Searching for Proven Strategy

I have been working for the last two years trying to develop a trading system that will produce a monthly net profit of around US $ 10,000 rather straight forward (without many discretionary entries) starting with three or less contracts in the E-mini S&P (or any other market including currency futures) without success.

I am looking for someone that has a proven and back tested system with these characteristics and is willing to hear about an interesting business proposal

aslv2000

Read Charter Joe's Mini IB thread

Thank you ST. I already looked into the tread and looks promising.

thx staylor....


If you don't mind FX take a look at the GBPUSD 7-9am breakout thread trade. The entry is automatic and the exit is discretionary but have been taking 20pip stops and 20pip profit at the min. even though it didn't do to hot today its been good for +100pips a week for the last couple months I have been trading it. For the kind of $ you were looking at you would have to trade 200k-400k lots. But I would work my way up there.
Problem is with automated systems is the not thinking part. I think trading needs structure but it also needs a human brain element. If a system is constantly doing poorly its only a matter if time before it reverts to mean or even worse account blown. On the flip side is methods go throw times of famine and plenty just like everything else.
If your going to be a systems trader you need systems for trending markets and for non-trending markets working at the same time. I think basket trading is the way to go. What works for me is I have accounts for scalping, swing trading, options, basket of stocks and baskets of currencies. If I have 5 trades going on I am a lot less likely to miss it on all 5 trades, problem is sometimes I force trades that aren't there.


The best way to trade IMHO is what I call basket trading buy strength and sell weak... Sector stocks, FX what ever intra-day, or longer term. Here is the site I use...

http://finviz.com/forex_performance.ashx?v=21&o=-perfdaypct


I pair what ever is advancing most against what is losing the most against the USD. On a weekly basis and daily. If there were a way to automate entries filtered through some sort of EMA pullbacks or Sing hi/low...it would be a very profitable 24hour money machine.

I don't understand how a system can produce a static amount
for example $10,000 per month.

Three contracts is ~$4,000 * 3 =$12,000 margin + $3,000 for initial cash surplus =$15,000.

10K is 200 points, about 50 points/week. (16.67pts per contract-c on 3contracts.)
At week 2 you have $20,000 so you are now 4c with $4,000 surplus
At week 4 you have $26,667 so you are now 5c with $6,667 surplus
etc.

If you leave the winnings in you would have an enormous amount after 52 weeks (like $2.6M), would you not?

Blue, IF you make 10,000 a month whether you take it out or leave it in it still comes out to be 120,000 a year. Mabey your talking about compounding the money

Originally posted by rainman99

Blue, IF you make 10,000 a month whether you take it out or leave it in it still comes out to be 120,000 a year. Mabey your talking about compounding the money

Hi Rainman,

Thanks for the math tip!

{I think my example of compounding Mabey implies that was my question.

So you feel that he is looking for
$10,000 per month for a $16,875 investment or 59.26% per month
or 711% per year (or 26623% annualized)?

It would be hard to imagine that anyone who has been "working for the last two years" needs the system to past backtesting, would then be silly enough to practice such poor money management as to not buy additional contacts with his (or rather the other persons) system.

No doubt even the Madoff would like those returns!!
http://online.wsj.com/article/SB124604151653862301.html

Originally posted by rainman99

Blue, IF you make 10,000 a month whether you take it out or leave it in it still comes out to be 120,000 a year. Mabey your talking about compounding the money

The Day Trader Millionaire Calculator uses compounding to demonstrate how "amazingly unrealistic returns" are calculated.

Hi Blue and all others,

I apologize for the delay posting but I was traveling and had little time to check on the multiple forums in which I have posted similar posts.
Since I am pretty sure that we have a wonderful business model to take advantage of and that offers a win - win opportunity to all those involved in this business I am trying to let the greatest number possible of people know about it.
I also apologize if I did not make myself clear in my first post. I am not looking for a system that will produce US $ 10,000 a month with only one contract starting the first month. I am looking for a system that may END UP producing US $ 10,000 a month (to be honest with you between US $ 4,000 and US $ 10,000 would be ok) after we start with a conservative approach using between 1 and 3 contracts to begin with. Once we gain confidence on the system and the account is in the green side we may start adding contracts as needed (hopefully not more than 5).
The bottom line is that we have a good idea that may be very profitable for all those involved. As everything in life, you take it if you like it or you leave it if you don`t.
Once again I thank all of you who have manifested an interest on this idea.
Kind regards,
aslv2000

Blue, No problem let me know if I can help again Anyway, yes compounding the money is not realistic but making 17 handles a week(although very tough) is realistic.

Originally posted by rainman99

Blue, No problem let me know if I can help again

Anyway, yes compounding the money is not realistic but making 17 handles a week(although very tough) is realistic.

Glad to know you're making 17 a week!!

CJ eat your heart out!

Feed your system to a money bags, let them take care of the money mgmt (compouding) and don't forget to buy me an island in Tahiti for the advice!!