Sunday, December 14, 2014

Challenge update: Phase 5 Complete

Hi traders!

We've finally reached the 5th target in our challenge!

The US$ 50,000 target has been met and we've started the 6th Phase on the challenge moving to our next target at US$ 75,000 trading 15 lots within a max period of 3 months.

Actually I really think we can make it much faster than that, to achieve the target of US$ 25,000 trading 15 lots I need to make less than 35 points on ES on full size, as we make an average of 10 points a week, do the math.

But, of course, we might lose on one of the weeks so, if that happens, it might take us a bit longer to achieve that target which we really think will be met sooner than most expect.

Our rules are very clear, we add to the number of lots we trade as we reach new targets and *IF* we lose we can also decrease the number of lots we trade which so far has never happened.

For those who are not familiar with our "Million Dollar Challenge", we started trading a US$ 10,000 account from the beginning of August  by trading only 2 lots on ES with the first target at US$ 12,000 ...and now we are at our 5th target at  US$ 50,000+ having reached the 6th Phase of the challenge.

If you want to see how the phases are set check this blog post below:

Walking the talk

I'm really happy to have been able to do that in real time in our trading room but I'll be very honest here, I could have done it even faster if I had religiously followed the Diamond Setups system. :)

I can explain.

Our system has several different strategies for taking profits according to each trader's own style, but one of the most common strategies is called: MT

The "MT" strategy consists in taking half off on all trades at +2 points (8 ticks) and then another 25% off at +3 points and trail the remainder 25%, really simple, but if we were able to hold FULL SIZE we'd do it much faster! But it's psychologically "easier" to scale out...

Even without a perfect execution I could move fast through the first 5 phases, let's see how we do now with 15 lots on the 6th phase.

If you want to learn how I do it, join us at the Diamond Setups website and learn a simple but effective system to trade and win consistently.

Best of luck!

Wednesday, October 8, 2014

Challenge update: Phase 3 Complete

Once again we made it way ahead of planned date to meet target in December, thanks to the volatility on ESZ4 giving traders several chances to make it big every single day, but the truth is in the great majority of trades we made were not big winners, but several small winners.

We made over 100% in a little over 2 months as we started the challenge on August the 4th.

Here we go on Phase 4 now, trying to take the US$ 20,000 account to the next target at US$ 30,000 trading 6 contracts, *IF* we lose and go back to US$ 15,000 then we would decrease size back to 4 contracts, but we are looking forward to finish one more phase, moving closer to our main target.

We don't know where market will turn, but we do know the "key levels" where it might, on most of the time we are right.

I'll keep you updated, best of luck.

"Don't ever quit. Success seems to be connected with action, successful people keep moving, they make mistakes but they don't quit."  Conrad Hilton

Sunday, September 21, 2014

Challenge update: Phase 2 complete

Phase 2, the second target on the challenge at US$ 15,000 was to be achieved in 4 months/16 weeks, this week has been the 7th week since we started the challenge and we are already there, way ahead of my time expectations.

When I started the challenge in our trading room, traders were really excited about having a doable plan to achieve targets and were ready to face the challenge no matter what, day after day, week after week we'd fight to meet those targets.

We had a tough start as we lost right on the first week, so psychological capital got low at the very beginning but we quickly recovered and now have achieved targets on Phase 1 & 2. The rules are very clear on position sizing and risk management and we are ready to move on to our next target at US$ 20,000.00 or double size of the initial investment.

Deadline to reach this target is 2 to 3 months and the number of contracts is set to 4 on ES (S&P500 e-minis) from now on, but in case we lose and go back to US$ 12,000 then we would decrease size back to 3 contracts.

We know discipline is key and although we are not disciplined 100% of the time, as we do take profits too early sometimes or give up on a trade before our STOP gets hit, we have been doing really well, way above expectations.

Have a great week everyone!

"I think to be in the upper echelon of successful traders requires an innate skill, a gift. It's just like being a great violinist. But to be a competent trader and make money is a skill you can learn." - Michael Marcus, Trader.

Michael Marcus is a commodity trader who, in less than 20 years, is reputed to have turned his initial US$ 30,000 into $80 million.

