Over the next few months, I plan to repeatedly post my paper trades in this same thread. If they are successful, they will serve as semi-permanent of online âproofâ of my good results. If they are not successful, then oh well, I havenât lost any real money with these trades. I will also be posting a summary of my paper trading results on this webpage: http://members.home.com/bobdek/trades.htm I have been studying trading possibilities for the Nasdaq 100 index for the past several years and believe I have found something that looks promising. It involves trading only once or twice a day and holding for a longer period of time, but not holding an overnight position. I realize nobody will believe me, but I think it is possible to make something between 0.5% to 1% average return per trade. And that would double to 1% to 2% average per trade using double margin power. That would be an AVERAGE return. I realize those types of returns sound impossible to experienced daytraders, but Iâm not trying to convince anyone of anything at this point. This strategy involves trading only in a financial instrument that tracks the Nasdaq 100 (NDX) index. This would include QQQ stock, or Nasdaq futures, or even the underlying basket of 100 stocks that represent the Nasdaq 100, etc. I am not trying to sell anybody anything, and I am not promoting any trading courses. So why am I going to do this posting? Good question. I am mainly doing it to prove to myself that this system actually works (at least in theory) when repeatedly put to use over long periods of time. I want to be âlocked inâ to my paper trading decisions so that I can properly evaluate them, that is one reason for publicly posting them, so that I am âcommittedâ to those decisions. If it works out, thatâs great, I will have proven something to myself. If they doesnât work out as planned, then I will have learned something without losing any money. My other reason is to generate a semi-permanent online record of my paper trades that I might later use as âproofâ to other potentially interested parties, if it turns out that my trading system works. I readily acknowledge that I am not an experienced trader. I have traded a bit using several online brokers, including a daytrading firm that offers me a Realtick interface. But I am not very experienced. If my system were to prove highly successful over the next 6 months, then the fact it is publicly posted might be my âproofâ to other interested parties that my system works. And at that point, perhaps I would have an opportunity to work with a much more experienced daytrader (or even a firm) to use my paper plan to generate real profits, and utilize the skill of an experienced daytrader in conjunction with my plan. Because an experienced trader would know much more than I do about avoiding slippage, minimizing costs, wating a few seconds to get a slightly better price, etc. BELOW ARE MY ASSUMPTIONS ABOUT ALL OF MY FUTURE TRADE POSTINGS 1. When I post either the word âLONGâ or the word âSHORTâ, that means that my paper trading plan would take either a long or short position in an underlying Nasdaq 100 Index instrument like QQQ, Nasdaq E-mini, etc. The trade is assumed to have occurred at that exact time, whatever the âtimestampâ on each message is will be the time I assume the trade is to have taken place. 2. It is assumed that the position will be held until I post the word âEXITâ. If I do not post the word EXIT, then it is assumed I exited the position at exactly 4 PM at the market close. No positions will ever be held overnight. 3. The ENTRY level will be assumed to be the average of the OPEN and CLOSE price during the one minute period that I entered the trade. For example, if the âtime stampâ on message says I posted it at 9:45 AM, then I will look at the opening and closing prices for the 9:45 AM minute posted on my Realtick chart. The chart symbol for the index is NDX (or $NDX.X when using Realtick). So if the opening NDX level for 9:45 AM was 1530.30 and the closing level was 1530.70, then I am going to assume I entered the trade at a level of 1530.50, which is its average. The same holds true for the EXIT level, it will be assumed to be the average of the open and closing levels for the âtimestampedâ minute of that exit message. 4. I fully realize there are inherent problems with this type of paper trading, given that you cannot actually trade NDX, you can only trade something that tracks the NDX. And I know my trade is not posted at an exact second in time, and that the NDX prices reported are about 15 seconds behind the QQQ prices, and that there are transaction costs, and slippage, and all that other stuff that makes daytrading so complicated. But it is not my intention to teach a class in daytrading, I am posting this for myself, to prove something to myself. And if this system produces a high enough average return per trade, then those things like slippage and transaction costs can be overcome, especially if I had assistance from an experienced trader. 5. I would always use margin to double the effect of any return. 6. If I post no message on any given day, that means I chose not to trade on that day. 7. I am not going the count the return on any day where there is an extremely MAJOR UNPLANNED event that significant affects the market. Examples would include a major terrorist attack, a sudden unexpected cut in interest rates, etc. Some will say this is âcheatingâ, but you have to realize I have another full time occupation and do not follow the market every minute of the day. If I had actual real money at stake, I would follow the market every minute that I had an active position. But I have to be realistic, this is only paper money, and at this point I still other full time (self) employment that consumes my days. And it works both ways, because if I have a short position, and the market drops 10% due to a terrorist attack, I am not going to count that as a gain. The key determining factor is that it has to be an UNPLANNED event. An interest rate cut after a Fed policy meeting does NOT count as UNPLANNED event because everyone knew a meeting was taking place. 8. I do not plan to post any reasons or explanations of why I chose to do a certain trade, and I do not intend to reveal my overall strategy. You are of course free to comment, but it is not my goal here to discuss strategies. So with all of that in mind, I am going to begin posting my paper trades, and the âresultsâ achieved. Of course anything can happen in the beginning, a run of bad luck could get me off to a bad start, but I am hopeful I will see paper success with my strategy over a period of time.