Well... the testing continues for at least 60 days... At that point I'll put the money where my account is... My Risk ranges between 50-100 a trade, manually entered.. no algorithm, OCO placed with 2-4 tick takes, and 4-8 stops.
Good luck.. just make sure your fills are realistic if you are using limit and be sure to account for trade costs. I think if you can make it work with such a low risk trading style that you'll be able to trade it. I will add though... when I try to trade with tight stop, I typically dominate in the futures market. I could only break even with tight stop. So, again it wasn't something I could make work. I did better when the volatility was up but it only take a few mistakes to give it all up. Sometimes I run my account +3k or +4k in 1 day and every trade was a winner. The first time I thought I was going to be rich for sure and then the next day I'd lose it all. I learn a lot about this though. I think it is very good to try to go out and see what you can do because thats the only way we learn our limits.
i agree, you should try, push yourself and see how far you can go with it. You would be surprised at the kind of numbers one can do with a solid strategy they are comfortable with. I never understand why people are so negative sometimes when someone starts talking big numbers, i mean, just becuase they cant do it,doesnt mean you cant do it, have faith and confidence in yourself and anything is possible..
I dont want unrealistic expectation, but it seems like my system is nearly unrealistic in its output?
i cant.. unfortunately i just tried and the formulas wont work... but there is a utility i have on my 03 computer that does it.. google it. I have updated todays results.. i had a huge streak tonight
Its only unrealistic output becuase in your mind you think it is. Im sure there are individuals that if you saw their statements you would think it was impossible, but they are doing it. So stop limiting yourself and think bigger, as long as you keep focus and stick to your strategy, ride it as hard and as long as you can, there is no limitations once you have figured it out. OF course these results could be because of the market conditions, etc..., but think bigger, and refine when you have to.
I've been trading since I was 14, first job was an options market makers assistant at PSE in SF.. i saw some crazy numbers in my teens... I know its possible, sometimes when you do it yourself it feels surreal. Thank you for your encouragement
The one thing that is a question in my mind is your profit per trade is very low. If your stops slip a tick then that could turn this into break even or losing strategy. If you use limits to exit then do you have a volume criteria or are you using a 1 tick must pass rule for fills? Strategies that make tiny profits are very subject to the costs and fill assumptions. Most system developers look for about $35 per profit per trade on average to help cover any errors in slippage and transaction costs. You need to make sure you're simulator is set to a realistic tick fill engine. Also, if you're just watching the market then you may be missing ticks that move against you.