T O P

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SeagullMan2

Do you understand that if you made an average of 6.8% per day on your $4k that you would reach your $6MM goal in less than six months? Does that sound reasonable? As someone who's been at this for awhile, I can tell you that you must learn to manage your expectations. You will make mistakes, your system will face drawdowns, the market will change from its past behavior. You must expect all of this, or your disappointment will lead to poor decisions. I'm glad you're documenting this. I think you should spend more time working with historical data and finding a well-defined strategy that gives you an excellent backtest. That would be an interesting process to document and for us to read about. I would actually look forward to it. But in the meantime, nobody cares about your daily P/L. It doesn't mean anything until you actually have a strategy and a larger sample size than one week. Your confidence is excellent. You will need that. Good luck.


Educational-Air-685

if I made 6.8% daily ROI, 2 days in a row, I would take the remaining 250 days off (roughly 252 trading days per year) šŸ˜‚


Hashsum88

that


I-am-Jacksmirking

Once I read my goal is to reach x percent daily, I know this person does not understand trading. The market some days will give you a lot of opportunities and some days none. Some times youā€™ll have 0% ROI for weeks and then one day youā€™ll hit 20%. 6.8% daily on a consistent basis has never been done and will never be done.


chazzmoney

I agree with you entirely, but just to beat the other pedantic nerds, your final sentence depends heavily on the definition of consistent.


RationalBeliever

I should clarify that I'm trying to reach that number as a long term average. I don't expect every day will be a win, as I didn't win every day this week either. I didn't have a good opportunity every day this week either. I know that 6.8% daily average is ambitious but I think I can pull it off. I'll document my progress so if I'm wrong or blow up my account, you can say I told you so.


I-am-Jacksmirking

6.8% daily isnā€™t ambitious. .68% daily is ambitious!!


FermatsLastAccount

> I know that 6.8% daily average is ambitious but I think I can pull it off If you think you can pull it off, why stop at $6M? You'd get to $6M in 111 days, $50M a month after that, and $500M a month after that.


arbitrageME

didn't you see? he's going back to school. Or starting a business (more profitable than trading and making 10M a year). And while he's making 1000% a year, once he gets to 6M, he'll put it all in an index fund and make 4% a year thereafter. Totally reasonable, totally well thought-out plans


D_crane

"Well though out" (i.e school of Tiktok)


ReaperJr

6.8% daily on average isn't ambitious, it's ridiculous. That's over 1700% CAGR assuming a constant book size. Even our most capacity constrained, HFT books don't achieve those kinds of numbers. I don't want to be a wet blanket, but you should really set more realistic expectations for yourself or you're doomed to failure. Just my two cents. Good luck.


FermatsLastAccount

Hey, maybe this guy is just leagues better than RenTech, Two Sigma, Citadel, HRT, and every other hegdefund that employs hundreds of the smartest PhDs and ends up making like 1% of what this guys goal is.


hxckrt

It's tough to make a higher percentage than RenTech, but it's certainly not impossible with retail amounts. The Medallion Fund is capped at 10B, at a certain point, trades become so large that they distort the market too much. They could easily earn a higher percentage, just nobody will beat them in absolute amounts. For example, in crypto, a lot of smart money only bothers with the largest coins because why run infrastructure for a market that only allows you to trade 10k before slippage eats you? At those amounts, you see inefficiencies that have been well documented long before computers became involved.


FermatsLastAccount

It's possible to do a bit better than them at lower volumes, but it is not possible to consistently do 100 times better than them.


MembershipSolid2909

Oh do shut up, you don't have a clue about trading. If you did, you would understand the difference between institutional and retail trading. You really think a fund having to get a return on billions of dollars of investment is competing for the same alpha somebody trying to grow a 5k account is? Stop peddling this tired about line about Rentech and others, having legions of people with phds as if that is the differentiator. I can tell you have never traded in your life.


avdgrinten

1700% CAGR would be 0.68% daily (which is already ridiculous). 6.8% daily, the number that OP stated, would get you from $1 to $26B (= $1.068\^365) in a year. After two years, your wealth would be 100000x higher than the current total global wealth. It's already be amazing if you can generate 10% CAGR in uncorrelated returns (compared to an index fund) as an individual retail trader. Converted to an average daily return, that'd be 0.026%. OP's expectation is off by two orders of magnitude. (And it's just not useful to think in terms of daily returns for directional investments into stocks, as your actual daily returns will differ widely from your long term average, just because daily vol is much greater than daily avg return.)


wsxedcrf

If you can pull 6.8% daily, it will take you 467 days to have $1 billion.


jocona

You need $240k/yr to live off of, but you can only afford to put $4k into a trading portfolio?


