successful paper trading

I'm paper trading the ES. Successfully! I've came up with a strategy that I've been using since june ( since I lost all my money in march). Since June I only have 8 losers and 7 days where I wouldn't have attempted to trade. I have read some of the comments about people who show results from a simulated account. well, I have no choice. When I re-fund my account you will get to see me trade through my account. With real money. Today I was over confident and didn't wait for my signal. But I knew what was about to happen so I reversed my position at 1151.00 and ended up breaking even for the day. I'll let you guys know in advance that I will probably miss a couple of days sometime soon due to me switching my service to AT&T.

I almost forgot. My daily goal is to make 5 points. That is also my limit of loss. I usually don't get back in the market when I lose 5 points but today my ego was involved. I knew I was going to be posting the results in this room today Good Hunting!

Hey, Inside Trader. I have a question or two if you don't mind? What is your system, or set of rules for entry and exit? While it would be interesting to see your results as they unfold, if we have no idea what you are doing or why, it is of limited use to us all.

Also, I was just curious if you were associated with 'rookie'. I ask because your chart is so similar to the one he posted in another thread it would be an amazing coincidence that two people would set up their charts so much alike.

Most paper traders I have met are remarkably successful, often producing outstanding results and metrics... but when they switch to a live account they find it difficult to replicate those results. I have suggested in the past to cut paper trading results by 80% when making the initial transition from paper to live trading, which in hindsight may have been too generous on my part.... this will be a good test of my "reality factor" theory of paper trading... please carry on ...

One of the things I mention in my article on sim trading (http://www.kanetrading.com/free_art/simulation.html) is how sim trading really becomes inaccurate as it approaches 'scalping' or very small targets, or very short-term holds. I think this is mainly just the limitation in the trade engine and its ability to replicate what an actual fill would be. I have seen some engines that fill any limit order immediately, when in reality you'd have been left behind in the queue, as we all know. One way to improve that a bit is to use market orders. I think sim can be somewhat accurate, as I outlined in the article, when using it for intraday swing trading testing, since a few ticks in and out is small compared to 5-7 point moves one may be targeting, whereas if one is shooting for two ticks of profit and the accuracy is plus or minus a few ticks, the results are noise.

The other issue, again as mentioned in the article (I keep repeating that only because I covered a lot of this there, and don't want to repeat in detail what can just be read there), is the psychological factor. Hence, as PT and I follow along on this, it would be interesting to try to discern what part of the results are due to differences between the simulation engine and real fills, and what part is psychological, and if there are any other factors that create a difference. Hopefully this will become a fun and educational topic.

IT,

I don't think any trader ought to trade the ES that is not making money consistently or has a jumbo account. There are several other markets I would suggest. If you had enough money to meet the margin requirements to day trade the SPY with 25-100 shares would be better than paper trading. You should also look at YG (mini-gold) $3.333 a point, which means you'll be in the game much more longer, only draw down is the commissions are the same making it hard to make a profit.. Or you could open a Forex account and trade with as little as $25 bucks and is far better than paper trading and if you can't make pennies and dimes you can't make $100's and $1,000.

Rookie is dead InsideTrader is my alterego My ego again. I don't place limit orders. I place market orders. And my engine moves as fast as it were moving when I was losing my money. Nothing has changed. I will let the forum know my strategy soon enough. I want to be able to produce some good results before I put my foot in my mouth. The only way to take your emotions out is by placing your order in the ATM. Like today,getting back in was dumb, but I was very confident about where the market was going. Good hunting!

Ah, so my chart observation was correct. Keen eye on my part. Okay, looking forward to your presentations in here.

CharterJoe,

That's interesting. Only $25 bucks huh? I'm going to contact my brokerage and see if I can trade the Forex. I'm going to stick with the ES, but if I can trade the forex with only $25, I can build up my account to start trading the ES. The ES works for me. I'm going to look into that though because I can fund my account with around $500 immediately. Thanks for the heads up CharterJoe. Good Hunting!

I hope you guys didn't fall for that head fake this morning from 1054.00 to 1061.75 . I was almost to my goal before that happened. I knew it was only temporary though. Here's todays results. Have a good weekend!. Good Hunting!

Hi Inside,

Good luck on your new system. It sounds great so far.
Testing your system on simulated trading is a good idea to build confidence in it.

Did you test your prior strategy (before losing your bankroll)
on simulated "Paper" trading as you are doing now?

Thanks.

We'll forgive you MM..we all make mistakes...and besides I once was forced to see Michael Bolton..I was dating this girl who got tickets and wanted me to go......it was one of those really blazing hot humid August nights and an outdoor concert .....he did this thing where he disappeared onstage and then popped up out in the audience...well anyway he popped up right next to me and I just couldn't take it anymore...It's like that pushed me over the edge and I snapped.....we left...the rest of night didn't go very well....

Cheap Trick..Love those guys...seen em a few times...warmed up Robert Plant once as did SRV......"Tonight it's you" ..great tune.....Do u remember "Up the creek"...it's probably on Youtube..You've had a chance to hang out with Rocks royalty...I'm jealous