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Micro account vs Funded account (combine)


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Micro account vs Funded account (combine)

  #41 (permalink)
 luv2trade 
Charlotte NC/USA
 
Experience: Advanced
Platform: Sierra chart, ninja trader, metatrader
Trading: Futures/forex
Posts: 5 since Jun 2012
Thanks Given: 1
Thanks Received: 13

I have done many combines with Topstep Trader and could never seem to meet the targets. Some times, I would experience the same thing you are saying - when a full contract trade would go against me, I'd exit, even though the "chart reason" that I got in didn't actually fail, only to find the trade would then turn around and do exactly as I'd expected initially. Other times, I would blow out a combine because I'd hit the "I don't care" attitude because deep down I still knew it wasn't real money. When the micro's came out, I stopped doing combines, and instead switched to trading a live account using the micros. I have skin in the game, but I can give the trade more room to breath and work out as my account was relatively small. Trading the micros became a game changer for me and I became a profitable trader.
So, based on my personal experience, I feel trading the micros is better than continueing to spend money trying to get a funded account. Of course, you have to do what you feel fits your needs most.
Hope this is helpful.

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  #42 (permalink)
arielalejandro
Córdoba
 
Posts: 27 since Apr 2020
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Yeah I can use that scheme using 1/10 the values for micros ($16 per trade). Doing that I think that will help with the psychological aspect of the trading and also will enforce me to be super selective about the trades I'm taking.
dbouzas View Post
If your stats are saying 40% or more of the times you have winning trades than you can go with a reward to risk ratio of 1.5:1. Place just 3 trades a day and not risk more than $160 per trade, with a daily max loss of about $450. It's just an example with e-mini's NOT micros. But if your winning trade % is above 40% you should risk manage accordingly to where the probabilities are in your favor. Cut your losses quick knowing that eventually your gonna get your winning trade and profit. If you place 3 consecutive losing trades, your not trading your plan or your plan is not working for the current market environment. Get used to or focus on preserving capital and not so much on making money. If you keep your money and risk manage it well, your eventually going to make money.

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  #43 (permalink)
arielalejandro
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Posts: 27 since Apr 2020
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Hi Luv, thanks a lot for sharing your experience. You described exactly my mindset on the combine! Hehe.
Now I know that I'm not prepared or want to trade E-minis. I feel the micros is the way to go at least in this early stage. Time will tell.
luv2trade View Post
I have done many combines with Topstep Trader and could never seem to meet the targets. Some times, I would experience the same thing you are saying - when a full contract trade would go against me, I'd exit, even though the "chart reason" that I got in didn't actually fail, only to find the trade would then turn around and do exactly as I'd expected initially. Other times, I would blow out a combine because I'd hit the "I don't care" attitude because deep down I still knew it wasn't real money. When the micro's came out, I stopped doing combines, and instead switched to trading a live account using the micros. I have skin in the game, but I can give the trade more room to breath and work out as my account was relatively small. Trading the micros became a game changer for me and I became a profitable trader.
So, based on my personal experience, I feel trading the micros is better than continueing to spend money trying to get a funded account. Of course, you have to do what you feel fits your needs most.
Hope this is helpful.

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  #44 (permalink)
 omttrdr 
London and UK
 
Experience: Intermediate
Platform: Sierra Chart, MT4
Broker: Infinity
Trading: Forex, NQ, CL, FDAX
Posts: 5 since Apr 2011
Thanks Given: 6
Thanks Received: 6

Like everyone has said, Micros are best and there is no substitute to trading Live. Stay disciplined, keep reminding yourself what your trade plan is and stay away from trading too many contracts. At this point, you are not trading for wealth, but to build consistency and make affordable mistakes. The combine is only helpful after you have become very consistent, mastered your psychology and you want to scale up.
Remember the oft-stated fact 90% of traders fail (like with any start-up business).
Best of Luck to you.

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  #45 (permalink)
 n5rinivas 
Frisco
 
Experience: Beginner
Platform: Sierra Chart,NinjaTrader
Trading: Emini ES
Posts: 3 since Mar 2017
Thanks Given: 7
Thanks Received: 1

If you think you're hitting the loss too frequently, then I would trade the 5 micro ES contracts which reduces the value of a point to $25. I felt exactly the same way you did. I didn't have patience to trade with 1 or 2 micro ES contracts.

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  #46 (permalink)
arielalejandro
Córdoba
 
Posts: 27 since Apr 2020
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n5rinivas View Post
If you think you're hitting the loss too frequently, then I would trade the 5 micro ES contracts which reduces the value of a point to $25. I felt exactly the same way you did. I didn't have patience to trade with 1 or 2 micro ES contracts.

