Futures Trader Millionaire
- 20-Jul-2008 at 10:51 AM
- Rep: 70
- Posts: 16
I wasn't sure about the 5th parameter on your list: When you say "Average points profit per trade", do you mean total profits per trade (so in your example 1.25 points all together for each of the 2 trades per day), or do you mean "Average points profit per trade PER CONTRACT?" so you example would be twice as much for 2 contracts traded. Because the way it reads in your example, I can't come up with a million dollars in 215 days. Thank you.
The Average points profit per trade is per contract.
So the default values in the calculator state that a trader trades twice per (trading) day and that on each trade, all the contracts traded each make an average of 1.25 points.
In the simplest example, the first day the trader trades 2 contracts twice during the day and takes both contracts off at a 1.25 point profit. So the gross profit on the first day is:
Number of trades * Number of Contracts * Points Profit * Value of 1 point
2 * 2 * 1.25 * $50 = $250
The net profit reduces this value to $230 as a result of the $20 commission for the 2 trades of 2 contracts each.
The profit is $230 each day for the first 22 days until the capital passes the $15, 000 mark and then the number of contracts traded increases to 3 and the profit per day jumps to $345.
Let me know if that helps...
- 20-Jul-2008 at 2:25 PM
- Rep: 120
- Posts: 189
So day trading the calculation works with the assumption, to trade the maximum contracts your capital allows, yes?
inventor: Correct. It demonstrates the equivalent of interest rate compounding in a bank account.
It assumes that you maintain the margin ratio that you specify in the calculator which can be imposed by your broker or you can specify a higher margin requirement.
- 20-Jul-2008 at 5:24 PM
- Rep: 0
- Posts: 21
Hello Day Trader,
Thanks for the Millionaire Calculator.
I think the answer to this question is a true measure of the success of any individual trader or system.
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Societe General Lose $7Billion On Futures, How Come Nobody Spotted This Rogue Trader Losing His "Barings"
He has been dismissed ( in his obvious absence), should he be made to pay it back ?
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