From 1k to 500k (Deadline: 2017)

Keith Styles · Mar 28, 2016

Handle123 said:
Wait for a breakout, then place limit lower so you only risking one point, cuts back on over trading and slippage as that would expand risk even more.

I did a contest once with a buddy with $1,000 account, each had a grand, he blew out in first day from the stress as he was good trader, but he was thinking more on the amount and tried to cherry pick trades and not way to go. You tried to take every trade but force the market to retrace so you can get in cheaper and use 3 bar rule that have to either change target or protective stops to plus one tick at end of three bars, best trades happen quickly. I stayed all five days and did like 8 trades and came out couple hundred ahead, have to be very patient.

Where do you find these contests?

K-Pia · Mar 28, 2016

Thor1 said:
Totally agree with der_kommissar on the OTM options.
Good luck

Actually, I'd like to replicate OTM options. At least, the payoff. Plus we can set the price of the option with future. But SL are hit whereas with option we decide when to get out. The convexity can't be replicated neither without increasing risk linearly ... So the analogy is small. Still learning about options and I am much more familiar with futures. And I still can make it this way.

Cyse said:
Iit means I'm excited for you to work some MAGIC!

Vol delta... what type of indicator is this? I'm only familiar with macd. And stochastic.

Anyways, I think you can do it... if you let all your money ride at once!

Aha. Let's work some magic =P
Vol Delta offsets sellers from buyers.
You can search on Google volume delta.
So I won't make it because it's not a shot.
It will be multiple (at least 12). It's a long way.

K-Pia · Mar 28, 2016

Keith Styles said:
Where do you find these contests?

It was maybe more a challenge between us than a contest. But if you google it you should find your answer. "Trading" and "Contest" or "Competition" ...

Handle123 · Mar 29, 2016

Keith Styles said:
Where do you find these contests?

Just a trading buddy I chat with few times a week, use to be he always beat me till few years ago and now my turn.

Handle123 · Mar 29, 2016

I don't know anything about these Contests, so you have to check them out.

http://search.aol.com/aol/search?s_...s_it=comsearch-b-hyplogusaolp00000092&s_qt=ac

http://www.liteforex.com/contests/demo/top10forex/

http://search.aol.com/aol/search?s_...hyplogusaolp00000092&q=stock+trading+contests

Handle123 · Mar 29, 2016

der_kommissar said:
$1k is simply not enough...the margin for error is nil...Realistically with a tiny account I'd be more inclined to go for some deep OTM options and see if I could get a run going...Just a few small, sharp cuts in the futures markets will put that account to sleep in no time.

I see this no better than betting at roulette wheel. If he has a Trading Plan of keeping losing percentages very low, and WAIT for drawdown first as all systems have some type of drawdown. This is one the reasons so many people lose money buying systems, they start trading at new equity highs instead of waiting for "mean" drawdown. It is very difficult as you don't want to get caught up into picking trades, cause all have same chances of no losses.

K-Pia · Mar 29, 2016

Handle123 said:
I see this no better than betting at roulette wheel. If he has a Trading Plan of keeping losing percentages very low, and WAIT for drawdown first as all systems have some type of drawdown. This is one the reasons so many people lose money buying systems, they start trading at new equity highs instead of waiting for "mean" drawdown. It is very difficult as you don't want to get caught up into picking trades, cause all have same chances of no losses.

I plan to min loosers by reducing noise and signals. So I'll under trade. After I can't tell what the accuracy is knowing that. Still learning to backtest. What do you mean by WAIT for DD first ? That I should consider the first sequence being a DD ? I have an Idea of the Max DD. Which I wouldn't survive if it had to realize right at the beginning. I don't agree that all trades generated by a system are equally likely to make it.

Handle123 · Mar 29, 2016

K-Pia said:
I plan to min loosers by reducing noise and signals. So I'll under trade. After I can't tell what the accuracy is knowing that. Still learning to backtest. What do you mean by WAIT for DD first ? That I should consider the first sequence being a DD ? I have an Idea of the Max DD. Which I wouldn't survive if it had to realize right at the beginning. I don't agree that all trades generated by a system are equally likely to make it.

I have found in my back testing that you have a max DD which for me be like three losing days max in a row for day trading and that comes up once every three years and in between I have mini DD's of one losing day of Max, so if I was to implement a new signal even though I would have backtested the crap out of it, I would wait till I had losing day and next day start using it.

Now through the years I have bought many systems from venders, I have found six that do fairly well except they will have up to 50% drawdown before making new equity highs, so again, did much backtesting, they programmed and waits for 80% drawdown of the "mean" before it can take signals and continues till 80% of the "mean" of equity curve going up, so the overall drawdowns are acceptable. Besides I came up with idea after drinking much wine, this works for me, but it was difficult to start in beginning cause it goes against what seems logical. We all want to get on board a trend as it feels good to do so, but markets not logical-they move without any news "just because", and I have overcome emotions and most trades look like they make no sense....

Any trade is 50/50.

I Know You · Mar 29, 2016

Handle123 said:
Any trade is 50/50.

Exactly.

K-Pia · Mar 29, 2016

Fundseeder doesn't work so I'll post EOD statements. I won't appear in Schwager next book. LOL.