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Small Account Challenge aka Warrior Trading Strategy

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Mentioned it in the ISBFF thread, Ross from Warrior Trading is starting over again with a small account challenge. Starting with $500 !!!

Video here: https://youtu.be/7weufrj_3iw

I'm gonna do the same - although starting initially with a Demo account, cause low on cash at the moment, after blowing up my last account, lol.

Would love if more here in the forum would jump on it and do the same. We can then post daily trades in here and compare to what Ross did better/worse than us.

 

Ross is going to break down his rules for the challenge in future videos this/next week, but I guess it's something similar to the below.

So here are the rules:

  • Starting capital: £500 (let's be generous with the conversion rate :D)
  • Trading US open exclusively, that's 14.30 to about 15.30 UK time
  • Strategy is almost exclusively Gap-and-Go, but can also be momentum continuation trades, gap-reversals or momentum shorts after spikes (latter ones are usually restricted to trade by IG though)
  • Max risk per trade: 10% of account size (So that's £50 initially, if starting with £500)
  • Max risk per day: 20% of account size (£100 initially, if starting with £500). Meaning 2 max-losses back to back and out for the day
  • Daily Target: Not sure if we need to set one. Probably somewhere around 10-20% per day to have it balanced with the risk (that's £50-£100 initially if starting with £500). Goal should be initially to make base-hits and not lose any money. Once the account is at £20k or so, we can start hitting for home-runs from time to time.
  • Winning trades % aim is somewhere around 70%
  • Risk-Reward Ratio aim is around 1:1

Tools to use:

  • Broker: IG
  • For trading I'm gonna use ProRealTime provided by IG
  • For Level 2 I'm gonna use L2 provided by IG
  • For scanning pre-market I'm gonna use the scanner from https://trade-ideas.com/ (Demo account sufficient - it's free)

 

Starting today! Who's in?

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Challenge 1: Setting up PRT for a Demo account

Message from IG:

You have activated ProRealTime. As you currently trade regularly with us, the normal monthly fee of GBP 30 has been waived.
ProRealTime will continue to be available to you free of charge if you meet our minimum number of transactions per calendar month, and we will never debit the monthly fee from your account without your prior agreement.
You have activated ProRealTime. If you trade four or more times with us in a given month, you will not be charged for advanced chart access. Otherwise there is a monthly fee of GBP 30. See our Terms & Conditions for details.

 

Obviously not keen on paying the £30 per month. So I'm thinking of still placing 4 trades per month on live to keep it free. Should be possible to maybe take 4 positions on a slow moving asset like an index and close it straight away, so you only pay the spread. Should be way cheaper this way than £30. Like spread on FTSE with size 0.5, costs £0.5. 4x this makes £2 per month.

What do you think of this approach? Makes more sense to me than paying the £30.

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Challenge 2: My Demo account has £20,686 in it. How do I get it down to £500?

Do I need to place a couple of trades to lose it and then charge £500 on it? Lol :D 

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1 hour ago, DSchenk said:

Challenge 1: Setting up PRT for a Demo account

Message from IG:

You have activated ProRealTime. As you currently trade regularly with us, the normal monthly fee of GBP 30 has been waived.
ProRealTime will continue to be available to you free of charge if you meet our minimum number of transactions per calendar month, and we will never debit the monthly fee from your account without your prior agreement.
You have activated ProRealTime. If you trade four or more times with us in a given month, you will not be charged for advanced chart access. Otherwise there is a monthly fee of GBP 30. See our Terms & Conditions for details.

 

Obviously not keen on paying the £30 per month. So I'm thinking of still placing 4 trades per month on live to keep it free. Should be possible to maybe take 4 positions on a slow moving asset like an index and close it straight away, so you only pay the spread. Should be way cheaper this way than £30. Like spread on FTSE with size 0.5, costs £0.5. 4x this makes £2 per month.

What do you think of this approach? Makes more sense to me than paying the £30.

There is also a undefined value consideration not just number of trades so if you did min number at min size they will inform you to either stop using or start paying as they have to pay PRT for each user.

