Small Account Challenge aka Warrior Trading Strategy

[CharlotteIG]

15 minutes ago, DSchenk said:

ok nice one @Caseynotes

quickly checked today's scanner and seems to match

SAVA, BHAT, CRIS not tradeable, cause market cap too low

@CharlotteIG How can we put a request in with IG to lower that threshold to maybe $50m?  That would help us a lot 

@DSchenkThe desk don't offer as many smaller cap stocks because there's not as many people wanting to trade the market and due to the price the amount being hedged is small. However I can see there is demand for these so I will speak with them and update you. 

 

I will also see if the minimum cap for US stocks can be reduced. The cap itself is only a guideline. 

 

[dmedin]

54 minutes ago, CharlotteIG said:

@DSchenkThe desk don't offer as many smaller cap stocks because there's not as many people wanting to trade the market and due to the price the amount being hedged is small. However I can see there is demand for these so I will speak with them and update you. 

 

I will also see if the minimum cap for US stocks can be reduced. The cap itself is only a guideline. 

 

 

Any chance you can ask the Big Whigs if they will allow us to trade stock options on the platform?

I don't see why not? 

[DSchenk]

Ok, another red day for me today.

Wasn't really having any luck today.

First I was trading ECPW, but got stopped out at break-even 4 times in a row.

Then I jumped onto KLXE and made some nice profits: £82

I thought only £18 short of my daily goal, must be possible to find something else to trade.

I saw WLL popping up on the Momentum screener and jumped in. That's when things went wrong.

I nicely caught the end of the move. God dammit! Once I realised that I tried going short, but also didn't work out. Although would've been a nice one to short - but guess I was already at the end of my patience at that point.

Learning of the day: Realise when it is a slow day and take the profits you made, no matter how small. Small profits are still better than small losses  

 

End of the week 2 stats of the small account challenge:

Weekly Performance: -£117
Account Balance: £791
Total performance: +£291

 

[dmedin]

@DSchenk All still on demo?  Not tempted to have a flutter?  😺

[DSchenk]

Still on Demo mate.

Will only go back to live in January and only if the Demo account has at least grown to £2k.

[CharlotteIG]

On 06/12/2019 at 15:35, dmedin said:

 

Any chance you can ask the Big Whigs if they will allow us to trade stock options on the platform?

I don't see why not? 

@dmedin, this has been something that a lot of clients ask for. I will ask our feedback team. 

We're set up for other markets so I'm not sure why we're holding back on stock options. If it is still a no, I will give you their reason why. 

 

[DSchenk]

Loads of good stuff happening today

[DSchenk]

That's what I'm gonna be looking at.

Gameplan: Focus on basehits (£10, £20 profit). Don't go into red. Daily goal: £100

[nit2wynit]

5 minutes ago, DSchenk said:

That's what I'm gonna be looking at.

Gameplan: Focus on basehits (£10, £20 profit). Don't go into red. Daily goal: £100

That's my boy

I've been distracted again; my woman's B'day weekend, but it's today.  I now need to make a card lol.

I'll skip today coz not in the right frame of mind.

Catch up again later and back on it tomorrow. 

 

[DSchenk]

Mindset is everything, but family is more important! Enjoy!

[nit2wynit]

lol.  As luck would have it, I still had my Aurinia Pharma trade going from Friday.  Just made £50

[dmedin]

25 minutes ago, DSchenk said:

Mindset is everything, but family is more important! Enjoy!

No woman, no cry me say. 😢

[DSchenk]

Alright, it's been a psycho thriller today

Ending the day down: £107.40

Good start with PCG, two trades in the green. Then two trades in the red. Essentially back to 0.
Then saw TGTX going wild on the scanner, so jumped in. Obviously, I made it again to just buy the top of the move. Happens to me all the time. Lost a few bucks on that.

AR, also from the watchlist was next. Total thriller. My first position went straight into the red, then I took another position on the reversal. Worked out in the end with £36 and £30 profit on those two positions, but been sweating all the time.

In between small trades on TGTX again, but stopped out at break-even.

Finally DTIL. Shouldn't have really traded this. Down 40% on the day and was trying to catch some reversals. Didn't work out. Should've sticked to gap and go, then at least would've finished the day on break-even.

My account is still up, but back at £683.7.

Let's see if I can bring it back to £1000 this week.

Edited December 9, 2019 by DSchenk

[dmedin]

I still don't recommend trading on 5 min charts.