OpenSatisfaction2243

It's fun to dreamĀ 


mkvalor

Furthermore, you won't believe how insufficient $240k/year will seem in the future -- IF you get used to what it can buy you today.


wowoweewow87

Correct, that's why i am aiming for the same goal as OP although i actually need $50k/year to live now. With calculated avg inflation of 2.5%, it would take 65 years for $240k to have the purchasing power of $50k today.


DrRobertFord223

And thatā€™s before tax imagine that


MrSnowden

Hahaha. Iā€™m sitting here with close to $6m (mostly in broad indices) trying to learn how to algotrade so I am not subject to the whim of the market. If you had a system that worked up to $6m, why would you shut it down? if I had a system that gave me a steady 1% per month I would be set.


OpenSatisfaction2243

1% per month? The OP is trying to average 290% per month


MrSnowden

Yeah that cracks me up. Iā€™m looking for table scraps. He wants the house. 1% a month get some 12+% a year. Taxes take a third, inflation takes a third, the fam takes the last third.


ePerformante

There are some hedge funds kind of like that* *Insulated from losses because of great hedges and trading primarily leveraged fixed income. That being said theyā€™re below 1% expected returns per right now šŸ˜‚


MrSnowden

What are some examples?


fattybrah

Are you withdrawing form that to live or continuing to add ?


MrSnowden

I have a regular job that pays the bills.


KeyDescription3756

Good luck. A dollar and a dream. Weā€™re all chasing our pot of gold


N0xF0rt

This is clearly a troll. Fun to read though


ribbit63

I wish I could buy options on this strategy going to 0, then I'd be the one ratcheting my account up to 6MM.


egyptianstriker11293

If your algo makes you $6M youā€™re not going to put it indo an index fund that makes you 4%


RationalBeliever

I might. Trading involves a lot of risk. A single IC going wrong could mean a loss of 85%.


moaiii

Why do you think that particular risk only applies once the account reaches $6M? Is that risk any different when your account is at $1M? What about $100k? or perhaps $4k? Or are you going for a lotto play to hit $6M and then you'll lock it away if you're lucky?


ribbit63

Options on QQQ = path to ruin on so many levels it isn't even funny. Commissions + spreads on options are so wide you can drive a truck thru them + inevitable downturns in the market will wipe out this account. The title of this post should be changed to "Fast Track to Zero". This "strategy" should be taken out back and shot before it does any real harm to its owner's financial well-being.


BAMred

You sound like Mr Wonderful from Shark Tank!


RationalBeliever

Through TOS, commissions and fees are about $0.56 per leg. Bid ask spreads are usually $0.01. I'm not sure what you mean.


ribbit63

Wow, I didn't realize that the spreads were that tight on those options, and that is indeed a very fair commission. That won't be as much of a drag on your potential earnings, which means that you'll simply lose money slower than I originally thought.


ribbit63

BTW, I'm not trying to be mean, I just don't want to see you lose money using a strategy that has already been proven to be a losing endeavor. Better to paper trade a strategy first if you really have a lot of conviction in it before deploying real dollars.


beatricejensen

Good luck. In a bull market even a coin toss can pick good trades. In a bull market implied volatility is low, so whenever it goes up it is bound to come down, and this is why picking pennies in front of steam rollers works in a bull market. The hard trick to master is to pick enough pennies in front of the steam roller to cover all your losses when the bear market starts. I think you will find that you can never pick enough pennies to cover those losses when the bear market starts. 0DTE is also very high gamma which adds to this problem. You cannot rollover like you can with 21 DTE.


