October 18, 2011

They said I couldnt do this… E-mini ES Automated Trading Strategy

Hi Guys,

 

Its been a tremendous day of discretionary scalping, intra-day, and swing trading with us in our live trade room, but its time to take a moment to review our automated trading system.

 

If you recal, we’ve had impressive results from the Crude Oil, Russell, and Euro (click those) over the past three months, and today I wanted to remind you that the ES is always a market we can use with this automated trading system.

 

Lets see how the E-mini ES has done the last 30 days…

Over the past 30 days this fully-automated trading system only took 84 trades to earn $5362 in profit per contract, with only $1,000usd in drawdown on the account.

  • $5,362 with 1 contract
  • 84 trades @ $5/rt = $420usd in commissions
  • $1,000 drawdown means the MOST you lost in the past 30 days was $1,000 
 The Great thing about this automated trading system is the fact that it takes small losses, and lets the winners RUN!

This is the exact OPPOSITE with most automated trading systems, which use very wide stops attempting to never take a loss, well, that doesnt work well because it results in HUGE Drawdown on the account. 

Think about this…. if I use a 5-tick stop and take 5 losses….I lose 5 x 5 = 25 ticks of loss.
What if i used a 20 tick stop, and took 5 losses…I now lose…woah…100 ticks of loss.

Which would YOU chose?  Losing 25 ticks or 100 ticks?  Now you see why we LOVE these tight stops.

You’re never going to get the high percentages we see in our discretionary trading method, so do expect to see some losses, but those are small, and the winner are BIG.

Makes ‘cents to me…makes DOLLARS if you ask our traders!

Want to learn more about our Automated Trading Strategies?  We train our members on this every Monday and Wednesday @ 1130am EST.

Come see me tomorrow for our next members training!

    schooloftrade

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