Friday, January 6, 2017

The power of just 2 points a day trading ES

It's really interesting to see how just 2 points a day on ES with just one lot in the beginning can do wonders to those who have a good trading plan, see the table below:

From US$ 5,000 to US$ 1 M trading ES (S&P 500 e-mini futures)
Stage #    US$SizePts for target  Target in US$

1$5,000.001    40               $7,000.00

2$7,000.002    30  $10,000.00

3$10,000.003           20  $13,000.00

4$13,000.004    35  $20,000.00

5$20,000.006    35  $30,000.00

6$30,000.008    25  $50,000.00

7$50,000.0010    30  $65,000.00

8$65,000.0012    25  $80,000.00

9$80,000.0020    15 $100,000.00

10$100,000.0030    35 $150,000.00

11$150,000.0040    70 $300,000.00

12$300,000.0060    35 $400,000.00

13$400,000.0080    25 $500,000.00

14$500,000.00100   100 $1,000,000.00

That makes a total of 520 ES points, 2 points a day, 10 points a week, trading size grows as targets are met.

In order to be able to make that happen you need a proven trading methodology with a sound risk management and the discipline to execute it.

If you don't have a system join us, try the Diamond Setups: 

Trading in futures is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

Sunday, October 23, 2016

Final target achieved on Challenge #9

...and a new Challenge has come to an end, once again we were able to double the account from US$ 10,000, this time it has taken us 3 months and 10 days to achieve our target, it was not easy, as usual, but we made it once more.

There were tough times to day trade during Summer, we had real tight range days, it was difficult for us to catch good setups any missed opportunity could have been the only one of the day, during several days we were able to take just a single trade while on others even no trade at all, a really tough test checking our discipline and patience to wait for a good setup, traders tend to trade carelessly when good setups take long or even don't show up at all.

But, even though, we were able to make it happen because we KNOW determination to succeed is what makes the difference between losers and winners, if we wait and only take the good setups, we know that from every 20 or 30 trades we will be winners on the great majority of them, 70%+ of all trades work in our favor, statistics don't lie, they repeat over and over again, staying the same in the long run.

Ready to start a new challenge with us day trading ES (S&P 500 e-minis)?

Our Challenge #10 starts on November the 1st, once again we will try to take an account from US$ 10,000 to 20,000 in 3 stages:

On the 1st stage we start trading 2 lots until we reach US$ 12,000,

2nd: 3 lots from US$ 12,000 to 15,000

3rd: from US$ 15,000 to 20,000 trading 4 lots.

Join us by clicking here: Diamond Setups

If you want to send me email:

Best of luck!

Saturday, October 8, 2016

Spot the patterns, follow the rules

This month we complete the 6th year teaching our trading methodology on futures (ES) and Forex, it's been a long road up to where we are today, really happy to have been able to reach such level.

It all started on Twitter, back in 2009 I used to post some of my trades and one of the traders that followed me asked me how I did to be right on my calls so consistently and I jokingly said: - "Send US$ 1,000 to my PayPal account and I'll teach you how I do". And to my surprise on the following day he sent that money to my account and I had no other thing to do but to start teaching him how I did through chat on Skype, every time I spotted a new trade I told him whether to go long or short and showed on the charts why I was taking that trade...

At the same time that I was teaching him I was writing all the documentation on each of the setups I used then which later on was all published on my website for all the new members that came after that first one.

Today, after having taught my trading system to over 600 traders since 2010, I learned that most who signed up were looking for "a get rich quick scheme", but unfortunately that does not exist in trading, anyone looking to be successful in this business will have to put in the long hours of dedication and hard work required until they can become successful and able to live off of it, those who don't give up and have the discipline to follow the rules that are taught will be rewarded if they're patient enough to go through all ups and downs of a trading career, as it is the case in any other profession.

Markets change their behavior completely now and then, making totally different cycles along a trading year, we might have something from 3 to 5 different phases that we need to adapt our trading system or die, our job is to spot those changes and tweak the system here and there, it is dynamic, there is no comfort zone where we can sit and stay indefinitely, change is the normal core of our business.

Of course experience does help a lot spotting those changes in a timely manner, that is of fundamental importance if we want to survive and make money consistently.

