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!

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