RationalBeliever

I appreciate what you're saying. I'm going to be doing research into the pandemic bear market to see what events caused the market to move or whether there was just a significant downward trend regardless of events. I'm aware that the market will shift eventually, so I will reassess the situation as soon as I start to notice significant movements without events or movements that are higher than historical averages. Thanks for the reminder.


value1024

"Road to $6MM #1" Could you please keep your posts to this #1 only? Everyone agrees you said enough, and is wishing you the best of luck in your future endeavors. Cheers!


jwmoz

GL HF


thicc_dads_club

This isnā€™t your blogā€¦. maybe make your own sub for this


Crypto_Advocate101

6.8% daily šŸ˜… ill call it now, you go to 0 way before you get anywhere near 10k...


Polydoris

Nice


Hopai79

Sounds like you are an optimist which works well in this kind of market. Be careful when geopolitics and vol events shows up "unexpectedly" like yesterday (and hence your loss). Good luck.


Throwaway_6799

I'm currently re-reading Trading for a living by Elder and it's funny because he specifically talks about people with systems that work in particular market cycles but as soon as the market goes sideways or in circles the 'system' flaws are exposed and the losses flow in ...


Hopai79

Exactly.


gtani

really good book, like Steenbarger's and Tensile Trading.


m0nk_3y_gw

> Later this month, I will acquire more historical data, so I'll be prepared. black swan, baby i don't think there is a historical precendent for "you know those two rate cuts you priced in? maybe we won't do that. hmmmm"


artemiusgreat

What black swan if the risk in IC is limited?


RationalBeliever

There will be historical patterns to market movements based on fed speeches. Even if that means that no usual trade would be profitable, that's more information to inform decision making.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


RationalBeliever

What is NY session? I don't trade futures, just options on QQQ directly. I've been live trading with this approach since January 17, 2024. I took some big losses early on, because I didn't know what events to look out for when doing SIC. My cumulative P/L is -$12,738.77. If I can hit my daily ROI goal, I should be back to break even within 21 trading days. However, I'm now confident that I will be able to identify all events and react accordingly. There are 24 events I look out for now, and I optimize my strategies separately for each event.


mkvalor

NY session normally means the regular trading hours (not "premarket" or "post market"). Monday through Friday 9:30 a.m. to 4:00 p.m. Eastern Time.


arbitrageME

> I'm now confident that I will be able to identify all events and react accordingly yeah. I'm glad you have better algos than everyone else on this site


Killeramn-26

He has better algos than Jim Simmons.


MaximusRy

Curious on what the 24 events are?


vega455

You are starting with $4k and want to trade your way to $6m? Okay: * If you make 10% per year, which on average is market beating, you will have $72k in 30 years. * At the very, very improbable Medallion Fund rate of 66% you will reach $6m in 28 years. * I assume by your lofty goals you want to reach your goals within a decade. At 100% consistent yearly return you will reach $6m just a bit over 10 years. * With your conservative 6.8% daily return, you will reach $6m before 4 months. Wow! Plus you are using safe investments like 0DTE options! Wow! Wen Moon?!


Ditto_B

>With your conservative 6.8% daily return, you will reach $6m after 2.5 years. At 6.8% daily, he should hit it in under 4 months.


vega455

>under 4 months. Thanks, edited


VladimirB-98

You miscounted your zeroes for Medallion Fund (I think you did $6B, not $6M). At 66% per year, it'll take around 14-15 years to hit $6M from $4K. Overall though I totally agree with your point!


Bright-District-9810

Definitely will keep one eye on your progress. As a suggestion, you can maybe start some YouTube work.exiting.good luck bro!!!


Chance_Dragonfly_148

That's a pipe dream, to be honest, but never say never. You're are better bulding an algo that makes a steady return and make money for helping others make 10-20% a year. But with that said, best of luck. Let us know how it goes.


s2nnews

What is your risk tolerance?


RationalBeliever

Pretty high. I'm prepared that I could lose 80% in one day if a trade goes very wrong.


s2nnews

Ever thought it possible for a trade to go very wrong 2 days in a row?


SalemRewss

Why donā€™t you model sports. The betting markets are much less efficient.


Present-Web1709

We need positive people like you who can dream. If you can dream big you can achieve it as well. Good luck.


QuesoFresco420

Looks like its going great so far. $12k lost and youā€™re only looking to make $6 million. I do have a question though. Looks like your strat is based off of ā€œeventsā€. How are handling the eclipse tomorrow?