Yeah, the problem of trading 5 or more micros and still having constant looses are that on top of that, the commissions sums up a lot. So at least at first I´ll start with 1 or 2 micros. Right now I don´t want to make big money but at least want to stay alive for another trading day. The only time where I go with 4 micros and works pretty well for me is when the chart goes parabollic, I wait for the pullback or rebound (depending long or short) and I can grab 4/5 ticks. From statistics I have 60% of success doing that.

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  #47 (permalink)
 n5rinivas 
Frisco
 
Experience: Beginner
Platform: Sierra Chart,NinjaTrader
Trading: Emini ES
Posts: 3 since Mar 2017
Thanks Given: 7
Thanks Received: 1


arielalejandro View Post
Yeah, the problem of trading 5 or more micros and still having constant looses are that on top of that, the commissions sums up a lot. So at least at first I´ll start with 1 or 2 micros. Right now I don´t want to make big money but at least want to stay alive for another trading day. The only time where I go with 4 micros and works pretty well for me is when the chart goes parabollic, I wait for the pullback or rebound (depending long or short) and I can grab 4/5 ticks. From statistics I have 60% of success doing that.

I understand the commission with 5 micro accounts will go higher than one ES contract. What I have been practicing is to stay in the game everyday. I have learnt that everyday we see plenty of opportunities and we only need one or two good trades. Try to put a target for every day like 5 points on ES . It can be with micro or mini. If you consistently achieve this over a period of 2 months, you can jump one contract.

Start with 2 micro ES , trade for 2 months until it becomes a second habit . Close for the day if you hit 5 ES points . The fear of loss can only be reduced with smaller contracts.

Good luck !

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  #48 (permalink)
cashman
LA CA/USA
 
Posts: 2 since Jul 2020
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bobwest View Post
Use several times the minimum margin. Always do this when trading futures, no matter the contract, and especially if you are using one of the brokers that emphasize small margins.

They know that "you only have to deposit x amount to trade" is a draw to bring in traders who don't have much, but it's not that good an idea for the traders, because it leaves them too thinly funded and too vulnerable to blowing up the account. If you can't manage enough margin, then either reduce your number of contracts or save up some more.

How much is "several times the minimum?" Well, decide what will let you be totally unconcerned about the whole question, and then use more than that.

When you have more experience, you can look at the question again, but start out being very conservative.

By the way, it is also a good idea to recognize in advance that blowing an account may happen no matter what you do, which is a common learning experience. This is not negative thinking, it's realism. And not the end of the world, just a pause. Losses are feedback from reality that something is off, which is good to know.

Another idea is to start a trade journal here, with as objective a self-review of your trading as you can manage. Look at a few journals that are currently active and see if the idea appeals to you. It may help, or, of course, it may not. But many people have benefited from doing it. You will get feedback from others if you want it, and it will be constructive.

Good luck.

Bob.


Hi Bob, hope you are well! I took note of your Journal idea in regards to your above quote. I am new here and glad I read you mentioned the Journals. In your opinion, should I search by views to find the best strategies available? I definitely want a 1:3 R/R minimum strategy, but there seems to be so many journals, and seeing which is the best strategies for a daytrader in the morning hours. Looking to trade 1 /ES contract with a profit target anywhere for 3 to 10 points per day.

Any help will be greatly appreciated, and I look forward to hearing from you.

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  #49 (permalink)
 
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 forestcall 
Tokushima, Japan
 
Experience: Beginner
Platform: Tradovate + Tradingview
Trading: Futures + Stocks
Posts: 57 since Jun 2020
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What is your balance? If you used 5-10 micro contracts and your balance is big enough you can ride out the bearish reversal until it reverses back to bullish and at worst you can profit 1.5+ ticks if your worried it won’t get to your tick goal (volume is now low). You could use this strategy for 2 micro contracts with less risk and more leverage.


arielalejandro View Post
Yeah, the problem of trading 5 or more micros and still having constant looses are that on top of that, the commissions sums up a lot. So at least at first I´ll start with 1 or 2 micros. Right now I don´t want to make big money but at least want to stay alive for another trading day. The only time where I go with 4 micros and works pretty well for me is when the chart goes parabollic, I wait for the pullback or rebound (depending long or short) and I can grab 4/5 ticks. From statistics I have 60% of success doing that.


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  #50 (permalink)
arielalejandro
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Posts: 27 since Apr 2020
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Actually I don't want to use that much of contracts yet. I'm realistic and I know that I won't have a 10k account so I prefer to go with 2 micros at most so I can have either more room to wait the price action develops to direction of my idea or just to take more losses and still be alive. Of course too many looses in a row will stop me and put me back on the sim and thinking what was wrong.
forestcall View Post
What is your balance? If you used 5-10 micro contracts and your balance is big enough you can ride out the bearish reversal until it reverses back to bullish and at worst you can profit 1.5+ ticks if your worried it won’t get to your tick goal (volume is now low). You could use this strategy for 2 micro contracts with less risk and more leverage.

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