Taking $5K to $250K by year end

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Quote from traderyin:

ON surface, 5k to 250k is a massive return! But don't forget the use of leverage. He is actually using the 5k to control ~65-130k notional value of asset. Even creating 250k out of 130k is not an easy feat. Assuming that he keeps the equity growing so the use of leverage is on an increasing scale/level- by the time he reaches 12-13k equity, he can use it to trade 3 contracts....and the effect of compounding + leverage would take care of the rest....stilll, it is quite a difficult goal

I really hope he can achieve it, it would serve as inspiration for manys....
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I think you understated the challenge. It is monumental. But what the hell: no pain, no gain.

Thanks for following the Journal.
 
<i>"ON surface, 5k to 250k is a massive return! But don't forget the use of leverage. He is actually using the 5k to control ~65-130k notional value of asset. Even creating 250k out of 130k is not an easy feat."</i>

If 5k capital to leverage = 130k notional,
then 250k capital = 6,500,000 notional

There is no difference... money is money. Notional, leverage, % are all moot points. $5k cash to $?? cash regardless of widgets traded is the same destination regardless.

So far, so good in the quest. Avoid any single event blowouts, and the year-end audit will be worthwhile :)
 
Quote from austinp:

<i>"ON surface, 5k to 250k is a massive return! But don't forget the use of leverage. He is actually using the 5k to control ~65-130k notional value of asset. Even creating 250k out of 130k is not an easy feat."</i>

If 5k capital to leverage = 130k notional,
then 250k capital = 6,500,000 notional

There is no difference... money is money. Notional, leverage, % are all moot points. $5k cash to $?? cash regardless of widgets traded is the same destination regardless.

So far, so good in the quest. Avoid any single event blowouts, and the year-end audit will be worthwhile :)
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Well, that won't happen because of the strict stop loss control. But, if the setups fail, you are correct.
 
Quote from allenhobbs:

I think you understated the challenge. It is monumental. But what the hell: no pain, no gain.

Thanks for following the Journal.
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I agree with you completely. Challenge is monumental indeed.
It seems, to me, that you are overtrading lately like you are forcing yourself to trade .
 
Quote from austinp:

<i>"ON surface, 5k to 250k is a massive return! But don't forget the use of leverage. He is actually using the 5k to control ~65-130k notional value of asset. Even creating 250k out of 130k is not an easy feat."</i>

If 5k capital to leverage = 130k notional,
then 250k capital = 6,500,000 notional

There is no difference... money is money. Notional, leverage, % are all moot points. $5k cash to $?? cash regardless of widgets traded is the same destination regardless.
More...

I disagree with this statement. Calculating a return on Assets which are not leveraged is standard practice for determing the quality of asset growth. By definition - these derivatives we are trading are highly leveraged. The value for the ES is approximated by multiplying the Point Value x the Contract Price which is $50 x 1370 say = $68,550.

Allen would have to have roughly $68000 Dollars in his account in order to trade 1 contract WITHOUT leverage. Over the life of this challenge - Allen willl continue to add contracts and end up around 20 contracts ... let's say the average number of contracts traded would be 12 ... This means that there would have to have on average a deposit balance of approx. $750,000. This makes the comparable gain that Allen is trying for equivalent to about a 33% gain on a non leveraged basis.

I think it's quite achievable and of course - like most of us - wish that Allen is able to maintain the discipline to follow through on his challenge and achieve his goal.
 
Quote from Hombre:

I agree with you completely. Challenge is monumental indeed.
It seems, to me, that you are overtrading lately like you are forcing yourself to trade .
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Why do we keep saying it is MONUMENTAL ??? He has already demonstrated the ability to make the type of return needed to achieve the goal following the plan he has laid out.

By making it seem so difficult a task - we make the barrier even harder to get over.

Just stick to the plan. No big deal. Just trade the plan. No emotion. Just discipline is needed.
 
Quote from Hombre:

I agree with you completely. Challenge is monumental indeed.
It seems, to me, that you are overtrading lately like you are forcing yourself to trade .
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Not exactly. Yesterday, for example, I made a big mistake--violated my rules. I had made the daily goal early and decided to get more in the afternoon only to get a few quick stopouts. I then tried to gain back the points I had lost to no avail. At least my broker made a few bucks.:(
 
Quote from bakrob99:

Why do we keep saying it is MONUMENTAL ??? He has already demonstrated the ability to make the type of return needed to achieve the goal following the plan he has laid out.

By making it seem so difficult a task - we make the barrier even harder to get over.

Just stick to the plan. No big deal. Just trade the plan. No emotion. Just discipline is needed.
More...
You are 100% correct.
 
Very interesting journal

I commend anyone that not only is making steady profits but also has the patience and self-discipline to maintain a thread like this -especially in light of those ET posters that seem to be motivated by shooting people down.

This thread has certainly got me thinking about a bracket-out strategy I have been toying with for sometime.

Question for you Allen - you are clearly a competent trader making great returns. What are your plans post the completion of this exercise?
 
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