I could get to $1 million in 3 months easily.......
If I start with $10 million at the beginning
If I start with $10 million at the beginning
$1,000,000 in 3 Months
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Haha nice try fellas. As a good family friend to the president and CEO of a regional life insurance company, I can tell you first hand this does not work. I know it was half in jest but I want to dispel this myth, and tell you that life insurance companies aren't that stupid.
He told me this story once about a guy who tried to fake his own death, the benefit was like $1.8 million. Long story short, they found him 7 years later in outer mongolia and the authorities had him exdridicted[sic] back to the US where he currently sits in prison.
The CEO told me they still saved about $1.3 million through the whole ordeal, rather than paying the death benefit up front.
Quote from rtstrading:
Vegas baby, Vegas.....good luck!
First round is on me. You buy the call girls.
say, if I trade ES only:
ES value is $50 per point.
If I were to make $1mill in ES, I would have to earn 20,000 points.
divide that into 60 trading days, it comes out to 333 points per day.
The average range for ES in the last 20 days is 11.61 points. (say, round that to 10 points.)
If I am really really really good, I can pick off 50% of the daily range, i.e. 5 points per day.
divide 333 points into 5 points per contract, I will need to trade 67 contracts at a shot.
At $4k margin per contract, I will need $267k in capital.
mmm... I need to work at this a bit more.
ES value is $50 per point.
If I were to make $1mill in ES, I would have to earn 20,000 points.
divide that into 60 trading days, it comes out to 333 points per day.
The average range for ES in the last 20 days is 11.61 points. (say, round that to 10 points.)
If I am really really really good, I can pick off 50% of the daily range, i.e. 5 points per day.
divide 333 points into 5 points per contract, I will need to trade 67 contracts at a shot.
At $4k margin per contract, I will need $267k in capital.
mmm... I need to work at this a bit more.
You're assuming it's linear from the start. What would actually happen is you'd start with a 'normal' account then for every bit you made off the profits you'd add contracts.
So, actually, near the end, you'd be trading 400+ contracts (using all your profits built up) as your were closing in on the 1M of profit. So in the beginning, you'd need every last stinking point you could eekk out to get started. But by the end, if you still had a 333 point per day total, you'd only need three ticks at 500 contracts. A lot less than the 5 points per day you stated. I'm not smart enough to do the math from the start, but it's that whole start with a penny, then double that, then double that blah blah blah kind of stuff.
Also as an example, IB only needs $1969 as of right now for intraday ES initial margin funding, not 4K. And that's for every schlub that opens a 10K account.
The bitch would be you'd work your ass off with small contracts working up to the big trades. Then of course, with 300-500 contracts on is when you'd lose 5 points three times in a row and wipe yourself out.
Yes! I tested buying the 0 to 7 turn (see http://sputnick5.www8.50megs.com/) on 1000 stocks from 2000 to 2005 -- a total of 5000 stock-years -- and got the attached equity curve.
Steve: Thanks for pointing that out.
I have reworked the numbers. Do they make sense?
Starting capital: $50k
I will use up to 55% of the capital for margin.
Assume ES daytrading margin at $2k, i.e. I can trade 13 contracts on day 1.
I have lowered the profit target from 5 points per day to 4 points per day.
i.e. my first day profit target is $2,600.
I will add the profit to my capital, and I can increase my contract size accordingly.
On the 20th day, I should be trading 37 contracts, and the ending balance will be $142,400.
On the 40th day, I should be trading 107 contracts, and the ending balance will be $412,200.
On the 60th day, I should be trading 312 contracts, and the ending balance will be $1,199,800.
Is it possible to trade 300 contracts with one click of the mouse?
I have never done it. Have you?