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1 hour ago, DSchenk said:

Challenge 2: My Demo account has £20,686 in it. How do I get it down to £500?

Do I need to place a couple of trades to lose it and then charge £500 on it? Lol :D 

Don't know about PRT but on IG's web sades platform it can't be reset lower, only higher so you would need to blow the demo account then refund it.

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could be tricky with a £500 a/c

Capture aapl.PNG

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1 hour ago, DSchenk said:

You have activated ProRealTime. As you currently trade regularly with us, the normal monthly fee of GBP 30 has been waived.
ProRealTime will continue to be available to you free of charge if you meet our minimum number of transactions per calendar month, and we will never debit the monthly fee from your account without your prior agreement.
You have activated ProRealTime. If you trade four or more times with us in a given month, you will not be charged for advanced chart access. Otherwise there is a monthly fee of GBP 30. See our Terms & Conditions for details.

Hey @DSchenk- do keep in mind that that it states 'However, if you don't meet this requirement, or your trading activity is of extremely low value, then a £30 per month fee will apply on the last day of every calendar month.' But if this is the case we will turn off ProRealTime and notify you. :) 

image.png

1 hour ago, DSchenk said:

Challenge 2: My Demo account has £20,686 in it. How do I get it down to £500?

Do I need to place a couple of trades to lose it and then charge £500 on it? Lol :D 

You're correct, the best way is to open some large trades, preferably with markets that have large spread, to lose the money. From there, top it back up on the MyIG page by selecting Demo account> Payments. 

 

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32 minutes ago, Caseynotes said:

There is also a undefined value consideration not just number of trades

 

 

Fair and obvious ... the British way of doing business

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25 minutes ago, elle said:

could be tricky with a £500 a/c

Capture aapl.PNG

Yep, Apple and other large cap stocks are off limits.

Focus will be on stocks under $10

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16 minutes ago, CharlotteIG said:

Hey @DSchenk- do keep in mind that that it states 'However, if you don't meet this requirement, or your trading activity is of extremely low value, then a £30 per month fee will apply on the last day of every calendar month.' But if this is the case we will turn off ProRealTime and notify you. :) 

Thanks for the reply @CharlotteIG

I should be fine for this month anyway, and at the end of next month we shall see how far we will have come with this approach. Maybe in a position then to place a few trades on live already

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Level 2

Having the same issues again as a few weeks back.

Subscribed to the relevant exchanges via IG.

But no Level 2 data showing up in L2.

@CharlotteIG Can you advise please what's wrong?

 

image.thumb.png.13230c3e41dfddd8609ccb590717e884.png

image.png.0a0a0141b3852fc7b65fead1be9a1cc7.png

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10 minutes ago, DSchenk said:

Level 2

Having the same issues again as a few weeks back.

Subscribed to the relevant exchanges via IG.

But no Level 2 data showing up in L2.

@CharlotteIG Can you advise please what's wrong?

 

image.thumb.png.13230c3e41dfddd8609ccb590717e884.png

 

@DSchenk- For US exchanges we can't offer L2 order book data, which is why the charges are the same for L1 and L2. Apologies that hasn't been clarified sooner. 

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2 minutes ago, CharlotteIG said:

@DSchenk- For US exchanges we can't offer L2 order book data, which is why the charges are the same for L1 and L2. Apologies that hasn't been clarified sooner. 

Ah ok. That's unfortunate.

Does anyone know a provider who offers L2 data for the US market - for a similar price like IG does for UK market - couple of £ per month? 

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Will be interesting to see :)

Maybe ADVFN provides L2 info?

 

Edited by dmedin

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14 minutes ago, dmedin said:

Will be interesting to see :)

Maybe ADVFN provides L2 info?

 

ADVFN don't do US L II either.

image.thumb.png.5718221bf6ad37f2397053f6dc2a8545.png

 

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Nice @elle

My watchlist today was:

image.png.a81680f33f992d1511a1774b4856d049.png

 

Traded mostly XNET and a little AUY.

