets so simple I think a lot of people will find fault in it. But hey it works for me.

    I start my day out by looking at the daily charts of the cash indexes. Dow, NASDAQ, SPX, Russell ect. What im looking for is, will this be an up day or a down day? Will we trade up then hit resistance and sell off? I will also look at hourly, and 5 min candle stick charts of the futures in pre market looking for areas of consolidation, basically areas I think will hold as support resistance.

    I as well keep an eye on the news for the week. Im basically looking at market sentiment trying to determine which way I think the market will go for the day, how it will act for the day.

    I then make a mental plan:

    okay I expect the market to go up at open hit this level then sell off.

    If this does not happen then I need to quickly reexamine charts, news to redetermine/examine the situation.

    Okay this next part takes experience,

    As an example: After an area that I think is support is reached I will watch price action on the DOM of the indexes looking for how it acts. This is where my entry is, this system does not always bring a guaranteed 20 ticks with 75% accuracy. One trade might be good for 3 to 5 ticks, while the next one will catch a trend and trade for 20/30ticks

    But how do I know when it will be a small scalp trade or a good runner? I don’t! So this is how I handle it.

    Say I go long 6 lots of ER @ 725.00 even

    I will have targets, sell 2 lots @ +10 ticks, sell 2 more @+20 ticks, and sell 2 more @ +30 ticks

    When the initial first target of +10 ticks is hit the stop is moved to break even. This allows me to have profits while protecting the rest of the trade. Most of the time you get stopped out, but when it does run you make money, and lots of it.

    Now this system works without charts too, it’s just harder. I will post a shot of a trade I did with no charts at all. I did not even get a glance at them. I was having problems with my charts that whole day. You will see in this shot that I have screaming quotes of the DOW 30 stocks. I as well watch how they trade to determine market direction. This is something that just takes time, keep looking at DOM, watch the Dow 30, you will start to see, and know a move is going to happen before it happens! Generally speaking the markets ES, ER, YM move together so a buy in one can also be a buy in the other. If your not trading 50 or 100 lots then don’t be stuck on trading ES only. So many trader trade that only, why?

    If you have any questions at all about anything, just ask me.



  10. I forgot to mention that I also look for trading differences in the indexes (maybe it is called something else)
    For example I placed a buy in pre market on ER more then once on different days for the same reason. The YM, NQ and ES were trading up while the ER was trading down by about a point. If I am expecting the market to continue rising in pre market, ER is the one to buy, as it will reverse and have a bigger gain. I also like having contracts already in the profit before the market opens. It gives you the safety, and ability to catch a good move.

    Another time the DAX and Euro Stoxx started shooting higher while the US was selling off or just sitting there, this was in pre market. It caused the YM to have a 5min reversal allowing me to enter, for an easy 20 ticks. See below image.

    #10     Aug 27, 2006
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