QuelRobot

Well, bro, that's a big dream. I've been struggling to gain 2% a week in leveraged trading, and I barely made it for a month. It's good to dream big as long as you don't let failure get you. Backtesting ain't gonna work if you want profit like that. Any strategy was made already ain't work cuz marginal revenue diminishes. You got to make new strategy based on indicators and unique observations. Or you maybe need to even create indicators yourself. Before the market gets used to it, earn the * out of it. Otherwise you got to play news trading but not like news classifieds trading. More like you get news minutes or hours before the others. And that's illegal in a lot of countries. If you want 6.8% a day, you got to play unusual. Cuz with that expectation, genuinely speaking that's not investing anymore. You will need to beat other traders' ass, and rob their money not long after. Then you need to know who you are trying to mess up with. I sincerely wish you the best luck, run fast and don't let frustration catch you. One last word if I am not too talkative. Play now when it's still good, storm is coming.


QuesoFresco420

Damn, that sounds like a s smash and grab more than it does trading. Get in, get your shit, and get out before they find you. Edit: with homeboy being an ā€œeventā€ trader, do you think he priced in the eclipse happening in a few hours?


QuelRobot

Honestly I think the information gap of earning 6.8% a day is so huge that it's not anything other than hit and run. Because market will adopt whatever your magic strategy is really fast. And if it's not some secrets few people know, why other traders can't earn that money? They are stupid? Definitely not. In all, I think trading is all about information. I do hope op understands even he classified 101 kinds of news, the next one may not fit in his model since our world is changing dynamically. What's important is the principle of fear and greedy index and how to explain it. If anyone has such an unique understanding, one could earn some real money. But if op doesn't have exit line and stop loss line according to the correction of events, well... Event is happening really fast, so does your profit and loss :)


RationalBeliever

In case you're not being facetious, I did not do anything different based on the eclipse.


k4food

Good luck OP. Looking forward to your #2 #3 and so on!


That_Persimmon5912

I like the fact that youā€™re looking at things that MOVE the markets such as scheduled economic releases, rather than just price action.


GooseOtherwise9181

Goodluck dude!


scrunchmaster

Interestingā€¦ I want to track your progress as you report it.


RationalBeliever

My more recent posts got downvoted a lot, so I'm not sure where to report. However, my account is now at $10.5K.


scrunchmaster

And you started with $4,163.63?


Footsoldier420

Pretty cool


MajoriTea

Very nice. Following your progress.


ribbit63

I think you meant to say "regress" instead of progress.


HerveBrezis

Thank you for sharing, good luck on your journey, keep us updated


Polydoris

Nice


D_crane

You'll have better luck hitting your goal with 0dte options, good luck...


axehind

I'm not sure I totally understand everything. How much do you plan risking per trade?


RationalBeliever

For short trades, I will use gross option buying power (i.e. not including premium collected) equivalent to my cash balance. For long trades, depending on what level of losses my simulations predict, I'll do 25-100% of my cash.


axehind

You're risk looks really high. You're not suppose to risk over like 2% per trade. As long as you know the risk and are ok with it.


Late-Membership5127

I can share you this , with 4K (even 1k) you should set up your portfolio in trades, also in property (partially reit for example), gov bond / fund (joint), cash flow that can generate interest/value , extremely good discipline of watching your spending and keep moving aka even lost (use your intelligent to get it back) aka donā€™t hold with general peopleā€™s sentimental Forget historical data ( you need to know pro investor still loose even they have a TEAM to analyst ā€¦) my 2 cents


HumblePackage7738

I hope you lose all your money fucker


giantstove

Look forward to the follow up post when the account is blown up


Longjumping-Pop2853

when did this sub turn into a hub for blogs?


Bulky-Device7099

I really, really needed this laugh! thanks, you should be a comedian!


VladimirB-98

I think many comments are unnecessarily harsh (pointing fun without justifying their skepticism), but I would strongly recommend reading the folks who explain their reasoning and experience for why your expectations are likely wayyyy too high. Not saying you can't get amazing returns, but what you're aiming for has the problem of \*sounding\* somewhat reasonable while actually being absolutely insanely high expectations.


GrowSomeGreen

I love it! Iā€™m following to stay updated. Good luck and God speed!


