Futures: Make $15,000 a day

Discussion in 'Trading' started by TheCaymanIsland, Mar 19, 2009.

  1. Pekelo

    Pekelo

    Exactly. So you should have asked either a % (can I make X% a day?) or a per contract per day(can I make 3 ES per day?) question.

    Throwing out a desired amount is meaningless because it really depends on the answer to the above questions and the aviable capital and the leverage used...
     
    #21     Mar 21, 2009
  2. Moving averages and trends
     
    #22     Mar 21, 2009
  3. You might want to rethink that one.:)
     
    #23     Mar 21, 2009
  4. Okay, so if I trade 1 future contract per day, what % can I expect to make using an algorithm that uses moving averages and trends? Available capital and leverage are basically unlimited.
     
    #24     Mar 21, 2009
  5. Usually, traders / managers are paid 2/ 25 / 35 / 44 answering these questions...:D
     
    #25     Mar 21, 2009
  6. rluser

    rluser

    It sounds very much like the percentages are unlimited.
     
    #26     Mar 22, 2009
  7. Pekelo

    Pekelo

    The question is still unclear. My response was about the return per contract, not using 1 contract. It is really a simple math question, knowing:

    1. Average daily return per contract.

    2. Capital in the account.

    3. Leverage used.

    You change any of these 3, the answer changes to your question. Let's say you make average 3 ES per contract on a 10K account using 2 contracts, that is 3% daily return. If you start using 3 contracts, the daily return goes up 50%, so it will be 4.5%.

    If you decrease leverage by either adding more money but not increasing the number of contract used, or decreasing the number of used contracts but not changing the capital the daily return in % will drop...

    We CAN NOT know, what kind of average per contract return your algorythm can do. You are the only one who knows that, and if you have a desired % return in your mind (or a fixed dollar amount), you just adjust the leverage part of the equation and you will get how many contracts you need to use to reach that goal.

    So let's say the algorythm does make 3 ES per contract daily. That is $150 but since you wanted 100 times that, you need to use 100 contracts to make 15K daily. The risk part will be decided by the leverage..
     
    #27     Mar 22, 2009
  8. Good post. The answer for the OP is that he must know the expectancy of his trading system per contract traded, assuming on a daily basis. He can then divide 15K by that to estimate the number of contracts needed to achieve that objective.

    Leverage does not matter as long as his capital is large enough to cover margin plus maximum intraday drawdown. He claims to have unlimited capital so these issues are irrelevant.
     
    #28     Mar 22, 2009
  9. ammo

    ammo

    i suggest in your tests you break the day into 3 parts and if you are up ,the nite session,the es performs differently at different times of the day,very low volume choppy from 11-12:30 cst,higher risk in this time zone,quicker 3-5 point moves 8-9:30,and at the end of the day we can see some 15-20 point moves, those 3 timeframes each give you a different perspective on your p/l and the amount of size to put on Are you saying they have a program that is drawing tl's for u and you are using agreeable ma's to get into and out of trades?
     
    #29     Mar 22, 2009
  10. Thanks Pekelo. So let's say I'm trading ES and NQ Futures. I have 500,000 in the account and I expect to bring in an average of $50.00 a contract. Then what sort of risk parameters should I set up if I expect to make $15,000 a day. I should obviously expect to trade 300 contracts. Is the $50 a reasonable assumption though for an algorithm?
     
    #30     Mar 25, 2009