"Millionaire in 10 weeks" thread

[Merlin]

Question about exit place. Is the place marked with a red circle the only place where we should exit? If so, please explain why not exit in places marked by yellow circles?

Look at the number I got in (1,490.70) and the number I got out (1,485.70) do you see the 5 pt difference?

1 pt = $5 so
5 pts = $25

Since we pay $25 to buy a contract and we make a $25 profit by doing those 5 pts, we have just doubled our contract.

Tomorrow we can now buy 2 contracts of $25 each.

Follow me now?

[wojt864]

aaa ok, now I got it. Quite logical

[Merlin]

aaa ok, now I got it. Quite logical

Yup, that's all we need, 5 pts, to double our Russell 2000 Micro Futures contract.

Again, each contract cost us $25 to buy and trade with and if we make 5 pts we make $25 or a 100% R.O.I. and can now buy 2 contracts the next day and try to make another 5 pts to double that $50 into $100 and so on...

That's the whole $25 to $1 Million concept here.

[wojt864]

yes, I remember this graph

[Merlin]

yes, I remember this graph

It all starts with the initial $100 we deposit at AMP Futures when we open our trading account. We split this $100 into 4 blocks of $25 (1 green, 3 orange), buy one Russell 2000 Micro Contract (symbol: M2K) and we try to make our 5 pts to double our contract.

This is where my indicators come in to help us out picking the right TREND then find the right DIP and enter at the RIGHT time in the RIGHT direction to make those 5 pts.

[Nevi]

I dug around for the available Russell data on Tradestation
This is a brief summary.

I’m now leaning toward all of the TO data belonging to the RL from the CME exchange, because after the change over there were open future contracts that still had to run their course till they expired.

And it looks like the ER2 data and the TF data have been merged together.

[Merlin]

I dug around for the available Russell data on Tradestation
This is a brief summary.

The attachment Russell Data Dates.gif is no longer available

I’m now leaning toward all of the TO data belonging to the RL from the CME exchange, because after the change over there were open future contracts that still had to run their course till they expired.

And it looks like the ER2 data and the TF data have been merged together.

Hi Nevi,

To be honest, I never understood that part where they had the ICE which seems to be in NY while we all know the eMini Futures were invented and traded at the CME in Chicago so why the hell NY got into this? I have no clue.

Jealousy maybe because Futures outclass Stocks by a mile?

Anyway,the Russell has so many names it's a joke. Not only you have the new Micro (M2K) that came in this year but recently the former mini TF was renamed RTY and seems to have left NY to go back to the CME or something like that.

Like I said, I'm lost in all this and to be honest, I don't really care because all that matters is that we can have the Russell 2000 (Mini or Micro) contract on our charts so that we can trade it.

Btw, have you heard me talk about this at TradeStation?

This is the reason why I trade the Russell 2000. It simply is what pays the best regarding the initial investment vs ROI at the tick level.

This is the short version...

WhatPays.gif (7.3 KiB) Viewed 2352 times

And this is the detailed one...

You can see that If I invest $25 on a stock, at 1 cent per tick, it will take me 2,500 ticks (100 ticks per $ X 25) while with the Russell, the intraday margin of my new broker for the M2K is $25 and the tick pays $0.50 so after only 50 ticks ($0.50 X 50 ticks = $25) I double my initial $25 and can now buy a 2nd M2K contract.

At TradeStation the M2K cost around $100 so you will need to make 200 ticks (20 pts) over there at $0.50 each to make an extra $100 and double your contract.

As you can see for this morning too, whether you would have entered on the 1st green circle right at the Open or later on this morning when the price went above the blue cloud, you would have made your 5 pts and doubled your M2K contract but at TradeStation, you would still have to make another 15 pts....

[Merlin]

In fact, it's a VERY GOOD day for my 2 clouds indicator...

There were multiple dips above the clouds that led to a 5 pts profit.

[Nevi]

I have a query in at Tradestation Data Integrity about listing CME data as ICE data, we’ll see what they say.

If what I see is correct, in my opinion, mashing data from two exchanges together is pretty sloppy data management, and it would put into question testing on TF data before 2007.

I do recall in one of the topics at Tradestation you made a good case for trading the Mini Russell TF over the Mini S&P ES because of the better point value, making it easier get the daily point requirement and double the contracts.

By switching to the Micro Contract M2K you would be making less per point, so wouldn’t that make it more difficult to double up and reach the goal.
Are you considering starting on the M2K contract and once you reach 10 contracts, switching to 1 RTY contract?

[Merlin]

By switching to the Micro Contract M2K you would be making less per point, so wouldn’t that make it more difficult to double up and reach the goal.
Are you considering starting on the M2K contract and once you reach 10 contracts, switching to 1 RTY contract?

Yes of course, I will start with the Micro Russell contract (M2K) that cost $25 per contract and pays $5 per point and then when I reach 10 M2K contracts, I will switch to the Mini Russell contract (RTY) that cost $250 per contract and pays $50 per point.

If you look at the bottom of my $25 - 1M diagram, you will see that we start with $100 which we will divide into 4 blocks of $25 (1 green, 3 orange) and then double our way up and then switch to the Mini when we are above 10 Micro contracts.

The beauty with the Micro contract is that it helps EVERYONE to get in the trading game because now you can open a trading account and deposit as low as $100 which wasn't the case with most brokerage firms like TradeStation where you needed a minimum of $10,000 not too long ago.