From Micros to Millions: 2% per day

[jl1575]

You dont go from one MES to 50 ES within 2 months. If you are good, your trading will get you there, but it might take something like 5 years, .

That is not what is in sstheo's plan, once he reaches 1 million then he will trade with 100 ES ($10K per ES), provided he is consistent in 2% every day; With 2% everyday compounding , it takes only about a year to reach 1 million from $6000 that he started with. So to trade 50 ES, it should be within one year's time frame if he is able to stick to his plan and everything works fine for him. Hope he use everything from robust strategy, strong discipline and sound money management to achieve his goal and that would be great demonstration to others. Definitely NOT an easy journey, but according to him, one of his friends has done it successfully for many many years.

From his first post:

"To begin this new journal, I now post an extraordinary goal:

Starting with Micros, I will try to turn $6,000 into $1,000,000 in 12 months.

You read correctly. $1 million. And I think it is doable. At least the math says it is. And my confidence is high."

 

[Overnight]

...
But the scaling gets easier once you trade already a few contracts. The jump from 1 to 2 contracts is significant, 100%. Later, when you jump from 10 to 11 contracts, it is nothing special anymore, a 10% increase.

Of course it is "a bit" early for him to think about 50k profit days...

I get what you are saying. I understand the idea of the slow scale. It's just that posting the "50ES can make you the 600K, would that not be great" thingy is distracting. I am sure he is thinking that, like I do. No need to reinforce the temptation, because he is human.

Now I lost my train of thought. Bugger!

 

[CALLumbus]

I get what you are saying. I understand the idea of the slow scale. It's just that posting the "50ES can make you the 600K, would that not be great" thingy is distracting. I am sure he is thinking that, like I do. No need to reinforce the temptation, because he is human.

Now I lost my train of thought. Bugger!

LOL !!

 

[CALLumbus]

That is not what is in sstheo's plan, once he reaches 1 million then he will trade with 100 ES ($10K per ES), provided he is consistent in 2% every day; With 2% everyday compounding , it takes only about a year to reach 1 million from $6000 that he started with. So to trade 50 ES, it should be within one year's time frame if he is able to stick to his plan and everything works fine for him.

"Everybody got a plan, until he gets punched in the face"
Mike Tyson

It is good to have a plan, but dont worry, sooner or later he will adapt them a bit, given that he can really stay consistent over a longer period.

 

[jl1575]

"Everybody got a plan, until he gets punched in the face"
Mike Tyson

It is good to have a plan, but dont worry, sooner or later he will adapt them a bit, given that he can really stay consistent over a longer period.

Yes, that is true.
This is his third journal and I followed his first and second, and he did pretty well in them, and he is getting even better and I kind of have some faith in him.

 

[Overnight]

LOL !!

Ahh, I just recovered the train of thought...

It was because this time, he is using his own money and not the "OPM" of those combines. That changes the mental spectrum of scaling up.

Something like that.

 

[sstheo]

That is not what is in sstheo's plan, once he reaches 1 million then he will trade with 100 ES ($10K per ES), provided he is consistent in 2% every day; With 2% everyday compounding , it takes only about a year to reach 1 million from $6000 that he started with. So to trade 50 ES, it should be within one year's time frame if he is able to stick to his plan and everything works fine for him. Hope he use everything from robust strategy, strong discipline and sound money management to achieve his goal and that would be great demonstration to others. Definitely NOT an easy journey, but according to him, one of his friends has done it successfully for many many years.

From his first post:

"To begin this new journal, I now post an extraordinary goal:

Starting with Micros, I will try to turn $6,000 into $1,000,000 in 12 months.

You read correctly. $1 million. And I think it is doable. At least the math says it is. And my confidence is high."

Thanks for the support.

*IF* I actually make it to $1M, then 100 ES would be possible according to my plan, but at that point the plan would probably change. My friend who trades 50 ES contracts routinely has scaled back because of the election. I can think of lots of reasons to scale back. What size will I trade IF/WHEN? I have no clue.

 

[syswizard]

My friend who trades 50 ES contracts routinely has scaled back because of the election. I can think of lots of reasons to scale back.

Well that's a bit strange of a statement. Example: "I am scaling back because my son is having his birthday tomorrow". "I am scaling back because the price of crude oil is going up (or down)", "I am scaling back because an analyst is calling for steep drop in the market", etc., etc.
The only real valid reasons for scaling back:
1) Your equity curve is declining and you are in a drawdown
2) Volatility has increased in the markets you are trading
3) You are physically (or mentally) ill due to trading large size

 

[sstheo]

Well that's a bit strange of a statement. Example: "I am scaling back because my son is having his birthday tomorrow". "I am scaling back because the price of crude oil is going up (or down)", "I am scaling back because an analyst is calling for steep drop in the market", etc., etc.
The only real valid reasons for scaling back:
1) Your equity curve is declining and you are in a drawdown
2) Volatility has increased in the markets you are trading
3) You are physically (or mentally) ill due to trading large size

I love number 3. I hope to have that problem. Let's talk again a few months about this.

I think the main reason would be that the daily gains would be more than sufficient for any needs. At 100 contracts, I don't think slippage would be an issue.

 

[sstheo]

Thanks for sharing.
1) re: "Footprint Charts". I once joined a trading room that used an elaborate set of metrics all built around these charts. The entire thing was custom-built in Ninja Trader. I quit after two weeks when they could not produce any consistent profits from using it.
2) re: "Cumulative Delta". It is my understanding this indicator requires a Level 2 data feed.
3) re: "On Balance Volume". Are you saying this mirrors Cumulative Delta for the most part ?
4) re: "purple and green triangles". What's the logic behind these ? They look like great scalping entries.

The footprint charts are an amazing idea, but I think they need an algorithm to take advantage of them.

I only have level one data from AMP and my CD chart is working fine.

I have run CD and OBV both on the same chart. There are subtle differences, but for the most part, they do mirror each other.

The purple and green triangles were theoretical entries. I was marking the +1 SD line and the -1SD line where prices were near those lines to show my thinking - which is reversion to the mean or VWAP.