Turning $5,000 into $1,000,000

Have to see both sides of the coin -- what are the "methods" drawdowns???

 

JonnyT,

One additional question- how many trades would you make in that 12 month period? Given a 50% win/loss rate, and a 2:1 risk/reward, we can tell that you have an expectancy of 0.5- for every $ you risk, you win an additional 1/2 dollar.

2 trades- each trade risks $1000. Trade 1 loses $1000, trade 2 wins $2000, you come out $1000 ahead. How well you do for the year is dependant on the number of trades. You make $500/trade at that level.

You might want to run a simulation for various risk levels. Start with risking 1% of account equity per trade, then bump it up to 1% of equity, plus 10% of profits. See what happens.

Commisso is right- you will encounter a level of drawdown at some point- how much can you handle? 10%, 20%, 50%?

Van Tharp has a neat trading game cd- it provides you with systems of differing expectancies- you set the risk/trade levels, and see how you do. There are 10 levels in the current game.

I'm not associated with IITM, I just like the game.

Regards,

Kevin

 

I took the liberty of quoting specific sections. Seriously, you are kidding me. Step inside the Bid/Ask, start making markets, and tell me where you stand. I think you will be lucky if you hit ten contracts. Of course, why should I even respond, this thread should be titled "Lost Backstreet Boy attempts to trade!!!"....

 

How about you feed us total BS, so we never know how long it takes? Sounds good to me. I do not think you would ever have the cods to post any editable results. However, perhaps that is just me?

 

lmao

 

Just out of curiosity, why do members allow the subject of so many threads to become centered around aphexcoil?

--Db

 

Well, when you have such far-reaching knowledge as this young lad, many threads will be centered around you as well, Young Jedi.

 

I would love to learn how to do that...since there are 250 trading days in a year, that allows someone to do this system 3 times turning $15K into $3M...wow, by the time I am ready to retire I should have almost $100M from investment of about $500K! Just one thing, what kind of magic potion is needed?

 

I'll pass, thank you.

--Db

 

Well, when the opening post includes a sentence that's talking about turning 5k into 1M in 80 trading days with little % risk, then I would say that this thread could easily get centered around, something/someone else, other than the original topic.