1-2 ES points a day

fearless
I am really happy to run into these posts of yours because what you are talking about I figured out long time ago only to dismiss it you know why? I couldn't bring myself to actually believe that something so simple and almost "risk-free" could work.
 
Quote from steve46:

This if for the original poster.

Margin....It is important to know margin requirements BEFORE you trade, while setting up your account, deciding which markets to trade and how you will manage risk. If you are a retail trader, margin requirements tell you whether you can sit down at the table.

If you (the retail trader) have to worry about margin, it is a signal that you are undercapitalized. This is true of most retail traders.
For that reason, it is wise to understand margin and its affect on your trading before you trade, during the planinng stage, when you are writing out your business (trading) plan.

Rather than listen to the bullshit artists that populate the site. Look at the various exchange and brokerage requirements first, THEN when these idiots profound on the subject, you will be able to know how to act.

Here is a link that you can use to educate yourself as to margin

http://www.eltee.de/en/usefulsmargins.php

and another link from Wikipedia

http://en.wikipedia.org/wiki/Margin_(finance)

Hope this helps the original poster.

Steve
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Thanks for the links Steve.

My plan is to risk 15% of my account per trade with a stoploss of 50% of the ATR14. I deposited 10,000 since it seems this is a large enough amount to cover my drawdowns, yet small enough to not be significant in case I blow up the accou,nt.
 
Quote from Cesko:

fearless
I am really happy to run into these posts of yours because what you are talking about I figured out long time ago only to dismiss it you know why? I couldn't bring myself to actually believe that something so simple and almost "risk-free" could work.
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Well they do say that a good secret should be well hidden in the open.

I have also noticed that Traders carefully hide their stops in obvious places.
 
Even though we are openly discusing this subject ( thanks to esnewbie), 95% of traders will continue to lose their money.

Obviously A followed by B will not yield C.
 
Quote from fearless9:

Well they do say that a good secret should be well hidden in the open.

I have also noticed that Traders carefully hide their stops in obvious places.
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wait until spyder start discussing DOM.
 
Quote from esnewbie:

Thanks for the links Steve.

My plan is to risk 15% of my account per trade with a stoploss of 50% of the ATR14. I deposited 10,000 since it seems this is a large enough amount to cover my drawdowns, yet small enough to not be significant in case I blow up the accou,nt.
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This is good.

Knowing the base performance bond levels are definitely a prerequisite for any type of trading which incorporates margin.
***
At the more advanced levels of trading, this information can be used to substantially decrease your risk will increasing your return, and can be used to grow your account at an exponential rate.

Knowing the risk:reward parameters of your setup(s), and how it/they performs over-time will also assist you in the day-to-day business of taking your trades.
***
But regardless of whether or not one believes the previous statements are true, the basic premise of the thread is designed around averaging 1 to 2 ES points per day, and I think we can all agree that is doable, regardless of the base margin (and how skillfully it is) used to generate your results.

Good trading,

Jimmy Jam
 
Quote from JimmyJam:

This is good.

Knowing the base performance bond levels are definitely a prerequisite for any type of trading which incorporates margin.
***
At the more advanced levels of trading, this information can be used to substantially decrease your risk will increasing your return, and can be used to grow your account at an exponential rate.

Knowing the risk:reward parameters of your setup(s), and how it/they performs over-time will also assist you in the day-to-day business of taking your trades.
***
But regardless of whether or not one believes the previous statements are true, the basic premise of the thread is designed around averaging 1 to 2 ES points per day, and I think we can all agree that is doable, regardless of the base margin (and how skillfully it is) used to generate your results.

Good trading,

Jimmy Jam
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Thanks JJ,

I follow yours and Apex's trades in the ES Journal and hold both of you guys in high regard. I have learned alot watching you guys trade and hope to emulate your success with my smaller targets.
 
Come on man, you made a mistake, acknowledge it as a real man!

Quote from gnome:
1. I never said that. I only mentioned what a good return would be.
2. I never said that, either.
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Sure you did. #9 post in this thread:

Quote from gnome:

1 pt/day @ $50 per point x 250 days/year = 12500

12500/75000 (face value of 1 ES) = 16.67%
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You just calculated the return based on the FV. Hello?? Facts are stubborn things. :)

3. Your rationale about leverage is total nonsense. Suggest you stay away from futures markets completely.
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Will do skipper. By the way what rationale? My explanation how leverage works? You were wrong on the first one you are wrong on this one too....
 
Anyway, let's leave Gnome alone for a while until he figures out the math, and let's confuse newbies a bit more:

Here is how you calculate LEVERAGE, just incase you are the curious type:

(Face Value/ account value) X number of contracts

Let's see an example: If you have a 75K account and you only trade 1 contract you are not using leverage. Let's say you have a 10 K account and you are trading 5 contracts:

(75000/10000) x 5 = 37.5

How you calculate your % return is even simpler:

profit / starting account x 100

But you already knew that, right?
 
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