How much money can you make trading electricity futures?

Discussion in 'Commodity Futures' started by Con1991, Jun 2, 2020.

  1. Con1991

    Con1991

    Mostly 30 Year treasury bonds and E-Mini Nasdaq 100 on that demo platform. It does seem to me, realism aside, people on here are too quick to be pessimistic on here. The OEC is a solid enough platform that would not be prone to the same kind of faults that other platforms would be. As I said, it does rely on live data. The others I'm not sure do.
     
    #41     Jun 4, 2020
  2. dsch11

    dsch11

    Did you trade outrights and not spreads then? If you used market orders it should be fine but if you used limit it most likely isnt realistic.
     
    #42     Jun 4, 2020
  3. Con1991

    Con1991

    No I traded mostly spreads. And only ever Market orders, never Limit orders.
     
    #43     Jun 4, 2020
  4. Sig

    Sig

    I would recommend doing a little more research into the concept of risk adjusted returns. It's possible to make $23M off a $1M base pretty much every single day trading a high leverage product like deep OTM options. But you're going to have to blow up that $1M account a couple hundred times on average to achieve that, so at the end of the day you're deeply negative.
    What most pretty much all traders who are successful over time care about isn't how much they could make per day/month/year. It's about obtaining a given return for less adjusted risk. For example, right now if I could provide a genuinely risk free return with the same risk profile as US Treasuries that yielded a 5% return I could have billions in AUM in a heartbeat...that would be an utterly spectacular risk adjusted returns given Treasuries are yielding sub 1% at the moment. On the other hand if you could demonstrate a real live money account where you made $23M off $1M in a month buying deep OTM options, you would receive a collective yawn and be ignored. You're just a lotto winner and they're not only not terribly interesting but we're guaranteed of having some random person in that position every so often so they represent nothing that can be reliably done long term.

    So homework assignment for you, do a Google search on "modern portfolio theory" and "risk adjusted return" and spend an afternoon reading about them until you really get the concepts. Then try paper trading again from a base that reflects the trading capital you really intend to deploy, and do that several times. Then try to trade real money at about 10% of what you plan to deploy for several months. Then and only then deploy your capital at scale.

    That all requires patience, but your golden opportunity isn't going anywhere while your hard earned savings very well might be if there's even a single error in your thought process. And believe me, we all have lots of errors in our thought process.
     
    #44     Jun 4, 2020
    dealmaker likes this.
  5. bone

    bone

    Are you “spreading“ the NASDAQ-100 against the 30 Year Bond?

     
    #45     Jun 4, 2020
  6. Con1991

    Con1991

    No I never did that spread. I was doing calendar spread trades mostly, but also some intercommodity spreads as well.
     
    #46     Jun 4, 2020
  7. Tradex

    Tradex

    Can you post a simple screenshot of these completed (and highly profitable) trades?
     
    #47     Jun 4, 2020
    p0box4 likes this.
  8. p0box4

    p0box4

    What was the starting balance, how long did it take you and what size did you trade?

    Something is not right here, you make it sound way to easy.
     
    #48     Jun 4, 2020
  9. Con1991

    Con1991

    The demo account I was using expired in March, it was a two week trial so I have no screenshots unfortunately.
     
    #49     Jun 4, 2020
  10. Con1991

    Con1991

    50k was the starting balance, and this was over the course of two weeks before the demo account expired. It was Calendar spreads I was trading, and size was an average of 100 contracts per spread.
     
    #50     Jun 4, 2020