Daytrading 1M

[UMU]

The point is not to get some fairy land $1m to trade with but to trade your way up to $1m and beyond. You need to learn how to grow whatever you've got into a much bigger sum .. that is the name of the game, period

The reason for 1M trading for the backtesting is that results of trading 1M should be statistically more significant than trading smaller amounts.
Ie. it is usually harder to make higher profits with big money than with small money. The more the capital the less the % performance and vice versa.
If the system masters this then it will do usually better for small money.
Getting high results for big money is a challenge because one has to take some more factors into consideration like max position size, to be realistic.

 

[Cheese]

No, it is easier to make money with bigger capital. However it may not be as easy with a mega massive sum applied to a market which could not provide the liquidity to support such huge play particularly if it was intra-day or very short term play.

So IMO it is still not about a given fantasy sum of $1m. You need to do the same things that work for whatever size capital you have. It may be a tad more difficult with a very small capital base such that you cannot support the size needed to be scaling in and out but no way does it prevent a very good plan (with full market understanding) from growing your capital and enlarging it through net profit accumulation to significant and/or higher levels of capital.

 

[Aaron]

Quote from neutrino:

The important question is not how much can you make but how much you are willing to risk. Once you determine your risk parameters, all you have to do is trade within that limits and take what the market gives you.

Sage advice, Neutrino. You sound like a successful trader.

 

[glassinc]

Quote from UMU:

Imagine you have a trading account of size 1M.
As a daytrader how much % do you think you can make of it in a year?

Hello,

A ? for you, would it include using leverage of 2:1, PDTs 4:1 or no leverage @ all. I believe with 1mill, & using no leverage, the results could be very good, with leverage exceptional for an accomplished daytrader.

Looking forward to the reply!

God Bless & Good Trading
Kelly

 

[lojze]

Quote from neutrino:



Others will try to double it but they will have to be ready to stomach losses of up to $200,000. Now I guess you wouldn't want to throw that much money away

If this 1M is old money, earned with trading, then there will be less emotions, so earning more will be easier.

Otherwise, it could go away really quick.

But trading TASR in those days with 1M can earn quick 20%. you know, 10,000 shares is even more than 1M.

 

[UMU]

A ? for you, would it include using leverage of 2:1, PDTs 4:1 or no leverage @ all. I believe with 1mill, & using no leverage, the results could be very good, with leverage exceptional for an accomplished daytrader.

I was thinking of cash only trading, but you can use whatever works best for you; just maximize profit, minimize risk/DD etc. But it should be "repeatable". Ie. next year a similar result should be possible.
IMO such a question can be answered best by doing some realistic backtests/simulations.