Making £8k a month on the FTSE

Hi

Im new to this forum T2W but read with great interest the different threads. I have been in trading a while and have developed a very simple system thats producing on average 400 points a month but I have had 1000 point months. It often produces much more than this but I believe its quite good. How does everyone else do on trading. I do have some loosing days but they are few and far between. It has made me very well off but the system is really easy for beginners. I dont come from a trading background but enjoy it now immensly. I trade on the FTSE but this system seems to work on many of the indices and commodities i have tried.
Regards

mrptraderman

where do i sign up?

Hi

That was quick. I bow to a veteran. You can't sign up for anything as i don't have anything to sign up to. I have been developing this for about 6 months and it really started going in November properly. I am now doing it full time. Its hard to believe but i made 212 points monday and -9 tuesday, today I haven't totalled it up yet but its over 100 points. I have written all the trades down this week so I keep a proper log on an excel spread sheet from now on. I might have just been lucky so far.

Points are irrelevant. You can be point positive and still have a losing system. More details are needed.

Are you trading this system for real or on paper? Does it use stops? It's all very well having a system that returns fantastic profits - but you need to see if it's actually tradable. e.g. if your position goes 300 points negative before a profit is realised then you'll need 500 points of margin at least. What if that trade is stopped out and loses a large proportion of the account...

drawdowns - what's the largest loser? What is the largest unrealised loss on the system - e.g. does it go negative 500 points before you cash in your 100 point winner. What's the margin requirement - to satisfy these do you have to scale down your system. Have you taken account of rollover charges?

£8K a month - on what capital base?

Hi MRP TRADERMAN AND WECOME TO T2W

Please tell us more i for one am all ears sounds good to me i am in a bit of a losing strike for the last 10 days or so am trading the s&p 500 (spreadbetter).

doberman said:

Hi MRP TRADERMAN AND WECOME TO T2W

Please tell us more i for one am all ears sounds good to me i am in a bit of a losing strike for the last 10 days or so am trading the s&p 500 (spreadbetter).

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After 10 years your still going? Expensive hobby?

EDIT: Sorry, I didn’t read your post properly, my bad!!!

Rossini said:

After 10 years your still going? Expensive hobby?

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I will have been trading one year 4th of this year have just about got to break even point.

i have a license to print money here in the UK

for each £, send 90 pence plus an SAE to...

Hi All

Will try and answer each of the points on one reply. Im not trading vocabulary perfect so please bear with me. Let me correct something quickly i got the numbers the wrong way around for mon and tue it should have read mon -9 tue +212.
This system i use takes small bit size chunk trades many times a day There are stops and they are never more than 15 points away. The gains are between 10 and 50 points at any win trade. I now have a bit of data since monday so here goes.
Monday 33 trades showed their head from 8am when i started to 5pm when i finished, 14 wins, 14 losses and 5 no trades minus 9 points. If i had traded up till 10am only 2 hrs i would have won 30 points as the markets got very chopy then until about 3.30 when i would normally not try and trade but i want to do a full day to see how it does.
Tuesday 20 trades showed their heads won 14 lost 3 and 3 no trades(didn't hit my rules) plus 212 points.
Wed still doing sums but made good money. I started with £200 bank and it doubles approx every 2 weeks. I am up to £10 a point but you would need £2k bank this would give me going on my conservative estimates £4k a month. At £20 a point for the experienced traders that would be £8k easily as my 400 points a month i normally beat easily. Hope this helps. So no big money i started with £1 a point and £200 bank and maximum stop loss of 15 of points. I use a combination of signals using averages, directional strength and a set of rules i have developed. If you like i will keep you posted now im doing it properly and keeping records to see if this is a real goer.

Just noticed i had not answerd some points fully. I am not paper trading. The points are the total for the day including all plus and minuses. So plus 212 means 212 times £10 ie £2120 pure profit but i must admit its the first time i had a day this big. But as i said i go for 20 points a day.

Very interesting please let me know how you get on over the week and may be you will give more info cause it sound to me your on to something.

Wednesday results are 14 wins, 5 loose, and 1 no trade. Total points profit for day is 104 points. All trades documented. Another remarkable day. ftse did move a lot though with only 2 real quiet spells but one trade took me through one of these quiet spells as the FTSE didnt vary more than 15 points either way so the stops or profit levels were not hit to close the trade.

"Good going"
keep me up with the up dates,
I will be keeping my eye on the ftse .

Far too risky for me. 7% risked per trade..........

If you find a spread better who takes stakes of 50p or less on the FTSE then great as this would reduce it to 3.5% for a £200 bank. Anyway lets prove it consistently works first to see if we have a winner or not. Thanks for the comment as it makes me think and i will look to see if a spread betting company does 50p stakes or not.

If you have hardly any losing days and have been doing this for a while - why not put in more than £200?

In fact - if you are making 400-1000 points a month profit making £8000 a month- where's it gone ? Why the need for a 50p broker ?

mrptraderman said:

If you find a spread better who takes stakes of 50p or less on the FTSE then great as this would reduce it to 3.5% for a £200 bank. Anyway lets prove it consistently works first to see if we have a winner or not. Thanks for the comment as it makes me think and i will look to see if a spread betting company does 50p stakes or not.

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oanda will give you the sub-£1 a pip option.

you seem to have some type of scalping system, judging by the number of trades you make.
the overall risk/reward seems 1:1.

since your numbers are better than mine for the FTSE, I am interested in finding out more.

good luck with this.

Hi pedro01
I was answering tenapenny point where he said 7% was too high. I use a 7% risk factor when i started i.e £200 bank and £1 a point with 15 point stop loss. I was trying to say that if someone was in that situation just starting and 7% was too great then find a spread better that did smaller stakes. I dont need to do this as i have a very big bank now. hope this explains

Hi,
Ive been trying to trade the snp mainly, Looking to get into trading the FTSE, any pointers mrptraderman?

Thanks

Hi trendie
thanks for your comments yes the best way to describe it is smash and grab. often trades over in minutes. The ratio is not too far off 1:1. I believe it is best called scalping but i use a trailing element to maximise part of the trade if it goes a greater distance than the scalp. For instance i took an extra 40 points on tuesday by doing this