[nit2wynit]

8 minutes ago, DSchenk said:

Alright, it's been a psycho thriller today

Ending the day down: £107.40

Good start with PCG, two trades in the green. Then two trades in the red. Essentially back to 0.
Then saw TGTX going wild on the scanner, so jumped in. Obviously, I made it again to just buy the top of the move. Happens to me all the time. Lost a few bucks on that.

AR, also from the watchlist was next. Total thriller. My first position went straight into the red, then I took another position on the reversal. Worked out in the end with £36 and £30 profit on those two positions, but been sweating all the time.

In between small trades on TGTX again, but stopped out at break-even.

Finally DTIL. Shouldn't have really traded this. Down 40% on the day and was trying to catch some reversals. Didn't work out. Should've sticked to gap and go, then at least would've finished the day on break-even.

My account is still up, but back at £683.7.

Let's see if I can bring it back to £1000 this week.

Buddy, you don't need me to tell you....but just in case I do;  You're over trading and not sticking to your trading plan.   To the rule, you were up £35, but then lost 4 trades in a row to a total of -£100.   It's not just the value, but 4 losing trades in a row means you're off game.   That's it.  You're done.  Personally, when you got -£50 it was over for the day.   At least we're still learning, but giving it away like this and that 5k marker is a long way off.   I was up £300 last week in 2 days, but I think it was less than 10 trades in total and less than 1 hour trading.

However, that's OK, coz, although we might have detailed what we're hoping to do, it's still OK to Make Mistakes so long as we're learning what Not to Do going Live.

Because it's the Demo,  I've not been paying attention or been distracted, I've still been placing Random Trades to see what happens at various times after the bell.  What is happening is the more Random trades I place, the more losses I incur.  We're either trading Breakouts or looking for Reversals.  Trying to play both one after another on the same stock is a sure fire way to give back profit you've just made.  Remember, the direction either long or short is only assured for a few minutes after the bell.  Playing after this and you're in random territory. 

Limit how many trades you will place as well as maximum loss and profit.  I know you know this, but I like to hear it back to for my own sake also.  

Let's see what tomorrow brings for us both.

[nit2wynit]

Just to go over some of the principles again re; P/L

IF our success is 50/50 then we need 1:1 just to stay in the game.  If we place 5 trades per day, then 2.5 will fail and 2.5 will win.  The value must be the same.  How we play from here is based upon our own success rate.  Your success rate will determine either your PL target OR Price per Point.  If you go back now after 2 weeks and count the winning trades, losing trades, Loss size etc. it will give us a heads up on how the strategy is working and where it needs to be amended.

IF we're achieving 80% success, then 4 out of 5 trades are winners, but if those 4 winners are only £20 each, and the 1 Loss is £80, then the Win/Loss ratio means nothing.  The Loss also needs to equal -£20.

IF our P/L is 2:1, then we can still afford 50/50 win loss rate.  This way we'll still be earning.  It allows for more mistakes, but the 2:1 makes up for it.

With 2 wins from the start, but then 4 consecutive losses that's er....66% loss rate.  

I'll stop here coz I think you know this too.

[dmedin]

Yep ...

The more you trade, the more you lose.

[DSchenk]

Yeah agree, bit of overtrading.

Analysing my past days, it seems that if I had closed the books at like 3pm (half an hour after market open), I'd be better off. My first 2-4 trades of the day seemed the ones with the highest success rate. Straight at the open, first pullback. Afterwards I typically jump in too high and lose it again.

Let's see what tomorrow brings, but maybe I should work with dynamic position sizes.

Like first trade of the day with 100% size. If in profit, then scaling back to 50% and after 3pm to 25%.
That way you might add a little more to your profit or lose a little, but not all the profit you made.
Question is, if first trade is in the red, then downsizing won't bring you back in the green, so then either call it quits straight or go in again with 100% until max loss hit.

Mindful this goes against Ross strategy though. Think he plays the first trade of the day small (create a small cushion) and goes up in size afterwards.

Dunno

[DSchenk]

1 hour ago, dmedin said:

I still don't recommend trading on 5 min charts.

What chart would you recommend then?

I think in the first 10 mins of the day, the 1min chart works best, everything else is just a single bar jumping up and down - no entry possible.
Afterwards, the 5 min chart should work pretty well.

I might be focusing too much on the 1min chart after like 3pm, where the 5min might be better suited.

[dmedin]

Is there any evidence that this Ross character actually makes money?