Went well. Up £81 (+16.2%)
Account balance Day 1: £581

image.png.bfdb9d316d3d8517cdaa766d3f841870.png

 

XNET

Classic Gap and go

My strategy was to take profit as quick as possible. Typically every $0.20. Scalped myself up that way pretty well

image.png.92cc0a3e4cd420e17de90b6b22f840e5.png

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Here's how I configured my platform btw.

 

Screen 1

Main trading screen with the following windows (from top left to bottom right)

  • Watchlist
  • Scanner
  • Alerts
  • Charts (5min, daily, 1min)
  • Level 2 window (although not working as discussed above)
  • Realtime Time and Sales Window
  • Order Entry

image.thumb.png.f53ce3d0b96b4656241c3c5d5110abcd.png

 

Screen 2

  • Executed Orders
  • Open Positions
  • 2 more charts for stuff I'm watching next to my main trading window
  • Excel "Cheat Sheet" which I use for calculating position sizes and keep track on available funds, margin, etc. (cause PRT doesn't provide that by default for some odd reason)

image.thumb.png.f5f53a76373acd60b87e645658c45729.png

(The daily PnL shows -£20,000 cause I first needed to deplete the demo account down to £500 before I could start trading with the small account challenge)

Edited by DSchenk
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Slight change of game plan for me.

On short notice flying to South East Asia today.

US Market Open is over there at 21.30, so not too sure how much I'm going to be able to trade.

Possibly need to re-start the small account challenge when I'm back, end of November.

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On 25/10/2019 at 14:07, DSchenk said:

Account size sorted. Let the games begin :) 

image.png.7e654ec895a77d910aeecce6a7259a35.png

How did you do this? :O

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22 minutes ago, DSchenk said:

Slight change of game plan for me.

On short notice flying to South East Asia today.

US Market Open is over there at 21.30, so not too sure how much I'm going to be able to trade.

Possibly need to re-start the small account challenge when I'm back, end of November.

Are you an international Spy? lol

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3 minutes ago, nit2wynit said:

How did you do this? 😮

He lost the exact amount to bring his balance to 500

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12 minutes ago, mark27 said:

He lost the exact amount to bring his balance to 500

and how exactly can you lose the exact amount? :O

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calculate what you need to lose to bring your balance to 500 then work out a stop loss x appropriate amount a point

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15 minutes ago, mark27 said:

calculate what you need to lose to bring your balance to 500 then work out a stop loss x appropriate amount a point

It sounds simple but even using Amazon i can't lose 20k in a hurry!

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30 minutes ago, mark27 said:

calculate what you need to lose to bring your balance to 500 then work out a stop loss x appropriate amount a point

It's ok.  I've found the smallest stock i could and done it that way.  Thanks :D

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On 25/10/2019 at 15:51, DSchenk said:

image.png.92cc0a3e4cd420e17de90b6b22f840e5.png

 

Are the green orders your manual entries and the red crosses your sells?  If so I would be interested to know your rational for buying and selling at those points.  Towards the end you have a big bull run, and I cannot understand why you would be closing in and out of that so much when you could let it run.

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Woohoo.   @DSchenk Well.  I did cut my win a little early (just as well if you take a look at the chart) but they were close enough to 1:2 PL for me.  I didn't manage to get my Balance down to £500, but it's not too important for now.  I've made a note of my New Starting balance which was £1877 I think (i'll check)  Profit went up to £35 initially and come right back down to £0 when I was about to close it thinking it failed.  Let it run and it got back up to +£93 with a risk of £60 just below the Green Candle at around the 600p mark.   However, I was lucky here. (I know-no place for luck)  I had to use the 15M to see it break above the previous Red Candle.   In at 624 Out at 655.  Margin of just under £500.

1 Trade.  Day 1 Win :D.  Up 25%  :D



Buuuut, this was a Bad Trade.......Too Slow and already  decent Pull back on the 5M.  I've been very very Lucky.  Duly Noted.

 

 

Day 1 Lucky.jpg

Edited by nit2wynit
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It aint much but I was reaching for that £50 I reckon.  1:1 PL good enough for me :D


EDIT:  Hmm.  Still going down.  NM.

 

Day 1 Last one.jpg

Edited by nit2wynit

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