Trading Challenge - 1 (Crude oil - 1.75 L to 1 Cr in 300 trading days)

#1
hi all,

(disclaimer - my trading experience is 1 year and some 4 months in all)


i see a lot of negativity around day trading and decided to test the truth out for myself for once. let us see how it goes.

the starting capital is 1.75 lakhs (nothing fancy about this figure - just that this was the balance in the trading account today morning)

target - 1 CR (again just a random picked number - nothing fancy except that this is like a catchy benchmark)

time period - present to dec 31 2019 (wanted it to be 1 year but decided to add these two and half months as well (1 year at least because that will test my strategy, discipline, attitude and give me a more or less correct picture of how i stand as a trader in the true sense - ended up selecting 300 days approx)

trading commodity - crude oil main (but may venture at times into aluminium, lead and zinc - mini or main lots)

strategy - aggressive scalping, i never hold positions overnight in main lots. with mini lots i may do so although i rarely do that. just keeping the option open.


seems impossible - right. lets make it possible now.
just let the skeptics laugh their hearts out after reading so far first.


ok, now let us get to the specifics of how i intend to go about doing it because the laughter will slowly but surely die down after a while.

first the basics are as follows:
i treat one lot as 35000 inr cost.
(ie eg day 1 i have 1.75 lakh and i use just 5 lots - the rest is margin in case a trade goes wrong)
(as on date - one crude oil main lot is approx some 20000 inr approx in actual)
- so i am quite sensible here - not going overboard with the capital usage

next i look for just 3 trades a day
( on an average i take 10 to 15 scalps a day so 3 is really smooth sailing and gives me a lot of leeway in selecting good trades)

target profit in points - 4 points per trade
(now that is just below what i usually target as a scalper - i generally look for 6 points per trade but decided to chop down profits to make the challenge easier on myself)

so the summary is (eg day one) - 5 lots X 4 points profit per trade X 3 trades in the day = seems reasonable to me at least = 60 gross = 40 net points approx
only on the 6th day onward do we move to 6 lots and so on. any scalper would agree that 4 points target and 3 trades is not dreaming but possible.

now let us address slippage - i do not know this for a fact but yes, 100 lots seems reasonable and quite trade-able. anyway when i get to that point i may have to alter the scalping strategy a bit if i sense problems and adapt it to the lot size accordingly. anyways, it is not like i will trade a 100 lots tomorrow. its a gradual curve and i will have enough time to work on the same so i do not see much of a problem. for now a 100 lots appear on the 145th day or so and that is a lot of time to work on that aspect. for now, i have capped maximum trading lots at 100 and so do not see slippage as any hindrance.

now the whole challenge hinges on just one thing - controlling the losses. that is the only area of concern. as long as i can plug the hole it is possible.

lastly, why do i put it up on the forum. i like pressure maybe. i like being out in the open exposed and willing to chance myself. to show myself that nothing is impossible and that i do not need to fill up 10 years of screen time before i dream big. as long as i approach the dream sensibly i do not mind sharing the journey and that is what i intend to do.

i do not know if i will make it to the top - i cannot predict the future. i only believe i will because i know i can. the ride will be treacherous and fraught with tears and a lot of pain, lol. but then - it will be a hell of a ride that i will cherish forever whatever the outcome. (also i will be withdrawing money at times from the account for my personal needs).

so there i go - sailing the treacherous green seas in search of an unknown green land - myth or reality - i will know at the end of the journey if i do not perish in the quest.

good trading all...

edit - was supposed to post and start yesterday but got lazy and am posting it a day late. anyway, nothing changes much except for the starting capital i guess.
 
#3
day 001 - (monday)

went well. was not too aggressive - ended the day with a net profit of 14111 or 8.06 % net, so capital today on start was 189111. (5 scalps in all)

today ie day 002 - i have my day target profit already booked and also do feel kind of lazy so i may or may not trade further.
 
#8
ok.. shutting down terminal for the day, kind of tired today.

day 002 - 2 scalps with 5 lots and 3 scalps with 1 lot. 7600 gross. so i guess - not a bad day - considering that the evening session is the time i usually begin my trading. all my scalps were 6 points profit per trade approx

net profit 6200 ie 3.47 % approx

(i use 1 lot either when i have not yet reached my day target or when i am not too sure of the scalp or when markets too volatile)
 

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