As for time frames ... I dunno.  1 minute sounds absolutely insane.  I have tried 15 minutes, and even then the candle patterns are meaningless as you can get huge reversals one after another.

[DSchenk]

Well you can get reversals with every chart size. Question is are you trading the reversals or are the reversals catching you off?

2 minutes ago, dmedin said:

Is there any evidence that this Ross character actually makes money?

Going live daily and doing it in front of the camera not enough?

[dmedin]

12 minutes ago, DSchenk said:

Going live daily and doing it in front of the camera not enough?

 

Are these videos free or do you need to subscribe?

I've seen one video where he is basically just mouthing off to the camera ... all I care about is seeing the trading and whether it works.

[dmedin]

And if it does ... all we need to do is all copy him and we'll all be millionaires like him?

[dmedin]

Looking at his Youtube channel, wow, I'm surprised he has time to trade with all those videos - not just recording them but editing and uploading them must be a full time job.  Not to mention writing a 'best selling' book

 

[DSchenk]

53 minutes ago, dmedin said:

Are these videos free or do you need to subscribe?

You can watch the mid-day market recap for free every day, but the live trading is his paid program

45 minutes ago, dmedin said:

And if it does ... all we need to do is all copy him and we'll all be millionaires like him?

Plain copying him won't work, cause of the Spread-Betting limitations me and @nit2wynit call out. But essentially that's what we're trying to do. Not as easy as it sounds though  as you see in the thread - you still need to overcome your own emotions. A strategy is just a strategy - pulling the trigger at the right time is a whole other level.

42 minutes ago, dmedin said:

I'm surprised he has time to trade with all those videos - not just recording them but editing and uploading them must be a full time job

Well, trading is only 2 hours per day, right? The rest goes into his business:

• His youtube channel probably makes around $50k a year in ad revenue
• He sells his book (I bought one). His rank is about 50,000, that's about 5 books sold per day or about 2000 per year. Let's say he earns $5 per book sold, that's another $10k per year.
• His trading chatroom is between $99 and $197 per month, let's average at $125 per month or $1,500 pa. How many of his 400k Youtube Subscribers will be signed up there? 0.1%? That's 400 and another $600k income per year.

Totalling these 3 at $660k income. Not even considering trading.

You see, succeeding in business always wins.

 

[dmedin]

22 minutes ago, DSchenk said:

Totalling these 3 at $660k income. Not even considering trading.

So now you see how he makes his money, and it's not from trading.

[nit2wynit]

1 hour ago, dmedin said:

Is there any evidence that this Ross character actually makes money?

As for time frames ... I dunno.  1 minute sounds absolutely insane.  I have tried 15 minutes, and even then the candle patterns are meaningless as you can get huge reversals one after another.

dmedin old pal old buddy.  Of course it works.  I proved it to you months back when I was Live.  It's also important to know this Ross Character lol, is one of many thousands of people who make money trading Market Open.  It's not a new thang.

I didn't lose my account because of breakouts.  I lost it coz I wasn't trading breakouts. 😮  I lost coz I wasn't playing to my chosen strategy.  Why do you think it doesn't work?  We've both shown you even on the Demo (though we both haven't stuck to the plan as we should.  ha).

I learned when Not to Trade, How Long to trade etc.  But most of all I learned to go with what I know and trust.

I don't really know how you keep doubting it.  It's not magic lol.  It's going up and down at market open.  Cover your stops.  Get in get out.   Don't over trade.


Has Anything at all ever worked for you?

[dmedin]

8 minutes ago, nit2wynit said:

Has Anything at all ever worked for you?

Nope, the only thing that comes closest to being 'proven' to work is buying and holding a diversified portfolio, and using dollar/pound averaging by drip-feeding small amounts of money into to your portfolio at regular intervals.  No retail trader can consistently call tops and bottoms.  If they did, Goldman Sachs would hire them and pay them millions to manage their money.

Edited December 9, 2019 by dmedin

[nit2wynit]

26 minutes ago, dmedin said:

Nope, the only thing that comes closest to being 'proven' to work is buying and holding a diversified portfolio, and using dollar/pound averaging by drip-feeding small amounts of money into to your portfolio at regular intervals.  No retail trader can consistently call tops and bottoms.  If they did, Goldman Sachs would hire them and pay them millions to manage their money.

....then give him my number lol.

[dmedin]

1 minute ago, nit2wynit said:

....then give him my number lol.

 

This is hopeless, I mean really.  Wtf am I doing with my life ...