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Futures: Make $15,000 a day
- Thread starter TheCaymanIsland
- Start date
15K a day over 200 trading days equals 300K per year. If you have a system returning 15% annually, then you require 2 million. If you have a system earning 30% then you only require 1 milion.
However, it will vary depending on the amount you are prepared to risk on each trade. Risking a maximimum of 1% per trade will return a dramatically different result than if you risk 2% per trade. Your risk of self distruction wil rise by a factor of 400%.
RUNNINGBEAR.
However, it will vary depending on the amount you are prepared to risk on each trade. Risking a maximimum of 1% per trade will return a dramatically different result than if you risk 2% per trade. Your risk of self distruction wil rise by a factor of 400%.
RUNNINGBEAR.
Quote from Runningbear:
15K a day over 200 trading days equals 300K per year. If you have a system returning 15% annually, then you require 2 million. If you have a system earning 30% then you only require 1 milion.
However, it will vary depending on the amount you are prepared to risk on each trade. Risking a maximimum of 1% per trade will return a dramatically different result than if you risk 2% per trade. Your risk of self distruction wil rise by a factor of 400%.
RUNNINGBEAR.
I'd probably be willing to risk .25% on each trade.
Quote from Runningbear:
15K a day over 200 trading days equals 300K per year. If you have a system returning 15% annually, then you require 2 million. If you have a system earning 30% then you only require 1 milion.
However, it will vary depending on the amount you are prepared to risk on each trade. Risking a maximimum of 1% per trade will return a dramatically different result than if you risk 2% per trade. Your risk of self distruction wil rise by a factor of 400%.
RUNNINGBEAR.
It's not 300k. It's $3,000,000 per 200 days a year.
Quote from Runningbear:
15K a day over 200 trading days equals 300K per year.
Might want to double check the math there...;-)
There have been some decent posts here, but from my perspective, the OP is looking at this upside down. I've done manager selection and due diligence for the past few years, and I've found that when a manager approaches trading from a profit goal, as opposed to risk management, it's usually time to run for the hills....or at least cut the conversation short.
Although the investor may have unlimited capital, I highly doubt they have an unlimited risk appetite. If they are willing to risk a set amount of capital on your system, then you can work out the rest of the metrics from there. Make sure that you aren't going to stop yourself out and that you keep volatility at comfortable level. With futures programs, it's important to look at things from a risk/reward ratio, as an investor can virtually always notionally fund the account to get to the desired vol they are looking for.
Best of luck to you!
Quote from Eric215:
It's not 300k. It's $3,000,000 per 200 days a year.
Read it again. 300K if your annual target return, not your capital requirement. The next line says the capital requirement is between 1 and 2 million depending on the amount of risk you're willing to take per trade. Of course if your only willing to risk .25% of capital per trade, then your capital requirement rises to 8 million.
Runningbear
Quote from Arb Under Par:
Might want to double check the math there...;-)
There have been some decent posts here, but from my perspective, the OP is looking at this upside down. I've done manager selection and due diligence for the past few years, and I've found that when a manager approaches trading from a profit goal, as opposed to risk management, it's usually time to run for the hills....or at least cut the conversation short.
Although the investor may have unlimited capital, I highly doubt they have an unlimited risk appetite. If they are willing to risk a set amount of capital on your system, then you can work out the rest of the metrics from there. Make sure that you aren't going to stop yourself out and that you keep volatility at comfortable level. With futures programs, it's important to look at things from a risk/reward ratio, as an investor can virtually always notionally fund the account to get to the desired vol they are looking for.
Best of luck to you!
Arb under par is correct. My calculation assumes you have a robust trading system delivering 15% to 30% percent without too much risk. The reason I make this assumption is because if you don't, then you are a fool to be trading that kind of money in the first place.
Runningbear
Quote from Runningbear:
Read it again. 300K if your annual target return, not your capital requirement. The next line says the capital requirement is between 1 and 2 million depending on the amount of risk you're willing to take per trade. Of course if your only willing to risk .25% of capital per trade, then your capital requirement rises to 8 million.
Runningbear
I didn't say it was your capital requirement. You wrote, "15K a day over 200 trading days equals 300K per year", this is not true. 15k a day over 200 trading days equals $3,000,000 per year. It would only take 20 days to make 300k at 15k per day. Your other figures are off by a zero also, they should read 10 and 20 million.
Like we said, check your math.
I am not saying this to discourage you, but to save you money. Given the level of knowledge you have demonstrated thus far in this thread, you are more likely to lose $15k a day then you are to make it. A person with the knowledge to make such profits on a consistent basis would not seek the answer to your question in the manner that you have. The only good part is that you are doing some research before hand, which shows that you are willing to learn.
Quote from naifwonder:
I am not saying this to discourage you, but to save you money. Given the level of knowledge you have demonstrated thus far in this thread, you are more likely to lose $15k a day then you are to make it. A person with the knowledge to make such profits on a consistent basis would not seek the answer to your question in the manner that you have. The only good part is that you are doing some research before hand, which shows that you are willing to learn.
I'm absolutely willing to learn but the person who is in charge, the one who may present me with an offer, is approaching this from the perspective that he wants me to make 15k a day. Using that assumption, he wants to create some risk parameters that would be appropriate and I'm having trouble wrapping my head around that since I'm use to trading within a certain set of risk limits, and doing the best I can each day.