Question: starting with a $5k account, how far could a decent trader run it up in 1 year, and what kind of maximum drawdown(s) would you expect during the run?
I put $10k in a new futures account at the beginning of this year to test that theory. My first three posts here were my blotters. I got TT problems during my first week, and since I ended up getting filled on a "stale order" and only finding out when I was massively offside later in the day it ruined the experiment. I had another set of problems in week two so canned it. I might be motivated to try again in 2011. (with a side account of $10k, if I can somehow assign trades from my regular account to the side account pro rata for the size, so that I'm not messing about with two platforms) I didn't continue this year as the TT problems would mean no possibility of a proper track record. To be honest, this is more for me to see what is possible, and to benchmark my own trading. I wouldn't publish it for what I hope are obvious reasons. It would be fun to do it in 2011, and have the results, and then do it again a few years down the line to see the differences. You'd need to try and factor in volatility also - simpler to run up a small account in 2000 or 2008 style conditions - but also easier to lose it if you don't know what you are doing. So the answer is: how well can you do? Why not get yourself a $5k sub account in 2011 and see for yourself?
Very well, I started off daytrading after swingtrading for years with a puny 5k acct, just trade 100 shares aim to lose no more than 75 to 150 bucks a day and you will be trading for about 6 months assuming you'll lose everything
Btw get ready to get your $$$ leeched out of you in commisions by prop forms, so do your research pm me I'll recommend a few good ones
Heh good point, that one will probably be hard to beat, although it might be possible to beat him on a risk-adjusted basis, I think he dropped 30% in one day during 2000.
Couple thoughts depending on the person. Max drawdown would be the entire amount which people do. The unfortunate part is to be left with not even an equity postion after trading through the entire amount. So if you're going to at risk say 1k (or some x$ amount) on each trade, hit 5 losers in a row, sell them and keep trading, one might be better off holding some losers and quit trading. Another approach is trade the entire 5k on each trade. With a total drawdown of 20% on the entire account. Conservativly enter 1/2 pos, then another 1/2 with a target loss of say $300 on each trade. If you miss three times and hit your 1k loss. quit while you still have 4k. Refund your account with another 1k. Trying to get even after say a 20% drawdown is hardwork esp considering the limited capital to work with. Mentally you're beat. Wait for a better market or more study. ---------------- How well can you do is relative to your style of trading and the amount of energy. Zanger worked his but off and had the market on his side.
Hillary Clinton turned $1k into $100k in just one year. http://www.chartpattern.com/cf/images/new/articles/40greatest-trades-article.pdf