$2,000 to $200,000 in 2020 at 2.00% per day.

gaussian said:
I loved your last one, good luck with this one. $200,000 is really ambitious. I'll prepare a bottle of champagne (which I'll bill to you) when you accomplish it :p.

On a more serious note I've tried trading MES during Euro/Japan times and the liquidity is really bad. How are you managing decent trades in that environment?
More...

Thanks for the well-wishes. I loved your proposed prize, LOL.

I try to trade only during the NY session, but I can imagine liquidity issues. I did hear that the micros volume has increased dramatically in the last 6 months, so maybe it is spilling over to other time frames as well. Good luck.
 
Clubber Lang said:
Good luck with your journal and trading.

If I may offer a piece of advice-
Don’t put hard limits on times to trade (9:40-11:40 only) or profit limits (2%/day).

There will be opportunities for you to make a month/quarter/year on a handful of trading days. Don’t restrict yourself.

Make hay while the sun shines.
More...

Good advice. If I see stellar trading conditions where everything seems to be clicking, then I should consider keeping the machine on. Thanks.

Most days, things do dry up a bit around 11:40 because of the NY lunch time. And because I have real estate stuff to do, that is a good time to focus. (During trading hours while I am waiting for setups -- I am working. But without question, things are not ideal for work OR for trading without complete focus.)
 
@volpri Wasn't that a great article? Most days I can hear the beautiful market music, with catchy melodies and swelling crescendos. But candidly, I have been faked out by the Fed way too many times and "bullish expansion" sends shivers down my spine.

A strongly rising market is my most problematic market condition - and the one I am trying to work on the most - which is so freaking ironic since the market seems to rise more than it falls. If I just bought the low each day, imagine how many 4-monitor setups I could afford after 13 years of trading!

I will probably reference this challenge of mine later-- my hesitancy to "go with" short squeezes or out-of-balance massive buying. But for now, know that I haven't made my $200k prior to this day because I have a lot of trouble trading bias-free (especially with no short bias).

Let's all listen and quickly determine what kind of music the big boys are playing each day and stay in-sync with them and maybe even get a little jam-session going.
 
traider said:
You are trading so much your broker loves you. If your edge is not consistent you are just making millions for them.
More...

Agreed. All my brokers really love me. But I don't mind paying them--as long as I come out on top at the end of the day.

I take 10 to 20 trades a day on average. I am working on getting that below 10, and 7 today was good. It's only "over trading" when you are losing money. I make a LOT of base hits. And it's the base hits that usually win the baseball game.

But my style is definitely a scalping style. Yet is 10 ticks really scalping? And I do hold some trades for much longer. At least I am trying to. Of course I will try for bigger trades, but I won't let many 10-tick trades go by without trying to get involved.

While overall the market is bullish, technically, about 70% of the time the market is ranging. And that is my focus. Ping pong. Play the edges. And so there you have it. The edges are my edge!

And because the range trading is my focus 70% of the time, I do have trouble with the breakout expansion trades as mentioned previously. The market is seeking value elsewhere, and I am often still trying to fade the move. But I am working on it. This is why I need this journal. It helps me to be more objective in my trading reflections. It is the 30%, the strong trends, that I struggle with. Crazy, huh?

The irony is not lost on me. I certainly am in the minority. Most traders make most of their money on two or three big trends during the day. But they often get chopped up in the ranges. So we are opposite. By the time they finally catch that big trend, I often have already made my money for the day from big consolidations and have moved on. But then I miss great opportunities and often get slaughtered on the trends. Imagine if I could be 100% competent, and trade both ranges and trends with equal finesse?
 
sstheo said:
I am back. Happy new year and decade!

This year, 2020, I am going to try to safely turn $2,000 into $200,000 at 2% per day by building on the adventures I had here in my Micro E-mini Madness journal: https://www.elitetrader.com/et/threads/micro-e-mini-madness-2-per-day.335221/

Main goal: 2% average per day, each week, starting with $2,000 and using only micros at the beginning. I will try for 2% per day for 12 months. By the end of 2020, I should be at $200,000 and making $4,000 per day with 8 regular E-mini contracts.

Wow! That sounds awesome. Can I really do it? There is only one way to find out! I did fairly well the first couple months last time, but the stakes are higher now, starting with $2k.

After 12 months I will probably drastically drop the daily target since 2% per day ad infinitum is impossible. But I do know guys who trade with 8 contracts at a time. And this whole very public exercise is to train my tiny brain to be able to CORRECTLY handle the stress that goes with 8 contracts. Now check this out-- I have a friend who knows someone who trades 100 Emini's at a time. How does he do it? I just can't imagine. But -- I bet he started small.

Sub Goals

1) Plan ahead for the trading day by (a) Plotting the previous day's signposts: High, Low, Open, Close, support levels, resistance levels. (b) Keep track of news releases. (c) Look at the overnight inventory to see if it is strongly bullish or bearish. If it is too lopsided, the odds go up for a reversal at the open.

2) Trading time. 9:40 to 11:40 ET. No swing trading, no overnight trading, no intentional news trading. I may trade longer in the day if I have not met the 1% minimum daily goal.

