Micro E-mini Madness (2% per day)

[tiddlywinks]

Google FTMO

Thanks.

I spent 2 minutes looking at FTMO, only to stay abreast of the industry. The answer to my original question could be simplified even more... Combine-type program specifically for Forex, located in Prague, Czech Republic.

I did misspeak however saying the monthly fee would be a guaranteed loss.
The site states... The fee is refundable with the first profit withdrawal.
IOW, If you pass ** AND ** once funded, you make enough profit eligible for withdrawl.
I have no idea what criteria is for withdraw. Don't care either.

The company is registered by the municipal court in Prague, Czech Republic. Sleep well.

 

[sstheo]

I have had evaluation accounts with Top Step Trader, OneUp, and LeeLoo. I have not tried FTMO or Earn2Trade or any of the many others out there. I purposely left off the name of the company I am using currently. Why? Because this journal is about how NOT to get sucked into their vicious game (if you are new to trading), but to strike out boldly on your own and grow your OWN MONEY from $1,000 to $10,000 and beyond, keeping 100% for yourself (except for commissions). By using the Micro E-minis and thinking like an acorn, with good watering and sun (good trading), our accounts can become mighty oak trees with $$$$'s for leaves.

My live account is now funded and I should be taken my first of many Micro E-mini trades tomorrow.

 

[sstheo]

My AMP account is live! Starting balance is $1006. Here we go...

I have decided to use a fixed stop, but my target will be flexible.

STOPS. I am only trading the NQ and the YM, which each have 50 cent tick sizes. My stop will be a maximum of 40 ticks, or $20 on each. Each max loss then represents 2% of my starting balance. 5 losses would take me down $100 (per contract). With a bigger stop than I am used to, I should not have to be as quick to take profits, and maybe (just maybe) I can learn to do something other than scalp. In all cases, if I feel the market is moving against me, I won't hesitate to close the trade before my stop is hit.

TARGETS. I used to be satisfied with 7 to 10 ticks on the NQ, but this won't work with the Micros because of the extra (relative) fees, and also because of my new "large" stop size. So I am shooting for bigger moves, but trying hard to get at least 20 ticks. This would be $10 gross profit per contract. But I am going to try to "let my winners run" which I have not been able to ever do in 13 years as a scalper.

(Some may say "You have to have a Risk:Reward ratio of at least 2:1." I say "Oh yeah, watch this!" -- But that is the topic of another post)

As I was writing this I took my first trade long after a big down day in the markets, looking for a rebound:

Entry was 7,548.75
Exit was 7,554.00
Gross profit was about $10.
AMP verified my Round Trip (RT) cost per trade was $.78

Here is the new balance on my platform, so the numbers don't seem to add up precisely, but I will figure it out.

Off to a good start....

p.s. I got started late today because of when the wire hit, and so I only did 1% today ($10/$1,000), but I will definitely try for 2% tomorrow.

 

[sstheo]

I wrote "Risk:Reward of 2:1," I meant "Reward:Risk of 2:1." I still have an inverted Risk to Reward ratio in my trading, but as long as I stay above 80% win ratio I do fine. My next goal is 1:1.

I also said that I will be trading the NQ and YM, but of course I meant the MNQ and MYM.

 

[sillyw10]

It is a demo account that you pay a fee for. You attempt to reach the companies profit objectives. If you do, you will qualify for a live account with other peoples money that you manage. At FTMO, they pay you 70% of profits made per month. If you violate one of the risk parameters for the month, they basically fire you.

oh..he meant a trial account with a prop firm..yes..the usually charge $200 for first loss..then $100 to top up..load of rubbish..those who are lucky enough to get past the trials usually blow up after a short period..why..simple.. because they haven't a clue what they are doing

 

[sstheo]

This is how I will keep track of my progress. I will post this at least once per week:

 

[sstheo]

Here are my trading rules to review each day before trading.

1) Initiate trades only between 9:35 a.m. ET to 11:30 a.m. ET.
2) Trade a maximum of 1 contract per $500 in the account.
3) Watch the calendar for news releases, and avoid trading them.
4) Max stop is $20 per contract. This is 40 ticks on MNQ and MYM.
5) Notwithstanding the 40 tick buffer, get out whenever the edge is gone.
6) Target is $10 per contract. This is 20 ticks on the MNQ and MYM.
7) Try for much larger profits, so be patient and either set a target or simply trail the position.
8) Trends. Draw trend lines, and wait for pullbacks in a trend to initiate trades.
9) Ranges. If in a range, trade the edges toward the midline. Because of the increased number of needed target ticks, the range must be large.
10) Try to get 2% per day average total profits
11) Max daily stop is 5%.
12) Do not force a trade. If no good setups present themselves, then do not trade. "Flat" is an acceptable position.
13) Watch larger time frames and trade within the direction of the larger trends.
14) Do homework before the market opens. Determine Value Areas and Support and Resistance areas and mark these on my charts.
15) Watch the ES, NQ, YM, and RTY for directional clues. RTY is often the leader.
16) Using MNQ and MYM, only trade the stronger one up and the weaker one down, despite the greater range of the MNQ.
17) Do not try to catch short falling knives or stop long freight trains. Wait for higher probability turns as evidenced by a break of 2 small prior S or R levels.
18) Use the Cumulative Delta and Volume Delta charts on the full E-mini to see the buying or selling aggression.
19) Never trade without an emergency 40 tick stop in place and never widen it.
20) Be optimistic and follow your rules. The Holy Grail is Discipline. You will succeed.
21) Refine this list as needed!

 

[sstheo]

First two trades today:

In reverse order:

That first flush down was a rotten way to start the day, but we HONOR OUR STOPS and we GET BACK UP AND KEEP GOING. On the regular YM, that would have been a $200 loss!!! But we are safely trading 1/10 the size.

 

[sstheo]

I know some of you wanted to see me take a loss-- not because you will me ill-will, but because you wanted to see me follow my rules. Well there you go...

 

[sstheo]

Check out this run up! I clearly had the right idea on both trades, but I need to wait longer for the reversal. The big boys did one final push lower to shake ME out and then took it back up to yesterday's POC (Point of Control) and beyond.