Where can one expect to meet slippage due to size if the average trade is lasting between 3 and 15 minutes, each trade varying between -2 (for stops) and +10 NQ pts, with all entries being countertrend limit offers/bids (picking reversals)? Where would you say size starts playing a factor? 50 contracts? 100 contracts? If by using this method one was able to turn 5k into 15k in about 3 weeks, what can you reasonably project those returns to continue before the law of size finally catches up? I don't think this question is as unreasonable as the first, and am looking for an honest first-hand answer -- any takers?
Forgot to mention, the 5k --> 15k being achieved with lot sizes starting from 3 progressing up to 7 (I suppose using up to 50% of one's maximum daytrading buying power for NQ via IB margins).
You are going to get killed. The people that have the capacity to do this aren't posting on this board. nitro
5K into 1M.... Very simple way to do it... just average a 2% net weekly compounded return and you will be there is no time!
A lot of people on here seem to be lacking in economics knowledge. They say things like, "Oh great! Then in 5 years I can make one billion dollars!" What they fail to realize is that, as your size grows, you start pushing the market around. It is one thing to scalp points with 10 contracts but what happens when you trade 500? You're going to slip the market anywhere from .25 - 1.00 depending on the time of day and volume. This is synonymous to people comparing investing to active trading. You can make 500% returns when you actively trade because that is actual work. Just shoving money into a stock and riding it means you aren't actively managing that account. It is a lot easier to make a million than it is to make a billion. That's why hedge fund managers and other large mutual funds that get very large have a tremendous problem with managing assets. Just the sheer size of the money involved means that, if they pull out of a stock from their portfolio by selling it, they're going to tear right through many many levels of bids. Please keep the "well you don't trade" comments to yourself. One doesn't have to trade to have a firm understanding of the mechanics behind economic principles. And, yet again, for the record -- I have traded. Thank you.
Nitro, I don't get it??? Why is he going to get killed trying to take a 100k account to 250k??? As for the 5k to 1mil, I don't think he was implying he was going to attempt it -- he was asking for the money managment method that the guy was speaking of... PEACE and good trading Nitro, Commisso
Jonny, As far as the best method to use to try and turn 5k into 1mil -- I would say that trader was living in a state of illusion... As far as you are concerned -- I really cannot understand the sudden dilema??? If you were able to turn 20k into 100k then why do you suddenly need a road map to turn it into 250k? What has changed? You cannot tell me that you have hit size resistance trading a 100k account in the ES minis... Why not just continue with the same position sizing module that you used to get where you currently are?
I did at first also -- I think he was quoting someone else that claimed to know of a method to do it in 80 days with little risk 100k into 250k is very doable, I just don't think I would try to be doing it in 80days though Whats the hurry -----> slow and steady wins the race in this game... PEACE Nitro, Commisso
Hindsight being 20/20.....you could have turned $5k into $200,000 overnight last week with some o.t.m. EDS Sep puts. THere actually was some open interest b4 this ball went over the back wall for a home run.........