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".

1 comment:

  1. What an exciting and bold prospect. I shall join you in this ride. Lets make it happen. Simple.

    ReplyDelete