I think you are shit stirring.... Read what I said, I'm paper trading and using 1 x contract for a benchmark/testing. And why shouldn't I put SPI and ES in same sentence? They may be different contracts etc, but for comparison purposes they trend/behave reasonably similar so why not. As well, you are jumping to incorrect assumptions me thinks, I never disclosed how or what method I trade, all I said was on one contract my system pulls in approx $600 per week -paper trading. However you never answered my query, "what do you believe is achievable" Thanks
Maybe I'm using the incorrect word, not paper trading, SIM trading, using IB and SierraCharts and automated software. The original concept had its roots in Amibroker which I originally coded from, but all my own ideas, not borrowed. Have been designing systems for about 9 years.
I don't know what your strategy you are trading. How many trades are you executing to achieve 5 points? For a discretionary trader 5 points is very low. The problem with the SPI is scaling is an issue.
At this point of the discussion how many trades the system makes is a distraction, the question was, after all commissions, slippages, drawdowns etc, is $600 per week on 1 x contract reasonable. Being the SPI this is about 9% of the daily range assuming 55 points was the average. I haven't tested this but it sounds (55points) about right. At the moment my computers are shut down as I've just recently driven 5200km's across Australia and in the process of relocating job + house. I'm not trading discretionally, do you think a discretionary trader can make more than a automated system? But again, what do you consider would be the norm, lets assume for you, you are trading 10 contract positions at a time as you think 1 x position is ridiculous. Do you trade discretionally? Thanks
This is a very general question. Yes and No I am a discretionary trader. My trade size clips are 20 lots with a max of 100 lot day limit. I work for a prop house and they take a % of my winnings
that's a young mans game. For every 1k I made I lost a week off my life expectency. scaling up only makes it worse. Once you have enough money, you don't have to ask "How many points is reasonable?" You decide how many points is reasonable. Depends more on how many bad decisions you have made, rather than what these young whippersnappers think, which is some kind of bullshit like, "Depends on what the market will offer you." The older you get, the wider the spread.
Correct. YOU DECIDE what is reasonable. And to avoid disappointment YOUR methods, techniques, and markets/instruments activity must be considered. You trade to make money. Period. Good trades are good trades. Bad trades are bad trades. I have monthly and annual monetary goals, not daily and certainly not per contract or per instrument. 83.33K per month is one million annually... 83.3 / 20 trading days per month = $4167 per day. What's reasonable for YOU?? That's what matters!
I will be holding overnight which I'd assume you wouldn't trading discretionally, would this be correct? I'm guessing that overnight once I go live would possibly only be safe for 10 or so points max. Would this be a fair assumption? I intend to start off with 1 x contract then slowly ramp up and drop off leverage proportionally once the account grows. Thanks
I only day trade. The overnight market is very illiquid and spreads are wide. With a 1 lot you wont have any issues. You may have to cross over 5 points to execute a trade.
Traders' only decision is whether to get in or get out of the market. Everything else is out of their control. If I "decide" one day to make 5 points and I don't, is that because my "decision" wasn't decisive enough? No, it's because my trades weren't in synch with the market's direction. I don't see how that is "some kind of bullshit", it's more of a recognition that the world isn't oriented around me and my desires.