Starting next week I will begin a public challenge. I am freshly depositing $10,000 into a futures trading account. During the course of six months, I will look to turn that balance into $100,000. Every single trade will be posted on this forum. I will also likely do a daily video update on where the entries & exits were, and also explain why I initiated that trade in the first place. Purpose of this challenge? I am beginning with an account balance that most people entering the markets can relate with. Most of all, by having a separate account that will have every single trade documented, there would be full transparency and it would also come to light as to whether or not it is feasible to have a consistent edge in the market. What trading strategies will I be employing? Strictly technical trading. Locating support and resistance levels and deciding my entries and exits based on that. I will not utilizing fundamentals and at the very most, I would use RSI as an indicator. Why only futures, how about options or common share? Simple answer, day trading restrictions. When an account has a balance below $25,000; you are only able to have three same day trades within a 5 business day period. This restrictions apply to option trading or trading common shares. Since I tend to open and close positions in the same day quite often, I do not want to be concerned with that restriction. Trading futures also opens me up to trading commodities that have less news to trade on, etc Corn. Lastly, for a new trader, it is much simpler to trade the futures market as opposed to options that derive their value from several different factors. Will I set weekly profit figures? I will not since that is too difficult to anticipate. On a good week, if I hit that figure early on, that is no excuse to not continue trading the rest of the week. At some point there will be enough data to figure out what my daily profit sits at which I could possibly use as an ongoing benchmark. Do I believe I will be success? Yes. It will be a difficult challenge to increase your account ten fold in half a year while trying to minimize the chances of risk to ruin, but I do believe I have the tools and mindset to make it happen.
For credibility instead of advising entries and exits after the fact. Why don't you advise entries and exits "before or as" they are being placed. Unless the executions are pre-identified or called real time you are just wasting time and bandwidth. Leave the hindsight trading for your website, ET has enough hindsight traders as it is.
That will be done. I will be pointing out levels that I am looking for when it comes to the entries, and also the exits. When the trade is taken, I'll update the thread here as well. If further credibility is also needed, I can post a screenshot of the time the orders were filled.
This would be an example of a trade, even though I have already taken an entry. On Japanese Yen (JYM14) I took a short trade @ 12:54:14 am. Filled price @ 0.9814. I am looking at the 60 minute chart and seeing the 0.9822 resistance. Simply using the top we witnessed on April 17th. We have had a rejection today so far around this level so I am looking for a pullback. A measured pullback would be down to 0.9804, which would also be my level for exit.
Price is currently down to 0.9800. I am still in the trade, currently up $875 on 5 contracts. Going to watch if there will be a rebound here or not, if so, I will exit the trade. Just to make sure this is clear, this trade was not part of the $10k challenge. This is on a separate trading account of mine. I am just providing an example on how things would be documented. Edited: Trade exited at 0.9801 @ 2:52 AM. Good trade.
You say you believe it will be successful, but my question is: Why? This question is of particular interest as you describe yourself as "new", so without any back testing or walk forward testing, what in addition to your self-esteem corroborates that statement?
I am not new to the industry. I have been trading for the past few years full time. I am simply basing my ambitions of my prior results.
Fair enough, as long as you have a track record to lean against that makes your ambitions more reasonable, even though they're very lofty indeed...time will tell...
According to my calculations, you are aiming for the 9,900% annual return. You should have rounded it up to 10,000% annual return. One thing that I don't understand is why you are referring to it as a"challenge". Are you challenging yourself, challenging the markets, or challenging other ETers to do the same? It's also not clear what a wrecked car has to do with this thread. Is this going to be a journal where the details of your personal life are intermixed with our trades?
don't let the naysayers detract you. 10x return in 6 months is very difficult, but not impossible in futures. I wish you luck. The mind is a powerful tool, especially when you have the proper skills, and a confident mindset. Looking forward to seeing the results.