Our over 20,000 hours of screen time does help showing our members the changes of mood in the markets, all we know is that patterns repeat themselves over and over again, our job is to find those patterns in play and take action by pulling the trigger and managing our risk on each trade.

If you want to be consistently profitable in this game, the only way is to have clear rules and follow them with discipline and patience, to name a few of those rules I'd stand out:

- having the patience to wait until the market shows a pattern that meets a certain criteria and when they do,  not to hesitate pulling the trigger

- taking profits at the predefined targets only

- having a strategy to scale out of a trade or go full size and stick to it

- never, ever taking a big loss

- respecting STOPs and so on...

Patience and discipline are key to success.

It's relatively easy to learn a trading methodology, where to buy/short and why, it will take you 1 or 2, maybe 3 weeks, the difficult part is to have the right mindset to follow the rules.

Our Challenge #9 is coming to an end, we must meet the final target either this week or the next one, we should be able to meet our target once again from SU$ 10,000 to US$ 20,000 in a little more than 3 months this time, so next challenge will begin by the end of this month: Challenge #10.

Join us by clicking here: Diamond Setups

If you want to send me email:

"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

Best of luck!

Saturday, September 3, 2016

Challenge #9 update: 2nd target reached, +50% in less than 2 months

Yes! We made it once again. Trading ES (S&P 500 futures e-minis) very conservatively due to the tight market we experienced during August summer trading when we had several days of 10 points or less ranges in regular trading hours.

From US$ 10,000 on July, 11th to US$ 15,000+ on September the 1st, next target: US$ 20,000, now we will be trading with 4 lots.

It was a trading period when we had to be really patient, on many days we had only 1 single trade, and even days of no trade at all, just watching, it was really difficult, mainly for those who think they need to pull the trigger everyday to be profitable, they want to to be in on every point the market moves, no need for that, we only trade when we see a good probability of making money, we don't want to just trade, we want to take trades that will yield a minimum of 4 full points or more.

We know that if we follow our system rules and only take the qualified setups, we have no doubt that 70-80% of the trades will work, allowing us to slowly increase the size we trade, pushing us higher and higher on each week/month.

And now that summer trading is done, let the volatility explode making it possible for us to take more trades and make more $$$$ on a daily basis.

If you want to learn a simple but yet effective system to trade, join us:

Diamond Setups, click here to learn more ==>

Sunday, August 7, 2016

Trading successfully - It's all about statistics

Challenge #9 update: approaching the 20% profit target, after 4 weeks, challenge started on July, 11.

We expect to reach that target early this week, all we know is that if we take all the setups our system triggers, profits will take care of themselves giving us 70%+ of winning trades, all we have to do is to watch the market waiting for those patterns that fit our criteria and when they show up, we pull the trigger without hesitating, a trading system is nothing more than a group of specific rules that determine entry and exit spots for a given instrument.

As our main instrument for day trading is the ES (E-mini S&P 500 futures), our minimum target for each trade is 4 points while our average STOP loss is 2 points, giving us a risk reward of 2:1.

So, do the math: if we're profitable in 70%+ of the trades (7 out of 10 trades are winners) then in a 50 trade sequence we would have a possible outcome like below:

50 trades ==> 35 winning trades = 35 X 4 points = 140 points
                       15 losing trades     = 15 X 2 points = -30 points

Total in points after 50 trades: +110 points X US$ 50.00 = US$ 5,500.00 per contract

This is the average outcome you can expect if you follow the rules of our trading methodology, but it also depends on the volatility at the time, when we have more volatility we may be able to take more trades and besides that we can increase the quantity of winning trades, taking the winning ratio from 70% to 80 or even 90%+, but, on the other hand, we will also see short periods of lower win ratio, from 60 to 65%, so let's illustrate that with a pessimist example of an outcome of only 50% win ratio, it would be something like this:

50 trades ==> 25 winning trades =  25 X 4 points = 100 points
                       25 losing trades     = 25 X 2 points = -50 points

Total points after 50 trades: +50 points X US$ 50.00 = US$ 2,500.00 per contract!

Discipline & rules profit, even with a 40% win ratio you'd still be profitable, you'd need to lose on over 65% of the trades to be in a losing position after that sequence of 50 trades.

