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DSchenk

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Everything posted by DSchenk

  1. He mentioned he's gonna make a video shortly explaining what costs he is occurring with the small account. He obviously needs to use a different broker than his usual one, cause he needs to work around the PDT rule in the US (until his account has reached £25k). So he will need to use an offshore broker rather than a US one. Btw, just started a new thread about this: https://community.ig.com/forums/topic/7773-small-account-challenge-aka-warrior-trading-strategy/
  2. 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.
  3. 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 ) 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?
  4. Good news. Ross from Warrior Trading is starting over again. With a small account challenge. Starting with $500 !!! His last small account challenge started about 3 years ago, also with around $500 and he turned it into a million $ within bit over 2 years. Might be the perfect time to also create a small account and trade alongside him. Should be a good learning experience comparing on a daily basis what trades you took vs him, your profits vs his, etc. Also for the doubters, like @dmedin who believe it's not even possible to grow a small account to a million - if Ross can pull it off twice within a 5 years timeframe - then everyone can do it. No doubt about it. All you need is passion for the game, concentration, resilience and the right mindset to pull it off. I'm gonna set-up my demo account today (I'm actually out of cash - wasn't joking earlier) and will focus on US market open for the next couple of weeks. No more indices, commodities, etc. Not sure yet if I'm also gonna give UK market open another try. I guess I got to do something in the morning as well. If I manage to grow the demo account consistently over a period of 4 weeks, then I'm gonna go back to live. Who else is in giving the small account challenge a try? @nit2wynit, @dmedin, @Mercury, @Caseynotes, @TrendFollower, @elle ...
  5. Well, it's all about how much you lose vs your net worth. My very own Dad actually told me the other day, that he tried day- trading back in the days as well and lost £100k on it! But for him that's only a few % of his net-worth, so no big deal. All relative On a side note. Ross trade recap for yesterday went exactly as I predicted with APOP. Check it out: https://youtu.be/C8r31NF6ims At about minute 3.50 he says: "I started with 9000 shares, then added 6000 for the break of 4. I thought it would go right to 4.10 / 4.20." Told you, classic Ross trade. Luckily for him, he managed to get out at 4.03. That was also a level I thought for a split second to close my trade, but then I didn't. That's the difference between a trader with little experience vs Ross with years of experience I guess.
  6. Probably overdone it with the position size. Went as high as margin allowed it. £3 per point. On a 25 point drop in a few seconds that's £75 right there (25% of £300) Question is now, what shall be the plan going forwards? Figure it all out on Demo first and have then another try on live? Got almost £2k of losses now over the past 1.5 years. (Thinking about it this way, I certainly spent more money on even stupider stuff than spread betting )
  7. You're not playing Ross Cameron's game then - almost certain he's trading APOP today as well and might get burned on the same $4 rejection - sounds like a classic Ross move ("here I added to my position for the break of $4 - ah **** it") - let's see later when his market recap comes out I'm gonna head to Demo now and start searching for a job - don't think I can afford this any longer
  8. Stops are almost useless in these momentum trades. APOP got rejected at $4 and flushed down to $3.75 in mere seconds - whopp 25% of your account gone TEUM would've been a good trade though - if we would've known
  9. Mix of ProRealTime and scanner on https://www.trade-ideas.com/ Think US open is too dangerous for me though. APOP just almost blew my account
  10. So, I'm eyeing: APOP - leading gapper TTS - great run yesterday, let's see if continuation NLS - same TEUM - same QEP - 2nd Gapper REZI - potential reversal (down 40% yesterday)
  11. Don't pay, just use the Demo. Works as well. Data is 20min delayed, but that doesn't make a big difference pre-market anyway
  12. You still haven't checked out this one, have you: https://www.trade-ideas.com/ ?
  13. In regards to your trial with gap reversal, would look at historic data. Get the top 10 gappers for the past 100 days or so and then check if they have moved up or down on market open As mentioned, I've done this analysis once on UK market and turned out 70/30 towards gap reversal, not gap and go. Might explain why I was always loosing on gap and go in UK.
