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Futures Experience: Intermediate
Favorite Futures: ES, ZN, ZC, ZF
Posts: 20 since Oct 2011
Thanks: 9 given,
If you can't make 0.1% a day (averaged) you probably should not be trading in the first place. (unless you are doing that with a few hundred million).
For a lot of arb you might need more than 5M to get the daily dollar return you are looking for. I would not recommend arb for you. You probably do not have the capital, leverage, or computer skills necessary to do it effectively. I mean that in the least offensive way possible.
To be clear you are asking for a "zero risk" return of 24% annually with arb and ~5M capital. That is insane. You can do that with arb but you need to be extremely leveraged (or capitalized for the flat dollar amount) and have some damn good coding ability. You also need collocation at all the exchanges you would arb at. You need to do much more homework...
I didnt read all the answers related to your question, but from my point of view the simple answer is:
sure you can if you have a good setup.
There shouldnt be an important difference between making money by trading your own account with 50k or a 5M from my point of view (maybe you will get problems to get filled all your orders when entering the market with a lot of them ) .....
Hey Arbman1, a good place to start is with the post by Jeff Castille titled "All you need" posted on August 16, 2009. It is one of the few trading systems I have seen that has low risk and good potential. You really don't need to leverage that much money. You should be able to accomplish your goal with as little as 50k to 100k. The logistics of tracking that much money trading on a daily basis would be a nightmare. You would have to be in several dozen or more trades at the same time. You will need both a short term day trading plan and leverage the balance in a more long term or swing trading plan. Never trust a trading system without having the creator of the system post actual reults of their trades. If its a daytrading plan, they should be able, and proud, to show you the results of the last 5 days of trading. There are too many posers that will tell you in theory how to trade or paper trade and it won't live trade the same way. Indicators are fine, but understand that most are lagging indicators and will give you a buy or sell that happened on data from 2 or 3 bars back. Start on the post I mentioned above and develop a system that works for you. All you need to make is about 50 cents a day to achieve your goal with 50k. Take a little at a time 5 cents, 10 cents. at the end of the day you will be there.
I would strongly advise not to trade at all. Your question sounds like you have no idea about trading and you will most likely loose most of your money. Trading is a tough game and the most complicated thing I've done in my life.
So, if futures.io (formerly BMT) community answers YES to your question, you will trade and if NO, you won't? It really does sound like that.
By the way, 5k per day is more than possible. I trade with 100% risk per 168 ticks (168 ticks and I am wiped out). With your account I'd be making Jesus knows how much.
In the end, all that matters is if you can make money at all. Risk can be adjusted with lot size. If you can't make money in markets, then even low risk won't help you (5k per day on 5m account is low risk trading)
Be very careful about what you do or the market will take your money.
Last edited by ReaM; November 16th, 2011 at 05:19 PM.
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