Flat out 2006

Discussion in 'Journals' started by 40yotrader, Dec 29, 2005.

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  1. I'm done for the year so I'm setting up my journal to track my goal for 2006. My goal is simple. Start with 325k and grow it to at least 825k in 2006 (after comm. but before taxes). Most of it will come from compounding. I have enough saved to cover the taxes for the year. My reason for going all out is simple. My edge is dying and I think this may be the last year it'll work. I daytrade ES using volatility breakouts. It'll work as long as the average daily range on ES is 7 pts. or better. For all of 2005 the average range for ES was 12 pts. I think it's going to contract some more in 2006 and if the NYSE extends the trading day it probably will reduce the daily range further. I'm a mecha trader so I don't have any profound analysis for anyone to read. I've split the trading into two parts to speed up processing in Tradestation. The first tells me if I have a trade for the next day. If I have a trades, I update 3 models and tell them to look for trades that day. They run on 1 min. data and use stop orders to get in and out of trades.

    I'm think of opening another account to trade options so I'm going to post my paper trades on options here to keep track of the results.


    No trades tomorrow


    Short Jan 1255 call 12.00
    Short Jan 1250 put 10.00

    Good luck to everyone in 2006.

  2. Looks like it's going to be a boring start to 2006. Models don't indicate a trade for Tuesday so I'll be sitting around again.
    Today's entire range happened in 20 min. near the end of the day and was only 7.25 pts. Just the kind of market the models try to avoid.

    For most of the day the option trade was 1 - 1.5 pts. profitable. When the move happened the profit in the spread evaporated. I guess that's from sentiment.

    Futures (real money)

    No trades

    Options (paper money)


    closed out Jan 1255 call @8.90 (+3.10 profit)
    closed out Jan 1250 put @13.20 (-3.20 loss) gross on trade -.1

    sold Jan 1255 call @8.90
    sold Jan 1240 put @8.60

    I'll start tracking the wins, losses, etc. starting with the Tuesday trades.
  3. good to see you start a journal 43yotrader, i hope you stick with it.

    a quick question, whats your strategy/reason for selling options?

  4. The daily decay at static vol/price is about $80 on that position. Why cover the straddle into a long weekend decay with the position near-neutrality? How many contracts were you trading? Selling ES gamma is far less margin-intensive than SPX.

    Index straddles aren't typically one to three day trades, unless you're long into a large move, short insanely high vols, or selling a straddle with a large delta position when implemented.

    Edit: Oh, these are paper trades. Carry on.
  5. I guess I'll give up the options nonsense. Doesn't seem to offer much for a non-directional daytrader and does seem to have significant risks. I only traded my 3 strategies a total of 76 days last year so trading days will be infrequent.

    Day 1

    No trades

    Tomorrow's plan

    No trades
  6. I believe that options are not built for daytrading, especially for daytrading sideways movements as a retail trader. Since daytraders actually want to trade off movement in and out, options have too many hurdles to overcome to daytrade them with the same ease as with stocks or futures.
  7. Day 2

    No trades today


    No trades for tomorrow
  8. Choad


    Most boring journal EVER.

    Just kidding, 40yo! :D

    If there aren't any trades, then don't trade. Smart discipline. What was that Livermore quote?...

    Good luck. :cool:
  9. Day 3

    No trades


    First day of trades in 2006!!!:D :D

    Hopefully it'll be a nice directional day!

  10. Day 4

    First trades of the year.
    Good enough range to make a decent start.

    Total of 68 round turns in ES.
    Total losers $-3,180.36
    Total winners $15,944.64
    Net profit +$12,764.28
    Ave. profit per-r/t of $187.71 or about 3.75 pts. per-contract

    Starting balance $325,000
    Today's gains 12,764.28
    Current balance $337,764.28

    Total winners +$15,944.64
    Total losers - $ 3,180.36
    Total profit $12,764.28
    Profit factor 5.01
    # winning days 1
    # losing days 0
    Total round turns 68
    Profit per-contract 3.75

    For Monday

    No trades for Monday
    #10     Jan 6, 2006
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