I spent 2007 paper-trading...ready for real time?

[cszulc]

I've been using the paper trading account with Interactive Brokers, had an account there with some blue chip stocks and covered calls, not too much of a gain there last year.

Mainly in a trade for anywhere between a minute and 20 minutes, longer if it's working for me well. In the e-minis, I probably have at most 5 contracts on at once while I'm in front of the screen, but usually 2-3. For my grain and meat spreads, it ranges from 4-8 depending on my risk outlook and opportunity. My stops were usually 3 points in the ES, and 30 in the YM (both equal $150). The stops didn't get hit much, and sometimes were a little wider during volatile times. Most I ever lost on a trade was somewhere between $700-$800, and most I ever made was $1,000.

I'm probably going to start this week and might start a Journal here in doing so for my spreads.

 

[crgarcia]

Quote from newtrader8:

Decided to do paper-trading from the beginning of last year to now. Basically did about 3500 contracts in the ES, 500 in Soybeans, and some 300~ in grain and hog spreads.

Factoring in IB commissions, I took the $25k starting paper-trading account to $128,404.90 by last Friday. I have done this with both fundamental and technical research, being about 20% and 80%, respectively. I never fell below $24,800, so I was profitable consistently from the beginning.

I'm in front of my computer when in a trade, unless it is a hedged spread in grains or the Lean hogs.

What do you think? I believe I can replicate these returns with real money. I only work from 11am to 6pm, so I can trade the open from 8:30 (central time) to when I leave about 10. I also trade soybeans and wheat in the evening where I see decent liquidity.

You can start with real money, however now commodities have mostly plateaued, and in the stock market, things aren't clear now, the market may plunge further.

You daytrade? If so, be aware that paper-trading is very different than reality, in such a small time frame.

 

[cszulc]

Quote from cszulc:

I've been using the paper trading account with Interactive Brokers, had an account there with some blue chip stocks and covered calls, not too much of a gain there last year.

Mainly in a trade for anywhere between a minute and 20 minutes, longer if it's working for me well. In the e-minis, I probably have at most 5 contracts on at once while I'm in front of the screen, but usually 2-3. For my grain and meat spreads, it ranges from 4-8 depending on my risk outlook and opportunity. My stops were usually 3 points in the ES, and 30 in the YM (both equal $150). The stops didn't get hit much, and sometimes were a little wider during volatile times. Most I ever lost on a trade was somewhere between $700-$800, and most I ever made was $1,000.

I'm probably going to start this week and might start a Journal here in doing so for my spreads.

Forgot to add my advice:

newtrader8,

I am in the same boat as you. I've done options tradng, but never really futures. I've been paper trading a little, and think you're ready. You have my approval , but don't blame it on me if you forget.