Saturday, September 6, 2014

First target met - Phase 1 Complete


I finally met my first target on Phase 1, three weeks ahead of time as my plan was to make it in maximum 8 weeks.

If I was able to meet the initial 20% target I know it is possible to meet any target as long as I move without rushing, slowly but steadily, having patience to go through the bad days with confidence on the system and the discipline to follow its rules, any trader can definitely make his way to success.

On Monday we continue our challenge and start Phase 2, the next target is US$ 15,000, I will increase the size by 1 contract and will now trade ES (S&P500 e-minis) with 3 lots, expecting to meet next target by maximum November, the 8th.

The rules are clear when I reach the next target at 20 ES points (US$ 150.00 per point trading 3 lots) I will increase size again by 1 more lot, but if I lose and go back to US$ 10,000 then I would have to decrease back to 2 lots and start all over again.

"We all have dreams. But in order to make dreams come into reality, it takes an awful lot of determination, dedication, self-discipline, and effort." - Jesse Owens

Saturday, August 23, 2014

Challenge update: Approaching First Target: US$ 12k

Hi folks!

After 3 weeks of hard work we still haven't reached the first target on the challenge! Wow!

So is trading... I tried to be conservative in the first week and ended up losing, made up the losses on the second one and now after 3 weeks I'm closer to our first target.

Just a quick reminder: I started trading a US$ 10,000 account on August, the 4th and now we are close to the first target of US$ 12,000, we have reached: US$ 11,506.46

I trade it live in our trading room and I think we will reach our first target next week (as I'm writing this post on Saturday).

If I am able to meet the first target, then for sure I will meet the last, no rush though, step by step.

Have a great weekend everyone!

Sunday, August 3, 2014

Day 1 - Here we go!

This week we start trading our 1 Million Dollar Challenge, we're really excited about it as we know it is very doable and we will prove by doing it live in our trading room.

The main point is not the final target itself but the small intermediate targets we will meet along the way being the first one at US$ 12,000, or 20% of our initial investment, which will already be a very significant achievement, if we can reach the first target it means we can reach the last. The expected time to reach that initial target is from 1 to 2 months, but we do think we can make it much sooner than that.

The instrument we will use in our challenge is the ES (E-mini S&P500 futures) which is worth US$ 50/point, the average STOP out size is 2.50 points. When using the Diamond Setups System, by the experience we have using our system for four years now, we know that from 6 to 9 trades will work out of every 10 trades we take and that on every trade we can make from 3 to 10 points (or even more sometimes although it's much less often), although some of them will be closed at break-even level.

We also know that occasionally we might have some really bad days, once or twice every 3 to 5 months when we might get a sequence of losing trades, the infamous "losing streaks", when we could lose from 3 to 5 times in a row, so we are ready for tragedy, in case it happens we could lose up to 12.50 ES points or the equivalent of US$ 1,250.00 as we will start trading with 2 lots or US$ 100.00/point.

We do not know which setups will work so we will try to take them all during a trading day, it would be very unlucky if at the very beginning of our challenge we would start with a "real bad day" and have such a loss, but we'd ready for it if the market would play such a trick on us.

If everything goes as smoothly as expected, once we reach our first target of 20 points, or US$ 2,000.00, we will increase our trading size to 3 lots, so the risk will be totally off because then even if we get a "real bad day" we wouldn't lose any money, the worst thing if that happens once first target is met, would be to restart it all over again going back to the initial 2 lot size, we'll see, we're ready for both good or bad.

As I mentioned on our previous blog post I will post the results here on this blog on a weekly basis.

If you want to join us in the challenge and learn our system just sign up in our website: Diamond Setups.

We have traders from all over the world who will trade with us, for instance: USA, Canada, Australia, UK, Brazil, among some other countries, but the trading room is not crowded so I can give attention to everyone between trades and the calls I make are always ahead of time so that you can take them with me.

Best of luck!

Sunday, June 15, 2014

Walking the talk: The Trading Business Plan

Hi traders!

After my previous blog post "The road map from US$ 5,000 to 1 M" I received several emails asking me if that was something really possible to achieve, yes, of course it is possible, but it's certainly not an easy task.

