If you're hot you can generate $200 profit from $200 per day.
If you're cold then $5,000,000 won't generate $200 per day.
If you're cold then $5,000,000 won't generate $200 per day.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
How much capital required to generate $200/day pair trading?
- Thread starter lolatency
- Start date
Quote from bwolinsky:
Quote from rosy2:
before. a lot of volume is done.
fyi, this is automated trading
Can't wait to see you above Buffett in three years then.
bwolinsky,
i find it strange that you (supposedly being an expert trader and system developer) can't seem to grasp the idea that high % returns are not scalable.
I trade a portfolio between 350k to 600k in pairs positions with position sizes at 100 or 200 shares for each layer of my pairs and about 50 pairs, though not all are on at all times, usually between 25 and 35 pairs at a time with as many as 6 layers on some. After factoring in all my costs (commissions, exchange fees, haircut, charting programs etc.) im averaging between 200 and 250 a day. However, it is an average, my worst days are usually around -$1,500 and best days around +4k and everything in between just to give you an idea of the swings I take. It is all relative to your strategy and your appetite for risk but I'd say with 50k in your account you could make 50k/year net easily with very little risk or leverage, no more than 10 to 1 as a maximum, but sticking more closely to 6 or 8 to 1. My advice would be not to jump into it, but wade in lightly and build as you go. If 200/day is your goal work towards it slowly and as your account builds add more and more pairs, rather than double position sizes. I would diversify first, then when your account can handle the swings more as your risk capital grows I would increase sizes starting with your most productive pairs and least risky (tight range pairs) first.
Quote from rosy2:
where i am . 500k is required to generate 5k profit per day doing intraday trading
The question is the outright cost/time required to develop it and maintain it.
That said, bwolinsky's system seems like a reasonable system for an Average Joe. Disregarding his hubris, he does make a good point, "TIME TO TIME" Only, if he had some more industry knowledge and started comparing himself to people out of C2... I think he's OK.
Is he a top developer? Nope, but reasonable. He's done some homework.
Quote from shortie:
bwolinsky,
i find it strange that you (supposedly being an expert trader and system developer) can't seem to grasp the idea that high % returns are not scalable.
They are up to $50 million, just to the point where I'm maxed out on how many overnight NQ, ES contracts I can hold at one time. I'll be below $50 million for awhile, and so will most everyone here.
Actually there are plenty... to name a few: Arnold, Chilton, Cooperman, Cohen, Dalio, Druckenmiller, Dubin, Griffin, Tudor Jones, Kovner, Lasry, Och, Paulson, Rajaratnam, Shaw, Soros, Simons, Swieca, Tepper, etc...
Quote from bwolinsky:
To date, there are only two traders or investors that are on the forbes 400. 1 is Warren Buffett, and the other only has about 1 billion, and his name escapes my recollection b/c he's so unknown.
There are too many variables and it will vary from individual to individual. Last fall it was much easier since the market was melting down. Now it's much tougher. And a lot would depend on ability and even luck.Quote from lolatency:
Assuming you routinely found such pairs to trade. How much of a capital base would you require to say, average $200/day? Informal guess -- I know it depends on random variables, but a guess with regard to the current market would be nice to poll.
Quote from Trader666:
Actually there are plenty... to name a few: Arnold, Chilton, Cooperman, Cohen, Dalio, Druckenmiller, Dubin, Griffin, Tudor Jones, Kovner, Lasry, Och, Paulson, Rajaratnam, Shaw, Soros, Simons, Swieca, Tepper, etc...
I'm not sure how many of those are purely traders. Maybe Soros is the only one I'm familiar with on that list.