Have in mind that when we have a higher volatility the number of trades we take increase, then that sequence would take less than 2 weeks to be done.

The Diamond Setups members know that in the last 5 years or so we've never experienced a losing ratio below 50-60%, we are certain that in that sequence of trades we will see profits, the only thing we don't know is how the sequence of winners & losers we will come up, it might be something like this: win, win, win, lose, lose, win, lose, win, win, win... and so on.

Just do the right thing and follow the rules, profits will be automatic, it feels really good when we're sure about that, if we do the work we'll be rewarded and be in the exclusive club of consistent winners.

Join us: Diamond Setups:

Have a great trading week, best of luck!

Saturday, July 9, 2016

Challenge #8 done: target achieved at US$ 20,000

This time our challenge has taken us two and a half months to reach our main target at US$ 20,000, we had 2 difficult weeks when profits were really sluggish, resilience is a must in our business, only the strong minds can make it through the more difficult times in the markets.

The BREXIT thing was not easy to trade so we spent more time watching than trading during that short period, it's really not easy to control the anxiety to take trades and try to make money, but if we don't see setups we like we rather just sit on our hands than trying and losing, it's so much easier to lose, don't forget that only 10% of all traders are able to be consistently profitable.

One of the advantages of using a trading system you have confidence on, is that you don't mind just sitting and waiting, you know statistics speak for themselves, so we wait until we see a high odd trade coming our way, but for newer traders it all looks like a real waste of time, they want to trade no matter what, but, at the end of the day, they understand that it's better to keep going forward slowly than going backwards.

In trading we do make mistakes almost daily, things like taking profits too early, or giving up on a good trade before the stop loss order gets hit are common, we are human beings and on some days we may not be at the top of our performance, as traders, our state of mind really makes the difference on results, traders are prone to making mistakes, but we are aware that we do not have to be a super trader to make money consistently, there is no need to be perfect, as long as we don't make the unacceptable mistake of taking a big loss in a single trade, never let that happen to you, small losses will not kill us, when stopped out, next!

On Monday, July the 11th, we start a brand new challenge: "Challenge #9" - from US$ 10,000 to US$ 20,000 trading ES (S&P 500 e-minis). This time it will be in just 2 stages, we start trading 2 lots and when we reach half way at US$ 15,000 we'll increase the size to 3 lots.

So our main target will be a little more than 80 points, let's see if we can make it once again and how long it will take.

We know that if we trade with discipline, without emotion, being patient to wait for the good trades and not giving up after 2 or 3 losses on a bad day, we will get there again, no doubt.

Trading is a process, we just have to repeat it over and over again until we reach our targets.

In our trading room, calls for the trades we take are made way BEFORE the trade takes place, giving you enough time to enter your orders.

Join us this time!

Click here: Diamond Setups - The only edge you need

"If you think education is expensive, try ignorance" - former president of Harvard University, Derek Bok

Saturday, June 11, 2016

Challenge #8: Second target achieved at US$ 15,000

We finally met our 2nd target at US$ 15,000 from US$ 10,000, it's a 50% profit, huge for just 7 weeks, without having risked to lose our shirt, we know risk management is key if we want to be successful in this business.

On the previous two challenges we achieved the 2nd target in just 3 & 4 weeks though, this time it has taken us 7 weeks, why did it take longer this time?

Markets have different cycles, during some periods market can be very generous, allowing us to make huge profits with bigger volatility and wider ranges, we are able to take more trades, the more trades we take the more money we can make, we only take those trades that have high odds of working, so when ranges are tighter we need to be more conservative and we spend most of the time watching, preserving capital when it gets more difficult to trade is an important part of the trader's job, discipline is a must if you want to make money consistently.

When markets move in a single direction it gets more difficult for day traders to jump in, that type of behavior requires more discipline to wait for the right opportunity to trade, as a guepard waits for the right moment to get his prey, so does the trader need to wait for a good setup, and take them without hesitation once they're spotted.

As traders we know making mistakes is OK, as long as we learn from them and do not allow them to become bad habits.

Looking forward to start pursuing our next goal at US$ 20,000

Join us and see how we make it week in, week out: click here ==> Diamond Setups

“A trader who didn't make mistakes would own the whole world in a month." - Jesse Livermore