Week 2 Summary: Total trades: 15 Contracts per trade: 2 Points won/(lost): 12.00 Net profit/(loss): $1,136. Beginning account balance: $5,000. Ending account balance: $7,093. % Increase (decrease) 41.86
i posted this yesterday pm but it may not have stuck. Tking 2 contracts to 15 in about a quarter is possible by using a 2 point bracket on a 15 minute chart. How does this transition work out in terms other than a projection using two data points and a rule? I believe other things come into the picture. Monitoring for the right setup to make 2 points (long or short) is fairly common not only during the day on a fifteen minute this way but in a host of other ways. the asymptote that is intersting is how a person goes from having 5000 dollars on the line ot having almost all his capital on the line. The conventional in and out of the market combined with increasing the % of capital in the market ((Total-3000)/ Total) will have an effect. It takes a month or so to see the variety of kinds of days. I three months it is possible to see the distribution of kinds of days. The day's target is two points so only the first part of days (15 to 30 minutes or one or two bars) may be required to go through the 2 or 3 minutes to make the target for the day. This isn't the way it happens, however, so being on the sidelines before and after open is part of the snesing for the setup. A lot of people never get to 5 contracts. fewr get to trading 10. going form 2 to 15 can be done rapidly but often it is a good idea to roost at 5 and at 10 for at least the period of being able to see the variety of conditions unfold during times when more and nore of total capital is at risk. Skills are not required here nor is knowledge. what is required is experience. Now the 17% of last year looks small compared to the present profits.
Mr. Hershey's spreadsheet is not applicable to the money management method I am employing. Obviously, with his spreadsheet as an example, I would not reach my goal of $250K by year end. Instead, the spreadsheet should reflect an increase by one contract for every $1000 earned per contract after reaching $8000 in capital. Thus, if I made two points per day on each contract, I would increase the size by one contract every two weeks. Under this scenario, the account would reach approximately $250K at the 22 contract level.
Thanks for the additional rule; Obviously, I missed reading it. Anyone who wishes can update the spread sheet. I believe that after 8,000 and adding a contract every 1,000 would cause additions to accelerate and you would be adding contracts more frequently than you presently think you would. Trading 25 contracts taking what the market offers is another interesting and different approach. Often people do this and sweep surpluses each Friday.
You are confused, so let me be clear. After $8,000 (3 contracts traded), I will add one contract for each $1,000 profit per contract. Example: 3 contracts traded @$8,000 account balance 3 contracts X $1,000= $3,000. $3,000 + $8,000 =$11,000. At $11,000, I will raise the contract size to 4. At $15,000, I will raise the contract size to 5 At $20,000, I will raise the contract size to 6 At $26,000, I will raise the contract size to 7 At $33,000, I will raise the contract size to 8 At $41,000, I will raise the contract size to 9 At $50,000, I will raise the contract size to 10 and so on.....