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

Saturday, May 14, 2016

"Challenge update: 1st target achieved" and also: "50+ point weeks on ES"

After just 13 trading days from the beginning of our 8th Challenge from US$ 10,000 to US$ 20,000, we were able to achieve our first target of 20 points, or US$ 2,000.00 trading 2 lots of e-mins (ES), which is not small for an account of this size, but we do have strict money management rules that allow us to be that aggressive and we could make 20%+ in such a short period.

The most difficult stage for any trader is the beginning of a new trading journey, usually after having tried to succeed several times and failed, the trader is hesitant, the level of confidence in himself is really low, but he is determined to make anything it takes to become a successful trader.

Now he has a good trading system so all he has to do is take all good setups and follow the rules, those rules never allow him to take a big loss, small losses are OK, he knows that, but the big question is: Is he be able to follow the rules? Psychological part is really important in our business.

Our next target now is US$ 15,000, so we increase size to 3 lots now for another 20 point target.

There are many different ways to trade using our system, the Diamond Setups, you can be a swing player for instance, to give you an idea, those who traded the swing setups this week were able to make a hefty 50+ points! (Trading S&P 500 e-minis, ESM6) That's the outcome for those traders week in, week out, with a occasional loss, and the best part is that they only have to work 1 or 2 hours a day. So if you traded for instance 2 lots, you'd have made US$ 5,000+ this week.

The only caveat for this system is that the stop-loss orders are much wider then our usual 2 to 4 points, so when a trader begins trading this style he has to be prepared if the first trades fail and he loses 10+ points on each trade, he must not be afraid and end up skipping the next one, which is what most traders do. Now if he is luck and the first trades he takes are winners then he might never go into losing territory, and his account might go one way up, that's the most sought after scenario by any trader. Then in order to trade this type of setup with 2 lots your account would need to be at least of US$ 50,000, so that you could risk 2% on each trade.

On the other hand, not only big players using our system are able to enjoy those types of returns. If you hold a small account we have a scalping setup that on the last 9 weeks has been yielding an average of 10+ points a day.

For that to be possible you have to like being an active trader to be prepared to take from 3 to 8 trades a day and risk small on each trade, from 1 to 3 points, using what we call the "HT strategy", where the minimum target is 4 points, and if you like to trail your trades and only leave if stopped out, you can score really big like in the example below:

Trade taken by HTs on last Friday:

[May 13, 2016 12:05:48 PM EDT]    RenaTrader    2058-60 key now (Resistance)

Those who trailed: +18 points or so in a single trade.

To learn more about our trading system, click here: ==> Diamond Setups

Tuesday, April 19, 2016

Challenge #7 done - target met at US$ 20,000 - new challenge starts on April, the 25th

After 7 weeks and two days we met the final target at US$ 20,000 from US$ 10,000 - ready to start the next challenge on Monday the 25th, we'll try once again to achieve 100% profit in 2 months or less trading ES (S&P 500 e-minis), without ever taking big risks, don't misunderstand, risk management is key in our system.

Every time we finish a challenge, besides the monetary reward, we feel proud of ourselves for having had the courage to do what was necessary without fear or hesitation, taking the trades when it was very scary to take them, because the smaller the account is, the bigger the fear is.

If you want to join us on the next challenge click here: Diamond Setups

Doubts? Questions about the system or anything? Send me email:

Saturday, March 19, 2016

Challenge #7 update: 2nd target achieved at US$ 15,000 - on to last target at US$ 20,000

This week we achieved the 2nd target on our 7th challenge, we reached the US$ 15,000 level and now on to our final target at US$ 20,000 trading 4 lots.

Most of the trades we take are scalping trades, we do not hold any position after market close, our targets are met just by scalping and day trading, we never take position trades.

I clearly show the entry levels in our trading room and confirm when my order gets filled so that the information I give is crystal clear for the traders who follow me, all entries are posted BEFORE the setup gets triggered.

For you to have an idea on how it works, look at this trade we took on Thursday for instance:

[Mar 17, 2016 9:57:14 AM EDT]    RenaTrader    GTS 2012.75

[Mar 17, 2016 9:57:40 AM EDT]    RenaTrader    GTS entry: Long 2013.25-12.25

[Mar 17, 2016 10:01:09 AM EDT]    RenaTrader    HARD STOP 2009.25

This is the way I make the calls on a daily basis, with clear entry levels and STOP, look how the trade was called minutes before we got filled, because timing is important to us. After getting in, we have rules for different styles of trading, some traders like to take profits at the initial target, others prefer to trail and only leave the trade if stopped out, besides that, we also have rules about how to hold or scale out, some traders will scale out as it goes up, locking in some profits along the way, while others will go "all in, all out", taking full profits only at the target levels.

When/if STOP LOSS is hit we get out without hesitating and wait for the next setup.

By the way, GTS stands for the type of setup we were taking, it was a day trade.

We do the same thing over and over again following the rules strictly, and we know that our execution does not need to be perfect for us to be consistently profitable, some traders might take profits early, but even those who do that (our minimum target is 4 points) are profitable week in, week out.

If you want to join us and learn how we do it, click here: Diamond Setups