Is it possible to earn average 2 points per contract a day?

N

ninja11

Hi everybody,

I am trying, looking and backtesting for many years for a tradingstrategy, which could take average 2 points per contract a day.
I worked really very hard for my tradingskills. But I wasn't be able to find such strategy.
The best one I found has Hit ratio 57%, average loss and average win were equal. The Profit factor were around 1,35.
average 1,4 Trades a day. So I was be able to get around 0,6 point per contract a day.

I think it is to less.

So I want ask you, is it possible (realistic) to get 2 point per contract a day?

Please help me! I need your help! I am totally frustrated!
 
Anything is possible.

It's possible you will be asked to man the next Moon Landing.

It's possible you will learn something of value here on ET.

It's possible a meteor will hit you in the head in 5 minutes.


tick8meteor.jpg
 
I have several that backtest better than that over the last year. I've had quite a few that substantially exceed that in various equities over a trailing 12 month period.


The primary issue is, one you find a strategy like that via backtest, is that market dynamics tend to change, and that impacts what strategy is most appropriate.
 
The question raised by this thread co-incides with a recent PM enquiry I received, namely what "is possible for a good retail trader to pull in terms of let's say the daily HL?"

How many points can a trader make? How much is it possible to make in relation to the days HL range? Is it 6xHL or 3xHL or 1xHL? Or can it be only a part of the HL, 1/2 or 1/3 or 1/4?

I would not tell anyone what you can expect to get. If it helps, I can reveal though that a great deal of points daily may be extracted with a high degree of market knowledge and experience by micro trading the session, open to close.

If I take CL I can tell you what the maximum is. I use a measurement of minimum 35 points bar close to bar close (1m) or simply 40 points minimum from the last intraday top or bottom to measure a swing. So a move of 40 or more points constitutes one swing. A swing up followed by a swing down (or vice versa) is a gyration. On that basis Friday's CL (March 26 2010: 10am- 2.30pm) offered 637 points in 11 swings at a mean average of 57 points per swing. If I bring in the early market and pre-market score (from 6.09am to 10am) that adds 342 points. So you have total of 979 points. That is an awful lot of points.

Assuming daytrading, the practicalities for a start-up retail trader working from home is to do your sim practice with a methodology you can prove to yourself to be reliable. This may take a long time. But if you can find or devise a reliable system, practice it on sim until your daily trading results demonstrate net gains per day.

Next, remember to trade with one lot only. Its far better to be trading successfully and assuredly with one contract before you consider going to any larger size.
:)
 
Quote from ninja11:

Hi everybody,

I am trying, looking and backtesting for many years for a tradingstrategy, which could take average 2 points per contract a day.
I worked really very hard for my tradingskills. But I wasn't be able to find such strategy.
The best one I found has Hit ratio 57%, average loss and average win were equal. The Profit factor were around 1,35.
average 1,4 Trades a day. So I was be able to get around 0,6 point per contract a day.

I think it is to less.

So I want ask you, is it possible (realistic) to get 2 point per contract a day?

Please help me! I need your help! I am totally frustrated!
More...

How can someone answer that when you don't even state what trading instrument you're trading. :eek:

Further, volatility has a great impact on the bottom line and if your goals of 2 points is unrealistic in comparison to the volatility...it ain't gonna happen.

Mark
 
Quote from ninja11:

... So I want ask you, is it possible (realistic) to get 2 point per contract a day?

Please help me! I need your help! I am totally frustrated!
More...
No ... :)
 
I don't see what the problem is here. Almost every simple trading system will give you at least 2 points a day per contract on the Dow futures.
:D
 
Assuming US Index Eminis...

Considering you said average, yes, very possible. If you had said every single day, I would have said no.
 
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