Profitable strategy - how to get up to scale?

Discussion in 'Trading' started by T-Mex, Oct 13, 2019.

Profitable manual strategy, $7 gross 15x/day, $35k risk capital, do I:

Poll closed Oct 20, 2019.
  1. try to get backed at a trading company

    3 vote(s)
    15.0%
  2. borrow $200k to trade it myself

    7 vote(s)
    35.0%
  3. trade it through a CTA entity with a private backer

    1 vote(s)
    5.0%
  4. don't trade, edge isn't good enough to run

    9 vote(s)
    45.0%
  1. imjohn

    imjohn

    Using 35K to leverage a 3-lot ($11,666 margin per), across 8-10 instruments, 15 times per day, within a 12-14 hour time period, to Net $130/day. ($2600/month)

    Assuming a person was just trading ES, trading 3 contracts ($37.50 per tick), $130 is the equivalent of netting 3.5 ticks/day. To me, needing to spend 12-14 hours and/or 15 trades, to net 3.5 ticks seems inefficient.

    Though your post implies that you are confident your strategy is scaleable to 270K and will produce the same results. So at $11,666 per contract, you'll leverage 23-lots to net $1000/day. Obviously the $ amount is more worthwhile. But even then, 12-14 hour manual trading days doesn't sound sustainable, especially if its something you find tedious and not enjoyable.
     
    #11     Oct 13, 2019
  2. tomorton

    tomorton

    Keep it simple and have patience. If you're making at least 6% a month consistently which you are, keep doing it. You will double your account capital every year if you don't need to make any withdrawals.
     
    #12     Oct 14, 2019
  3. EsKiller

    EsKiller

    #4 edge is not good enough.

    Your margins are just too razor thin with the volatility in the US markets this year. I don't know what your method is, but $7 / contract makes me worried. I understand you are automating, but have you considered trading manually ? If you have skill, there's more money to be made trading manually. There's no substitute for the human brain and the ability to use discretion on trades.

    I dont know what time zone u are in, but why can't u wake up at 3am and trade the European session then go to work ?
     
    #13     Oct 14, 2019
    T-Mex, comagnum and Real Money like this.
  4. I say go for the trading company, if you get in somewhere good you'll have the tools to automate more of your system and to research the next one. I'll PM you two places in particular.
     
    #14     Oct 14, 2019
    T-Mex likes this.
  5. MarkBrown

    MarkBrown

    hand up ied in the road ahead, please answer question:

    question: is your entry method going with the price action or against it?

    answer: incorrectly and you're dead at the scene....
     
    #15     Oct 14, 2019
  6. Overnight

    Overnight

    You can always get a job at the local 7-11, where you get paid minimum-wage, have to stand on your feet all day, and suffer the possibility of getting shot and killed in a hold-up.

    Risk v. reward.
     
    #16     Oct 14, 2019
    MarkBrown likes this.
  7. T-Mex

    T-Mex Guest

    I'm agreeing with your post, thank you @Specterx and @qlai. In contact with a firm, we're working on details, probably too busy to update on here but anyone similarly situated who wants an intro is welcome to PM - I check the email this site is linked to about 2x/month.
     
    #17     Oct 19, 2019