On the Russell eMini, we jumped out of the gate like a RACE HORSE, picking up a fast +10.3 points on the Russell eMini using the SST. Within 20 minutes we were off to enjoy the rest of our day. At $100 per point, we were able to grab over $1000.
The session continued to be amazing and anyone trading a more vigorous quitting strategy would have been very happy today. We’re content with our 2 wins and positive ‘power of quitting’ approach however, which keeps us moving our accounts forward while taking what the market wants to give us session after session.
We broke out to new equity highs today and have been able to post +260.8 net points!
Forex traders should pay attention because while these are real live futures trades, what we’re finding is that our forex charts are even producing higher returns. Stocks too! And, as I have stated earlier, stocks and forex give us more flexibility with one of our key 7 summits of trading, scaling in and out at strategic levels. Hard to do with Futures unless you have a 6 figure trade account, but with stocks and forex, you can do it with much less and grow your account to 6 figures and beyond, with a well thought out tradeplan.
Finally, I wanted to show you what the power of proper money management would have had on our live Russell trades, as an example. I took the same exact trades that I called live in the trade room and applied a simple fixed fractional money management plan to them. I put a 10 contract cap (per position) and assumed a starting account size of $20,000. I then applied a 2% risk per trade to the average losing trade, $163. I also put on a $10.50 per position cost (commission and slippage). Now, we know that we’ve been able rack up $26,000 in gross profits with an no money management applied, based on the accumulated points to date. How much do you think we would have made using this simple money management approach over the exact same live trades? You’ll need to click on the chart below to see the NET after cost results. I’ll give you a hint. We had to add another digit. We capped out at 10 contracts less than 2/3rds into our trading. In other words, using the formula briefly described above, we built our position size up to 10 contracts by around our 325th trade, give or take (525 trades in total). That means, every trade after that was trading at the maximum allowed 10 contracts per position. That means that as the equity kept growing, the risk per trade vs. our overall trade capital, from a percentage basis, became less and less. In other words, our risk on each trade stayed the same while our account balance kept growing and growing. That’s the power of this idea and we think you’re eyes will pop out when you see the results below.
Click on chart to see same live trades with both a single contract approach per position and a fixed fractional money management approach per position. The blue line and numbers on the left are single contract results. The green line and numbers on the right are the managed contract results. Hey, we teach this stuff! You could be doing this!! These were all called live in our traderoom.