DB, I totally agree with you, making 100K and than losing 50K, even if the net is +50K, it is really bad trading and will inevitably lead to complete loss of capital. (unless the guy has a few saints on his side, hehehe)
@Fundlord To your question: the behavior of index futures is dependent on the contract and timeframe you wish to trade. As your frequency approaches zero, you may find that the old adage that "markets move toward size" doesn't apply all that well in some cases. If you've been trading FX, I doubt you're even really interested in microstructure, so if you wanna know the dynamics of an index future you as mine as well just look at a chart, your guess will be as good as anyone here's. Charts are subject to interpretation in my opinion, so I'm not gonna discuss dynamics at that level. With regard to your big swings. As someone said earlier "live by the sword..." If that's how you want to trade, then go for it. If you want to start managing other peoples' money as you stated though, I would encourage you to reign it in a bit (a lot).
I am highly, highly doubtful changing markets will change anything. If you lost 50% of your account in a month you are not adhering to correct risk management. Have a daily loss limit, take less risk as you lose more. Review your trading, see if you are making any mistakes, getting into impulsive or emotionally driven trades etc.
LOL, first seven years of day trading my title would have been "Being Killed in Index Futures". Coming from slow moving stocks to highly leveraged futures is like the tortoise and the rabbit, no wonder the tortoise lives to be over hundred years old, he learned to go slow and don't take dumb chances of moving a foot before knowing if it can be life threatening risk. And rabbits have little defense other than speed, but many more rabbits in the stew pot than tortoises. LOL, managing OPM? Day trading? There are so many limits that will shut you down if you want to get large, most larger fund firms have limits not based margins, it is based on the 3-6% management fees they get whether the account makes money or losses it, most of the larger firms don't have or severe limits of how much is allowed from day trading. Day trading normally risk the very most than possible gain. The OPM you read here for day trading is very small funded accounts and they have very tight limits. Management of larger funded accounts of 20 million and higher are longer term trades with risk being before anything to ward off losing management fees, and firms are very guarded on amount that can be margined. Size is difficult at some point, not like a fund going to put on 5,000 contracts of live cattle of much size of smaller size, so they are doing much more currencies, energies, financials, metals and Indexes, and all are related to each other. And why it is easier to get better trends in grains, meats and softs, spreaders love these markets as they often have reoccurring patterns cause of being grown or raised and not as much as on governments. Do three years of consistent day trading, get your CTA license and advertise, then you can do whatever you like, but dealing with the public is one huge pain in the arse. Starbuck time !!!
Here's what typically happens: Traders with insufficient capital see the possibility of trading very short term charts with huge amounts of margin for big money. The truth of the matter is that under-capitalized traders have it exactly backwards. They should be in "no margin" situations investing money long term until they have enough capital to step into the short term ring. Well-capitalized traders are the ones that can set their stops according to the market and its noise and forgo losing big. They don't have to hit a home-run either with high margin. They can go in and day trade with little or no margin and make plenty of money to cover their needs without risking huge amounts relative to their financial position. Under-capitalized traders need to be "no margin" long term investors. Well-capitalized traders can be in the market on any time frame they wish.
The OP has shown not to be interested in how to properly trade the indexes. But "how to make a killing". My suggestion buy a gun. Only kidding - about the gun.