Is it possible to consistently make $5000 a month trading 2 index futures contracts per trade ?

Discussion in 'Index Futures' started by etradeqeko, Aug 8, 2018.

  1. Turveyd

    Turveyd

    Goes in cycles, Index's YM especially is hot at the moment, sometimes it's FX's, sometimes it's Oil, not checked Oil recently but the FX's I watch are pretty lifeless and rangey, not good for Momo trader, but they'll be hot again soon, so switch back to what's best at the time.
     
    #91     Aug 9, 2018
  2. Jack1960

    Jack1960

    Making $5k a month is easy. Have been doing a lot more, but you have to know what you are doing. It takes a good mentor or a very long time to learn
     
    #92     Aug 9, 2018
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  3. trader99

    trader99

    Another good day on sim all using 5 lots, which is not a crazy amount.

    Intraday:
    NQ $964: Good except I closed all 4 lots and kept 1. Then I let it ride. It went against me like crazy then finally came back. Bad! Bad! Next time time close everything out at once.

    ZW $241: Perfect daytrade. In and out.

    Overnight:
    GC $878: I don't count that because I was holding it overnight. It was one scary mofo ride. Swing trading futures is too scary. Equities is fine. This is not my style. I rather go in and out. None of this scary holding.
     
    #93     Aug 10, 2018
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  4. _eug_

    _eug_

    Swing trading futures is where the money is in my opinion but it takes a toll on your sleep for sure.
     
    #94     Aug 10, 2018
  5. trader99,

    Good trading,

    For your SIM trading, how much you start your capital balance with?
     
    #95     Aug 10, 2018
  6. I would say absolutely not. For one simple reason. You are starting at your desired earnings and working backwards from there.

    There is no scenario where you can put yourself into that position as a trader and succeed.
     
    #96     Aug 11, 2018
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  7. southall

    southall

    It is not realistic with just 2 lots, lets take YM as an example:

    2 YM lots = $10 a point. So you would need to net +500 dow points a month.

    With a 2:1 profit factor. That would mean:
    +1000 pts profit and -500 pts of losses to net +500 pts

    Even with a 3:1 profit factor. That would mean:
    +750 pts profit and -250pts of losses to net +500 pts.

    Both of those scenarios are extremely hard to pull off, even harder after commissions. And if your profit factor is below 2 even harder still. Directional trading is difficult, and trying to rack up +1000 pts or +750 a month on the plus side is extremely unlikely, except maybe when the vix is above 30, but that is rare.

    That is why i said trading 10 contracts in order to hit $5000 is more realistic in most market conditions, then you only have to net +100 pts a month.
    eg +200 pts in profit and -100 pts in losses nets +100pts
     
    Last edited: Aug 11, 2018
    #97     Aug 11, 2018
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  8. 100% true....picking a specific target kills you. Just trade the day and take all good trades and make what you make. One month you will do really well, another so-so, maybe net loss one month. But if the market is giving you great signals all day you stop when you have $250 for the day? If you are tkaing loss after loss, you keep going until you hit $250 for the day or take even bigger losses?

    Amatuer stuff.
     
    #98     Aug 11, 2018
  9. schweiz

    schweiz

    It all depends of which example you take. I use the same logic and calculations that you took but use the ES:

    It is more realistic with just 2 lots ES as an example:

    2 ES lots = $100 a point. So you would need to net +50 ES points a month.

    With a 2:1 profit factor. That would mean:
    +100 pts profit and -50 pts of losses to net +50 pts

    Even with a 3:1 profit factor. That would mean:
    +75 pts profit and -25pts of losses to net +50 pts.

    With average 20 trading days you would need:
    • netto 2.5 points a day
    • 5 points a day with 2.5 points losses a day with 2:1 profit factor
    • 3.75 points a day with 2.5 points losses a day with 3:1 profit factor
    If you use a more refined strategy you could make it much easier and with less risk:
    If you can make netto more than 30 points in the first month (so average 1.5 points a day) and add that $1500 profit to your trading capital, you can trade 3 contracts intraday (25% of full margin). From that moment on you only need only 33.33 points a month to make $5.000.

    All depends of how patient you are and how much money you have available:
    $5,000 margin per contract, trading capital $5,000, will give you these profits per month if you reinvest your profits, RT $5 and slippage 1tick in and 1 tick out:
    upload_2018-8-11_19-52-11.png

    $2,500 margin per contract, trading capital $5,000, will give you these profits per month if you reinvest your profits, RT $5 and slippage 1tick in and 1 tick out:
    upload_2018-8-11_19-53-45.png

    $1,540 margin per contract, trading capital $5,000, will give you these profits per month if you reinvest your profits, RT $5 and slippage 1tick in and 1 tick out:
    upload_2018-8-11_19-55-35.png

    I don't wish to discuss if you or x % of traders can do this. I also don't say that I can or cannot do this. I just give the mathematical outcomes.
    Do the math to see what is realistic for you, and adapt all the parameters. Only then you will have a clear view on the potential, or the lack of potential. It is much better than discuss, without any proof for you personally, what is possible or not. What is possible or not is different of each human being. Calculate the probabilities based on your own abilities, not on the average abilities of millions of other people.

    The average salary for the entire world population is far lower then your salary. With the logic many people use it would mean that the salary that your earn is impossible to earn as you are maybe 300% higher than the average salary based on the entire world population.
     
    Last edited: Aug 11, 2018
    #99     Aug 11, 2018
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  10. Howard

    Howard

    Obviously, since you have to ask, it's not possible and far from it.

    The key for trading success is consistency with little to no drawdown, no withdrawing of money and scaling up as your account grows and eventually keeping size fixed at a 'high' number of contracts and risk reduced. That way you're no longer faced with having to make XXX dollar on 2 contracts per month or 'trading for a living'. Instead, you're pulling home consistent returns with a large amount of contracts made possible by your trading profits. You're rich and getting richer month by month.

    Sadly, it's not a progression most would be traders will ever achieve..,.
     
    #100     Aug 11, 2018
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