So, I decided to create a real trading business plan to show how we can go from US$ 10,000 to 1 M and we will execute it real time, me and the traders who trade together on a daily basis in our trading room, using our trading system, the Diamond Setups, to achieve the target that seems like a far away dream to most people, mainly with such a "small" amount of capital to start any business, if we think about it, what business would we be able to start with such capital?

With the experience we have in day trading, gathered in over 20,000 hours of screen time and day trading, and also from using the Diamond Setups system for more than 4 years now, I'm really positive we can reach that target in less than 2 years, but the worse expected scenario it could take around 40 months to complete our target of US$ 1 M.

Everything starts with an idea, a plan, and we will make it to powerful execution and results. The results will be posted weekly on this blog, the challenge starts on August, the 4th, 2014.

We will set targets and what we do when each target level is reached, and use a sound risk management methodology and proven day trading strategies is how we plan to reach our target in the least time possible.

Targets and trading sizes are calculated in such a way that even during the so-called "bad times"*, when we might get stopped out even 3 times in a row, we do not give all profits back and even if we do we would just scale down to the previous level, regroup and start over, it will not be an easy journey, but it will definitely be worth it. The hardest expected time is of course the beginning levels, but after we breakout 4th phase, the level of confidence will increase dramatically.

The instrument we've chosen to day trade is the ES (E-mini S&P500), each point on ES is equal to US$ 50.00 (fifty US dollars) below I outline the first part of the plan which is the 14 phases that separates us from our target, as each phase is finished we increase the size we trade, making it a safer way to cut time in our pursue by using compounded profits.

So here's the first part of the plan on our challenge:

The Diamond Setups Million Dollar Plan (Part 1: The Targets)

Phase 1 starts with: US$ 10,000 
Trade size: 2 lots
Target in US$: 12,000 – In ES points: 20
Time to reach target: 1-2 months

Phase 2 starts with: US$ 12,000
Trade size: 3 lots
Target in US$: 15,000 – In ES points: 20
Time to reach target: 1-2 months

Phase 3 starts with: US$ 15,000
Trade size: 4 lots
Target in US$: 20,000 – In ES points: 25
Time to reach target: 1-2 months

Phase 4 starts with: US$ 20,000
Trade size: 6 lots
Target in US$: 30,000 – In ES points: 35
Time to reach target: 2-3 months

Phase 5 starts with: US$ 30,000
Trade size: 10 lots
Target in US$: 50,000 – In ES points: 40
Time to reach target: 2-3 months

Phase 6 starts with: US$ 50,000
Trade size: 15 lots
Target in US$: 75,000 – In ES points: 35
Time to reach target: 2-3 months

Phase 7 starts with: US$ 75,000
Trade size: 20 lots
Target in US$: 100,000 – In ES points: 25
Time to reach target: 2-3 months

Phase 8 starts with: US$ 100,000
Trade size: 25 lots
Target in US$: 150,000 – In ES points: 40
Time to reach target: 2-3 months

Phase 9 starts with: US$ 150,000
Trade size: 30 lots
Target in US$: 200,000 – In ES points: 35
Time to reach target: 2-3 months

Phase 10 starts with: US$ 200,000
Trade size: 40 lots
Target in US$: 300,000 – In ES points: 50
Time to reach target: 2-3 months

Phase 11 starts with: US$ 300,000
Trade size: 50 lots
Target in US$: 400,000 – In ES points: 40
Time to reach target: 2-3 months

Phase 12 starts with: US$ 400,000
Trade size: 60 lots
Target in US$: 600,000 – In ES points: 65
Time to reach target: 4-5 months

Phase 13 starts with: US$ 600,000
Trade size: 80 lots
Target in US$: 800,000 – In ES points: 50
Time to reach target: 2-3 months

Phase 14 starts with: US$ 800,000
Trade size: 100 lots
Target in US$: 1.000,000 – In ES points: 40
Time to reach target: 2-3 months

*We know by experience that every couple of months market gets real tough for day traders, we need to be ready not to lose our shirts during those times, and, on the other hand, we need to make the best we can during the "good times".