Average daily profit with $50K account?

[NoDoji]

Quote from chipmunk:
For all you high flyers out there making 1% a day remember that Bernie Madoff only promised 12% a year and he couldn't achieve that. [/B]

That's the advantage us wee folk have. To obtain my 1.5% return yesterday I was able to get in and out of my 500-share POT positions in the time it took me to click a mouse.

If I was managing millions or billions and wanted a 1.5% return on POT yesterday, I don't think it would've been so easy.

 

[chipmunk]

Actually Ndoji Was quoting from another post I did not say this:

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Quote from chipmunk:
For all you high flyers out there making 1% a day remember that Bernie Madoff only promised 12% a year and he couldn't achieve that. [/B]

 

[chipmunk]

LOL surely you mean DISADVANTAGE?


So we are at an advantage woth out $100,000 accounts over the guys with $100M+ accounts? R.O.F.L.

I's rather be making 13% on $100M than 100% on $100,000

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That's the advantage us wee folk have.

 

[bearice]

Quote from RedRat:

Would you invest into the hedge fund which shows last year performance 20%? What if I add that during the last year the performance was 20% but WITH DD 80%??? Would it INFLUENCE your decision?

Quote from chipmunk:

Quote from chipmunk:
For all you high flyers out there making 1% a day remember that Bernie Madoff only promised 12% a year and he couldn't achieve that. [/B]

I know a forex trader who guarantees 20% profit per month.

 

[1a2b3cppp]

Quote from Algo_Design_Kid:

9 contracts on the line with a $50,000 account should make you shit yourself as well. It is my guess you do not trade at all. Thats almost 1% per ES point.

What happens when the price just keeps going the other way? Double up? Then triple.. then... BOOM! JP has your 50 large.

It's already well documented in my journal thread how I trade, when I add, and when I exit. So no, I'm not even close to being at risk to lose my "50 large".

You do not understand risk management, you are showing it by this previous post. Percentages aren't relevant for traders? Seriously?

I've explained this many times in this thread, too. You should read my posts before asking questions that have already been answered.

 

[1a2b3cppp]

Quote from bearice:

I know a forex trader who guarantees 20% profit per month.

I get "ads" in the mail from time to time for "managed Forex accounts" that guarantee huge monthly returns, too.

"OMG LOOK AT OUR HISTORICAL RETURNS!" and it shows like 40% per month for years on end. lol. Too bad when you Google them you get tons of people saying how they lost money and the fund magically started going down as soon a they invested. Unfortunatley I don't remember the names of them because I toss all that crap I get in the mail.

How does your friend "guarantee" 20%? Does he refund investors' money if he loses?

 

[Algo_Design_Kid]

Quote from 1a2b3cppp:

It's already well documented in my journal thread how I trade, when I add, and when I exit. So no, I'm not even close to being at risk to lose my "50 large".



I've explained this many times in this thread, too. You should read my posts before asking questions that have already been answered.

You didn't address it lol.

You just don't understand it.

You are under capitalized for the game you are playing. Yes you can do what you are doing but it isn't professional risk management. For anyone to take you serious you must be a professional. Obviously you are not looking for that from others.. but there is a reason why there are strict rules.

Like I said, best of luck - but statistically you will not keep up your shorter term pace in the long haul.

 

[RedRat]

Quote from NetTecture:

They don't TRADE as in DAYTRADE. You can not move in and out of the market in seconds if you are that large.

The consensus here you ignore is that "Trading" is assumed to be "short term trading within a significantly smaller period than a session".

What hey do is swing trading (days to weeks). And that in baskets of instruments (multiple stock etc.).

The asusmption so far on the other side of the discussion was fast trading - look at the 1200 USD published result with 46 trades IN A DAY. That is severely limited in liquidity. No way to scale that up to a 50 million USD fund.

Regarding the screenshot:
1) For one day it is possible to reach 1200 USD, but the other day I would have a larger loss.
2) If you aim $500 per day with the account $50k you must be ready to experience several HUGE drawdowns and may be complete blow up of your entire capital.
3) I believe for that strategy the daily limit is around 5 million USD for TF contract, may be even higher. If trade several liquid futures this number should be higher. Yes there is a limitation on liquidity, but I don't know when I reach it. Rather I lost my entire account first.

 

[RedRat]

To All: read this thread:
http://www.elitetrader.com/vb/showthread.php?s=&threadid=187380

On the second page Acrary gives simulated statistics. What would happen if do single trade per day with PF = 1.5 and risks 1.75% of entire portfolio.

At the 50% level (also the most likely result) starting from $150k you receive $346k. Don;t know whether it is the net profit or final account. I did not check his calculations.

What is more important, that during that year you would experience DD around 56%. And believe me, PF = 1.5 is a high value for intraday trading. There is no 275 trading days per year, some days there are holidays and market is not active. Commissions are not included. In this simulation world there is no margin call and you may trade fractional lot. May be I missed something.


So
To get 200% per year you need to have solid strategy (PF > 1.5) and good money management. Even if you have all of this, you would experience 40%-50% DD.

 

[1a2b3cppp]

Quote from Algo_Design_Kid:

You didn't address it lol.

You just don't understand it.

I address both those things.

I address when I exit, which is established before I enter a trade.

And I address why percentage gains don't matter for day traders.

If my account was $100k I'd still trade exactly the same way and make the same DOLLAR profit, yet my percentage would be less even though my performance was exactly the same. The only difference is I would have $50-70k unused margin sitting in my account.

You are under capitalized for the game you are playing.

Ok, well I guess as (if) my account grows eventually I won't be so undercapitalized anymore eventually

So in your opinion, how big should my account be for trading this strategy, and why? I can currently take between 25-40 consecutive losses before I would be unable to trade this strategy anymore. How much money should I have in my account to do this and why?