$1,000,000 in 3 Months

Hi Tums,

I found another simpler way to get to your objetive, 50K to 1 MM in 3 months just following the signal I've been tracking since the begining of this year.

These are the steps I followed to get there.

1. Using Optimal f positioning strategy as a way to charge my position.

2. Trading NQ, ES and YM simultaneously.

3. Following www.tradingpro.com published trades from March 6 till June 6. (Your requiered 3 months)

4. I imported those trades to MSA Software, to analyze the optimal positioning strategy. (Optimal f)

This is the result I got.

50 K ended u$s 936,110 in 3 months. The maximum was us$ 1,694,569.

I'm not sure how MSA implemented the Optimal f, but I'll check it out and get back.

Take care

Dan





Quote from Tums:

Thanks for your suggestion.

I am reading Ryan Jones's book. He has a section on explaining why Optimal f is great math, but useless when it comes to practical application in trading. (pg. 67)

In the book he is proposing his invention -- the Fractional Ratio method. I should get to that chapter by Sunday evening.
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The more I read, the more I realized how little I know.

The more I read, the more confirmation I got that this is achieveable.
 
only way i see this happening is getting great leverage for both intraday and overnight, and having some luck. or just gamble big on options. i actually know a guy who made a million in a month off of like 80K account trading options.
 
I just want to serve notice that this thread is not closed, the idea is not dead, and that, given what we have learned in the past 6 months, your revised input is welcome.
 
Quote from Tums:

I just want to serve notice that this thread is not closed, the idea is not dead, and that, given what we have learned in the past 6 months, your revised input is welcome.
More...
Nothing wrong with this thread!

Did you trade? Where is the new car, hot chicks, and condo?

Damn.

If you did not succeed, the only possible reasons must be:

1. You did not REALLY want to make a million and therefore no million.

2. You did not follow Hershey's directions exactly as described by Jack.

What else could there be?

But hey, tomorrow the market opens again at 9:30 EST and if you REALLY want to make a million by the end of summer, size up and think positive!!

Best of luck!
 
50,000 -----------------> 1,000,000

your looking to make 20 times the starting capital in 3 months or 60 trading days.

available derivatives:

1) options
2) stocks
3) bonds
4) foreign exchange
5) futures

the greatest degree of leverage of the above is foreign exchange. Where leverage of 400:1 is available, standard leverage is 100:1. Will let you control 5,000,000 in trading capital. Lets say only half the equity is used in standard leverage. 2,500,000. 100,000 lot size equals 25 lots. 1 pip on usdjpy is 9.17 dollars on 100K standard lot. 25 times 9.17 equals 229.25 dollars per pip. The spread is 3 pips or 690 dollars for entry and exit.

The daily oscillation is around 75-100 pips or 23,000 dollars, one daily oscillation against you will wipe out half your capital. The greatest moment of escape is during a price slide. A price slide is where the price moves unidirectionally and does not retrace secondary to a news event and your entry is protected on time basis to a certain degree. Price slides tend to occur at resistance and support points. But entering at any other point in the middle of a daily or weekly trading range, your stops will be hit on a probability basis.

Based on past behavior of the usdjpy it can have a 500-700 pip range on a monthly basis. To expect something more then previous behavior pattern goes against probability. 700 pips times 230 dollars per pip equals 161K a far cry from a mil on 1 standard lot.

If you used full equity on 100:1 basis you would be at 50 lots or for a 700 pip move 320K. You would need 3 moves or more to get to a mil. On a 3 month basis how often do 3 700 pip swings occur. The moves become protracted and less likely to happen you might luck out and get 1 full move and partial retrace. This scenario is where lot size is fixed at each decision.

So on a intermediate term basis its unlikely your goal will be met. 4300 pips, if your correct on daily direction and able to pull out 50 pips per day. And your correct 100% of the time on 60 trading days. Your only at 3000 pips or only at 750K or so. The probability of making 60 trading decisions and being correct 60/60 times is unlikely. Your more likely to be correct on few decision making points in a price vs time point of view.

Options and stocks and bonds offer less leverage and the inability to have volatility in present market conditions will make it less likely your target will be met in these derivatives.

If your able to have have high W:L ratio, and your able to pull out 50 pips per day. And keep using maximum leverage and increase lot size as account will let you.

Your equity curve will move up 23K per 50 lots on the first trading day. And will let you control another 23 lots on the second trading day.

1 50 23K
2 73 33.4K
3 106 48.6K
4 154 70.9K
5 225 103K
6 328 150K
7 478 219K
8 697 319K
9 1016

About 8 decisions with increased leverage at each point as more equity is obtained. Your equity basically goes up 50% at every decision.

So in 60 trading days, can you make 8 successive decisions using max equity able to pull out 100% of the implied trading range.

Chris
 
I posted in another thread about 600% monthly profit on a small account. Small for that thread being 5k or less. My experience is with 5-10K.

Based on 20 trading days in a month, 8% profit (based on portfolio value)per day is 366% per month. 10% per day is 573%

Below is an XL workbook to play what-if

With a larger account (50k qualifies, imo) there are a few problems however. BTW; I traded index futures for this. No stocks, options, forex,etc.

1) Concentration, not diversification is the simplest way to achieve this, imo. The goal is to hit the daily profit target, period. Flat at eod. No unnecessary risk such as overnights.

2) With a larger account, concentration usually involves slippage, if the entire position can be put on at all. To
mitigate this, and at the same time reducing risk, and at the same time not impeding attainment of the daily target, use double or triple the intraday margins provided by your broker, or even exchange minimum margins. By doing this, you...

a) Utilize a max position which will have minimal slippage. Based on 50K, this means a month start max position of 20-40 contracts. No problem getting in and out et al. As account increases especially during the 2nd half of trading month, this aspect must be still be dealt with, however. Dependant on your chosen market(s).

b) obviously, higher margin reduces risk

c) 8% target = $80 per 1K. Can you NET $80 profit per contract? Do you care if it takes 1 trade or 50 trades in a day? Concentration not diversification allows the prize to always remain in view without confusion, imo.

3) At eom, reset account balance, or face the problems of a larger account and/or diversification.


Good trading to you,
Osorico :)
 

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