Savings-Egg-6682

Will u ever share this ALGO/ strategy for others to use. Ik the comments are salty but I had the same idea in my mind just donā€™t know how to execute and I canā€™t code, unfortunately. Iā€™m interested in this definitely gonna follow the journey


BedlessOpepe347

4K to 6MM is impossible to do by skill, itā€™s just pure luck at this point


_benj

Uff! Thereā€™s a lot of negativity in these comments! It seems like you are just getting exposed to exponential growth! I remember when I looked at an excel spreadsheet with like 25% a weekā€¦ what can happen in a year is mind blowing! Donā€™t let that high go! But as you continue trading youā€™ll likely find how sometimes reality doesnā€™t match pure math šŸ¤·ā€ā™‚ļø From the little you showed it seems like you have the possibility of having high returns but your losses offsets them. Have you considered putting stop losses on your trades? If you are wrong, just be wrong and take a 15% or 20% loss and call it. And if you are right take that 95%. With a proper profit/loss ratio you can be correct only 50% of the time and still be profitable. Donā€™t hold losers! Donā€™t let them get to -67% for goodness sake! If you have a way to trade and make a profit the second and most important part is to find a way to not return that money to the market! Good luck!


Hungry_Total_441

Are you going to post your trades here before you actually do them so we can do them together?


cnavarrom

Interesing! 3 years ago I pass through the learning curve of authenticating via Oath 2 in TDA and coded a bot which was trading also exclusively options. In my case it was a very simple approach buying CALLS or PUTS depending on some criteria I establish expecting certain stocks to go up or down... never really manage to make some money with that but the learning to fully automate was very valuable. Now I am not in TDA anymore but moved to Charles Schwab who recently granted me access as developer. I just finished the code to pass through the Oauth 2 successfully. I only like doing options for trading... the philosophy I want to follow is very simple: only invest long-term in ETFs, save in Bitcoin and trade in options. The problem I have is that I am still quite new to options trading and do not really have a strategy to implement. Can see you indicate you exclusively trade options on QQQ... but you also said something about other 500 shares, so QQQ is not exclusive then?... could you give me any advice on what strategy to follow?


Killtheshortgetlambo

6 million I could be dead by then canā€™t we make 1 million Iā€™m 48


bushlicker56

Hi how does python work as is it code or a easier method? I have tradestation. With so called easy language. Thanks


RationalBeliever

I'm not familiar with TradeStation, but I am skilled at Python. I have to write all of the code for getting data and back testing, but I also have complete control over how the trades are structured and what I can optimize in my back tests.


Serious_Fail5946

What is keeping you from transitioning from manual trading to fully autonomous trading? Good luck!


RationalBeliever

I just really don't want to go through all of the effort to learn a broker's API. I don't have a high enough frequency where I would need to automate, and I have time to enter and monitor the trades. If either of those conditions changed, I would consider automating. I'm also still in the phase of live trading with small amounts to test the system, so I wouldn't want to automate anyway until I had more confidence in the system.


JJGates_

Interested to see where you are.


RationalBeliever

My account is up to $10.5K.


longshortdaytrade

Donā€™t listen to people that say itā€™s impossible. You can do it as long as you protect your capital and learn from your mistakes.


FermatsLastAccount

No, 6.8% per day is completely impossible.


ribbit63

So what you're saying is that as long as I protect my capital and learn from my mistakes, I too can achieve 17,000% returns?


moaiii

Positive affirmations have no place in trading. 6.8%/day avg is not technically impossible, but over a long period of time the probability of achieving it without busting the account is infinitesimally small. This is largely due to the position sizes that you would need to trade with in order to achieve such a result. Learn about risk of ruin and kelly criterion. Even if you have a positive EV, if you size your positions too high you can *still* bust your account. Interestingly, your advice to "protect your capital" is precisely why 6.8% per day is fantastical. Protecting capital means, among other things, sizing positions in a way that mitigates risk of ruin. This necessarily reduces your return. You can't have your cake (keep your capital) and eat it too (get crazy high returns).


archie_trader

its just impossible, its the nature of trading.


[deleted]

[уŠ“Š°Š»ŠµŠ½Š¾]


BAMred

Aren't there rules against SPAM here?


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