What would you do if you have restrictions ... ?

Discussion in 'Trading' started by andrey_tech, Jul 11, 2005.

  1. Thanks for your smart advice. Have you ever own a power which gives you almost 250 intraday scalping trades %85 quick win, %15 accepting tighter stops loss ? What would you feel if you own such a power ? :cool:

    P.S I know uncontrolled power is dangerous. But you guys are professionals and can handle such a big power. But I am not :(



     
    #21     Jul 11, 2005
  2. vicn12

    vicn12

    If so, by now you are already a millionaire and go vacation, you won't be here typing :p

    Just say you made 10% 3 days out of a week with $20,000 capital, 6 month has 26 weeks, so, your current cash would be

    20,000 x (1+0.1)^(3*26) = $33,857,855

    Well, let's say you only has $2,000 capital, that would still make you a $3,385,785.

    Wealth starts with a dream :eek:
     
    #22     Jul 11, 2005
  3. alanm

    alanm

    andrey: The reason for the largely sarcastic response is that what you are saying you have is likely too good to be true. Make sure that you understand exactly how you will execute your trades (i.e. buying at the offer, selling at the bid, up-bid rule for some stocks if selling short, be sure your quotes are accurate), and you will probably find the fault. A common mis-conception is that you can buy or sell an unlimited amount of stock at the last sale price.

    As another example, some people see crossed quotes (bid>ask) that look like free money and don't realize that these are usually:

    1) Too small to be profitable at $0.02/share round-trip commission;

    2) Not there long enough because other people's systems have much faster connections to pick them off (which you can't tell from IB's snapshot quotes); or

    3) Are the result of stale quotes, one side or the other against which you cannot execute.


    If you still don't find the fault, go ahead and, as others said, trade small, conforming to the PDT regulations (at IB, 3 trades per 5-day period), to find out whether your system works in practice.
     
    #23     Jul 11, 2005
  4. Alan : Currently I am trading with IB and there is no problem on bid and ask prices. If you can handle 250 intraday live entry and exit calls with SL and PT included, I can proof you my %85 challange (not a single day, all available trading days)

     
    #24     Jul 11, 2005
  5. Test your system real time using the alloted daytrades under PDT

    If it works, tap the credit lines
     
    #25     Jul 11, 2005
  6. Where ?

     
    #26     Jul 11, 2005
  7. plugger

    plugger

    Wouldn't it be just as easy to contact one of the prop firms, put up your $5k - $10k, get 5 to 1, or 10 to 1 leverage, and go from there. If your system is really as good as you say, you'll be making money hand over fist and these guys will ramp you up with unlimited purchasing power. Sure you'll only receive a % of the payout, but soon enough, you'll have enough money to do it on your own.

    Rots o' ruck.
     
    #27     Jul 11, 2005
  8. Sounds good and reasonable. However I do not know if in this case day trading restriction will be removed or not ? Also short selling is too important on my system. I do not know any other first class brokerage firm than IB about the number of shortable U.S stocks. Currently more than 5,000 stocks are in shortable status on there. But they dont give more than 2:1 leverage. This explains why I seek alternatives about my powerful system.

     
    #28     Jul 11, 2005
  9. if your system uses standard indicators, try trading futures or even forex... forex gives you up to 400-1 leverage.

    But on a more realistic note...

    250 trades a day :eek:
    Even with the money you make trading... would you ever have the lifestyle to to match it?

    in my opinion nothing tops trading 1 to 2 hours and clearing 300K+ after taxes

    so be careful... your poweful system may just turn out to be a powerful suction
     
    #29     Jul 12, 2005
  10. Audrey,

    Are these paper trades? Don't assume that because you see the number, that's the price you'll get filled at. Besides, isn't there a 17 second stale quote rule?
     
    #30     Jul 12, 2005