  14. You just got me excited to trade market opens again, lol 2 trades on TTS. £28 profit with using only £144 margin. That's 20% return on equity right there. Might focus on market open again - what do you say @nit2wynit
  15. That sounds similar like the strategy I was once trialing, on UK open. I call it Gap reversal. Gap up of more than 2%, you go short at the bell. My statistical data of over 3000 data points suggests a 71% win rate. (Seems close to your experience) The issue I had with this strategy were the spreads. I usually found that the spreads right at the open were so large, that indeed the price went in the right direction, but not enough, so that you take a profit in the end. Example: Open at 388. Statistics forecast a drop down to 381. Unfortunately the opening spread is something like buy 392, sell 384. When the price moves down to 381, the spread is still something like buy 384, sell 378. So your profit is 0 points, even though the price moved 7 points.
  16. The gain to loss ratio would be 1.69. So starting with a £2k account you would make £54k and lose £32k, finishing up £22k (after a year and a quarter approx) That's also an interesting idea and thought about this before. Finding out the average length of the run, then the average length of the pullback, and so forth. Not too sure yet, how to codify and test this though.
  17. So the current model doesn't have a concept of retracements or reversals. The trade will only be exited in one of 3 events: - Target Profit LvL hit - End of day cut-off 21.55 - Hypothetically a stop loss, although backtesting has resulted that any stop loss level would have a negative effect on the overall performance. The chances seems higher that the trend ultimately reverses and then at the end of the day is at a better level than the stop level would've been. Yesterday I trialled working in a model of retracements into the model, but without huge success. Best option I could find for FTSE was, if 15 points in profit, set stop loss at 10 points. The impact of this is: 71% winning trades instead of 62% 1335% gain (over 100,000 5min units) instead of 1025% One thing you can't really work into any trading model is "trader intuitivity". Like you are up 20 points in a trade, but your target is at 25 points. Somewhere else you see a nice trading opportunity, so you rather take the 20 points and enter the next trade, than waiting for the last 5 points til target (if it will ever reach it). So I guess the model just needs to be a guideline rather than a strict set of rules
  18. Anyway, this thread has drifted far off Who's in cracking the Andrew Pitchford trading strategy or any other strategy?
  19. @nit2wynit and myself just playing with small capital right now, because we don't have a winning strategy yet. As soon as I'm having a winning strategy and what I mean by that is trading the strategy in live environment consistently over 3 months with real capital, although small amounts, I'm scaling the equity in my account up drastically.
  20. You've got the wrong view on things again, I'm afraid. All you need is capital to trade. It doesn't need to be your own. Put £20k on a credit card, trade it and make £25k out of it and pay the £20k back within the same month. No credit charges and you just made £5k. Do that 4 times and you have your £20k starting capital If you had a winning strategy, you would find a way to raise that capital quicker than you think. In fact people would start throwing more money at you as you can manage
  21. That's why I always saying don't focus on the £ values - they don't mean anything. If @nit2wynit would've said he earned 11 points or 1% or something, then this would be of much more relevance. Because the £11.18 are just a reflection of how much he puts in, in the first place. But the 11 points instead of £11.18 can also be £111.80 or £1180 or £11,800, depending how big his account size is. Try doing that in a job, where your £ per hour is fixed and not a function of your capital.
  22. With £20k, you could do position sizes on the FTSE of 50. Means £50 per point. If you scoop 5 points of the FTSE every day, you make £250 per day, that's about £5k per month or £60k per year. You're math is correct. I think this is an understatement of what spread betting can do. Don't forget your purchasing power rises during the year as you make profits. From month 2 you can up your position size to 60, meaning you make now £300 per day, that's £6k that month. Month 3 you up size to 75. You make now £375 per day, £7.5k per month. And so on. Your account size reaches £1m in month 19. That largely matches with for example Ross Cameron's performance ($500 to $1m in 24 months, but taking profits out of the account above $100k) Additionally, I think it should be more than doable to scoop more than merely 5 points per day. 10-20 points seems to be a realistic target.
  23. LOL The chance of winning the National Lottery jackpot is 1 in 45,057,474. The chance of winning in spreadbetting is (according to spreadbet providers) 1 in 20 (95% lose). Ok, not everyone makes huge wins. I assume the chance of becoming a spreadbet millionaire is somewhere between 1 in 10,000 to 1 in 100,000. Certainly not in the millions
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