For me the ES has smallest capacity. Next is position trading stocks. I have an upper limit of 100K shares per capital sub stream. Think of a nominal 30 dollar stock (3 million dollars). The larger market is sector rotation. There really is no upper limit there. I would say that a person could start with any amount of capital and compound. He would plot his equity curve on semilog charts. 20 to 40 trades a day is common in commodities. 100 rounds a year is logical in separate streams of capital in position trading. A turn would be 10% nominally. Sector trading is where capital surpluses wind up when a person trades at commodities capacity and position trading about 12 streams. A sector trade is about 4% a week and the hold would be about 4 1/2 weeks usually. A hold period in any trade usually involves three price, volume moves: dominant, non dominant and finally dominant. A CW trader usually runs into three situations in no particular order. these cycels are usualy referred to up down. I trade three moves instead. A typical up down for a CW trader could be up down (Dom, Non dom) Or it could be up down ( Dom, Dom) Or it could be up, down (Non dom, Dom) Above are six moves of a cycle of any instrument. For me it is a long, then a short. The long is dom, non dom, dom. The following short is Dom, non dom, dom both traders go through the same doms and non doms; on trader is always fooled the other trader is never fooled. CW trader sequence: dom, non dom; dom, dom; non dom, Dom. Each effort is different and causes anxiety, fear and anger. In the market then recover emotionally on the sidelines is the CW modus. (See Steenbarger, etc...) See OODA of John Boyd.... See the Bohr syndrome. See the Lizard Sydrome. My sequence for the three market strategies is: Dom, non dom, Dom; Dom, non Dom, Dom. Both trades are identical whether short or long. We enjoy the three emotional traits of support, comfort and confidence since all patterns long or short are the same. All moves were up, down, up, down, up, down in that order of cycling. But the volume told the story in the cycle order of Dom, non dom, dom, dom, non dom, dom. I doubt if many people can do pattern recognition in CW type trading which is largely entry exit type trading. Very few traders go to the expert hold reversal level of trading. How many traders get to the place where they have to do multiple types of trading to accommodate capital? That is why you asked a question. My comments above about two paradigms, CW and not W, are still foreign to your thinking and reasoning as what diferentiates CW from non CW type traders. Don't worry if you do not understand these comments.
You wouldn't be too smart executing this strategy being that you are throwing 5% or something of your account per tick. Unless you are "just foolin" you will probably just feed the coffers of your friend JP Morgan with most of your net worth.
Quote from bigarrow: You are often critical of those posting about trading on here. I am critical when people live in a dream world. Anonymous unsubstantiated claims and assertion are without merit There are a fair number of "system vendor" sites and auditing services, where a large numbers of traders think and tell everyone else they will do well - in the thousands of them. Ttimertrac.com, collective2.com, theta research, hulbert, futurestruth, attain capital, striker securities, robbins world cup, timerdigest and others. Since pretty much zero of them show these kind of returns for any length of time, it goes back to the original. Without proof, it is highly doubtful to ludicrous. And that is without saying about what kind of risk is involved, since RAR matters, not how much someone thinks lescor mentioned as made in one month as being a guide. [/B]
Quote from jack hershey: Or it could be up down ( Dom, Dom) Or it could be up, down (Non dom, Dom) ... For me it is a long, then a short. The long is dom, non dom, dom. The following short is Dom, non dom, dom both traders go through the same doms and non doms; on trader is always fooled the other trader is never fooled. CW trader sequence: dom, non dom; dom, dom; non dom, Dom. .... My sequence for the three market strategies is: Dom, non dom, Dom; Dom, non Dom, Dom. ... All moves were up, down, up, down, up, down in that order of cycling. But the volume told the story in the cycle order of Dom, non dom, dom, dom, non dom, dom. Does anyone ever get the feeling that Jack should have been a birthing instructor? Don't worry if you do not understand these comments. Jack, no one in the history of humanity ever understands your comments.
I agree with increasenow and cant believe not many others do. To tell you the truth, I would be upset only earning $400/day with a 50 k account size. If this was the case , I suggest that the trader reconsider how he trades and the proper use of his margin. His excess capital is not earning shit and may as well be put somewhere where it will be used. Just my 2 cents worth......
Elite Trader is a joke and laughing stock of the internet. I come here to check out the platform and broker reviews yet I always get pulled in to some screwed up convo. There is a big difference between an income trader and a trader that is seeking some yearly performance goal. Nodoji has been progressing and pulling consistent money from the markets($400-$600/day) with a 50k account and many of the same guys on this thread give her hell saying she is small time and should be bringing in higher daily average. Some of you guys are overcapitalized(aka more money than brains) and many of you are out and out frauds. When I began daytrading stocks back in 2000 the daily goal of each trader on the trading desk was 1% of buying power. When I switched to the ER2(old Russell2k) we scalped at 8-13 ticks per contract/per trade. Too many of you guys view your trading accounts as some damn video game where you are trying to get the high score and don't bother to extract profits on a weekly basis to cover your living expenses and to reduce the amount of capital you have exposed to the markets. I read Nodoji's comments and wonder why she wastes her time hanging in loserville known as Elite Trader and you can tell the biggest losers by the number of posts that they have accumulated as well as the uselessness of the aforementioned posts. And yes if you can't average $300-$500/day trading a 50k account you shouldn't be trading. This is an expectancy and frequency based business. a lot of you guys that are consistent losers aren't trading for money...you are trading to be right. Ask any broker or just ask any unprofitable trader and he will tell you that usually at some point during the day that trader was net positive and gave all the gains back and then some. Of course an Op that asks this sort of question obviously has no experience, screen time, nor trading skill and discipline necessary to trade so the whole point is moot. A 50k account can easily trade a 5-10 lot with no risk of margin calls etc. I am still wondering why I visit this 20 car pile up on the expressway known as Elite Trader because it is a very sad place. I guess there is a little masochism that exists in us all. There are much better trader blogs out here on the net where traders that actually trade share ideas and strategies and none of this I'll lose my edge nonsense that is commonly pushed on ET. Like anybody gives a damn about my 10 ES cars(damn pebble in the ocean). Trading is hard because it is a performance based business 99% of people are paid for their time not for their performance. Pressure busts pipes but it also creates diamonds. There is nothing to be ashamed of if you can't hack it as an income trader...hell I couldn't hack it if I had to sell insurance or some other BS for commission. Find what you are good at and just do it.
You aren't that great at the game of risk management. Not to be mean or anything, but you need to realize what you are saying and do the math. Lets just say $500 a day for easy math That is 1% EVERY DAY. What are you risking to gain your 1%? Best hedge funds average around 8%, I've seen the prospectuses personally. So everyday by your assumption you should always average 1% per day. Does that even make sense?