3) Instruments. I will trade only the micros - MNQ, MYM, and M2k at the beginning. Some like the MES, but it is too slow for me, and I prefer the 50 cent ticks of the others.

4) Number of contracts. 1 micro per $500 in the account. For example, I can currently trade with up to 4 simultaneous contracts. When I get to $2,500, then I can add a 5th.

5) Stops. I will honor a $20 per contract stop for the micros. This is like $200 on the E-minis and seems a bit large, but for the micros and this crazy volatile market, the risk seems correct. Regardless of the size of my stop, any time I feel the market is turning against me, then I will get out immediately - before my stop is hit.

6) Daily goal. 1% to 3% per day. I will keep trying until I get to at least 1% per day, even if I go over time. I will stop at 3% per day, even if I have extra time.

7) Once I get to $5,000 I will allow one regular Emini. At $5,500 I could trade up to 11 micros or one Emini and one micro.

I am sure I have left some great goals and rules off the list, but lets get to the results of the first day:

$43. I am off to a great start, hitting the 2% mark on the nose on day one.

View attachment 217138

Here are the charts

View attachment 217139

Things were a bit touch and go some days on the other account, but that is the nature of trading! Again, my goal is 1-3% per day, trying to get an average of 2% each day overall. But if I only get 1% per day, I might still be tempted to call the adventure a success.

My motivation is to grow my capital, but to do it SAFELY and consistently. I have watched lots of traders, including myself, be high-risk traders. In fact, the only thing we seem to be consistent on is blowing ourselves up!

So this is an ATTEMPT to model a SAFE way to grow an account. Whether you use micros or minis yourself or even a funding company, the principles are the same: Don't take on too much risk. Don't aim for the fences with each hit; go for the base hits. Take your time. Have a great "I can do it" attitude. Evaluate and refine.

Thanks for joining me.

sstheo
More...

Welcome back, I'm glad you're back in the game! Good luck to you!
 
sstheo said:
Can the market go higher from here? Seems really improbable.
More...

Why not? And why does it seem really improbable?

Do yourself a huge favour and eradicate this thinking and any political/economical viewpoints when you're trading. Do I remember incorrectly or was there not a week or row of days in your old journal where you were saying the same thing, i.e., markets being too high?

Most people find this market irrational, but that's not a basis for flat out going against it. It was 'too high' 300 points lower and can easily go even higher from here.

Anyway, good luck on your journal! :)

PS: Maybe it's better to focus on daily consistency instead of a fixed % amount? The daily offer is not constant. Some days offer little - some days offer a lot. If you feel pressured to make a buck on a slow day you can easily start racking up losses.
 
Laissez Faire said:
Why not? And why does it seem really improbable?

Do yourself a huge favour and eradicate this thinking and any political/economical viewpoints when you're trading. Do I remember incorrectly or was there not a week or row of days in your old journal where you were saying the same thing, i.e., markets being too high?

Most people find this market irrational, but that's not a basis for flat out going against it. It was 'too high' 300 points lower and can easily go even higher from here.
More...

Thanks so much for the great post.
  • Shorts at rollover tops? Check.
  • Shorts in consolidation ranges? Check.
  • Shorts in an expansion downtrend? Check.
  • Long trades in ranges? Check.
  • Long trades from "oversold"? Check.
  • Long trades in expansions to the upside? NOT SO GOOD YET.

Eradicating the "Certainly is overbought!" idea would truly be the best favor I could give myself this new year. Indeed, I struggle with my short bias constantly.

I must let each day stand on its own. Let each hour stand on its own. Ignore the All-Time Highs as a "guaranteed overbought zone." Why do I even think this in the first place? History shows that trends usually continue!!!

I think what I need to do is seriously ask myself each day "What is the bullish case?" and each 30 minutes or so determine good LONG entry positions - both near the lows (looking for a reversal on a "balance" day) or above all the action as a breakout and expansion above the action of the day ("seeking new value" day).

And after determining the ideal entries, I need to promptly hit "BUY" when the price gets there. No delay, no second-guessing. With my stop I am protected. If my confidence is low, I can still use just 1 micro. But at least I am progressing in my ability to trade all market conditions.

THE GLOBAL and U.S. BULLISH CASE. Yes, the geopolitical climate is uncertain, but
  1. Capital, like water is going to flow to where it gets the best return.
  2. The stock market has some great companies run by some very smart people.
  3. People around the world want someplace "safe" to park their dough.
  4. Earnings are strong.
  5. Rates are low.
  6. The Repo purchases by the US Fed are breaking all the central bank intervention records!
  7. Fund managers are told to "buy" not sell.
  8. Because of the last recession there is still a lot of money on the sidelines, but the higher we go, the more people jump back in because they have a fear of missing out (FOMO).
  9. And finally, on a technical note, there are lots of misguided "It's Overbought!" people like me who short but then fuel even more buying when our stops are hit.
I am sure this "bullish rationale" list can go on and on. In fact, I may try to add to it later in order to retrain my brain.

Yep. I see that the market can go much higher from here. Will I handsomely profit from the move? Or will I fight it all the way up and merely break even or worse? Will I allow myself to see the long entries and have the confidence to take them?

Let's find out.

Thanks again for waking me up @Laissez Faire
 
You must log in or register to reply here.
Back
Top