Monthly Statistics for Real Time Trading for August 2011
8/01/11 8/02/11 8/03/11 8/04/11 8/05/11 8/08/11 8/09/11 8/10/11 8/11/11 8/12/11 8/15/11 8/16/11 8/17/11 8/18/11 8/19/11 8/22/11 8/23/11 8/24/11 8/25/11 8/26/11 8/29/11 8/30/11 8/31/11
Aug 1: -6189 4W 11L, Aug 2: -3582, 2W 4L, Aug 3: +30215 24W 12L, Aug 4: -2521 5W 6L, Aug 5: +151333 52W 2L, Aug 8: +17520 4W 0L, , Aug 9: +91,312 42W 21L, Aug 10: +1693 17W 13L, Aug 11: -14642 3W 11L, Aug 12: +34006 22W 8L, Aug 15: +1546, 5W 4L, Aug 16, -11095, 9W, 17L, Aug 17 +9483, 13W 2L, Aug 18: -27836 2W 9L, Aug 19: +127417 37W 11L, Aug 22: +29279 7W 1L, Aug 23: -24394 1W 9L, Aug 24: +38747 26W 6L, Aug 25: -6196 6W 6L, Aug 26: -5552 2W 14L, Aug 29: +29111 15W 1L, Aug 30: +35057 23W 4L, Aug 31: +2183 7W 10L
Gross winning trades = $598,904
Gross losing trades = (-$103,682)
Net Gross Profits = $495,222
Number of Markets = 80
Account size recommended to trade all 80 markets = $1,000,000
Number of trades in August '11 = 510
Win = 328
Loss = 182
% Win = 64%
Average Trade Profit (win loss) = $971
Theoretical Real Time Profits After Transaction Costs:
I am going to call this the "Pajama Trade Formula (see my article PAJAMA TRADING) for calculating a reasonable projection of transaction costs. I have traded accounts ranging from $6,000 to 6,000,000 and the figures I present here seem reasonable based on my experience. Actually I think I can do better than this formula calculates, but you may do worse than this formula calculates until you have had some practice and experience. Nevertheless pajama trading is not that difficult to learn and is the only way to go to effectively cut transaction costs.
To calculate transaction costs simply take the total number of trades (510) and multiply by $200 to get $102,000. Then subtract $102,000 from the Net Gross Profits of $495,222 to get +$393,222.
Using $200 for transaction costs is a little arbitrary but is reasonable based on my experience trading million dollar accounts. Most people will be trading much less than one million dollars and if that is the case I would recommend to seek out brokers charging no more than $5 per trade (some will do it for as little as 40 cents). The transaction cost figure of $200 includes slippage and and is an estimate for a million dollar account. But the transaction costs will be much lower for a smaller account. For example the transaction costs on a $5,000 account may only be about $4 per trade.
Projected Real Time Profit for August '11 AFTER taking out transaction costs of $102,000:
Divide +$393,222 by 1 to get average profit per month or +$393,222. Using this average projection we can figure that our profit for one year would be 4,718,664 (12 X 393,222) and that comes out to a projected annual gain of 471.87% on an investment of $1,000,000
Combined Statistics for Real Time Trading for December 2009 through August 2011(21 months)
Gross winning trades = $3,580,642
Gross losing trades = (-$1,487,269)
Net Gross Profits = $2,093,373
Number of Markets = 80
Account size recommended to trade all 80 markets = $1,000,000
Amount of money committed to each trade if traded on margin = $30,000
Number of trades in 21 months = 5309 trades
Win = 2873
Loss = 2436
% Win = 54%
Average Trade Profit (win loss) = $394
Theoretical Real Time Profits for 21 months AFTER taking out $1,061,800 for Transaction Costs:
Please Note: On June 15 2011 we started trading from both the long and the short side. From 4/30/11 to 7/29/11 we encountered a nasty draw down of $184, 652 from our previous equity high (22%).
I am going to call this the "Pajama Trade Formula" (see my article PAJAMA TRADING) for calculating a reasonable projection of transaction costs. I have traded accounts ranging from $6,000 to 6,000,000 and the figures I present here seem reasonable based on my experience. Actually I think I can do better than this formula calculates, but you may do worse than this formula calculates until you have had some practice and experience. Nevertheless pajama trading is not that difficult to learn and is the only way to go to effectively cut transaction costs.
To calculate transaction costs simply take the total number of trades (5309) and multiply by $200 to get $1,061,800. Then subtract $1,061,800 from the Net Gross Profits of $2,093,373 to get $1,031,573 real time profits.
Using $200 for transaction costs is a little arbitrary but is reasonable based on my experience trading million dollar accounts. Most people will be trading much less than one million dollars and if that is the case I would recommend to seek out brokers charging no more than $5 per trade (some will do it for as little as 40 cents). The transaction cost figure of $200 includes slippage and and is an estimate for a million dollar account. But the transaction costs will be much lower for a smaller account. For example the transaction costs on a $5,000 account may only be about $4 per trade.
Projected Real Time Profits for 21 months on a million dollar account AFTER taking out transaction costs of $1,061,800.
Divide $1,031,573 by 21 to get average profit per month or $49,123. Using this average projection we can figure that our profits for one year would be $589,470 (12 X $49,123) and that comes out to an annual return of 58.95% on an investment of $1,000,000.