You Don't Have to Trade Max Size: New Funded Trader Velimir (Germany)

Posted by TopstepTrader on November 07, 2017

Velimir Funded Trader.png

Three Trading Lessons from Velimir's Success:

You don't have to use all the size all at once: Velimir was in a $150K Trading Combine® and Funded Trader Preparation™, which gave him the ability to trade three lots to start - and up to 15 lots when he started to profit. Yet Velimir knew that he didn't have to trade huge size immediate in order to reach his goal of a Funded Account™. Instead, he averaged just more than two contracts at a time. On his most profitable day in FTP, he made 22 trades for a total of 48 contracts - profiting $2,442.93 in the process.

Know when you should call it a day - even on your great trading days: Velimir was undoubtedly on a hot streak while in FTP. He reached his profit target of $9,000 in eight trading days. But what was remarkable was that on each of those days, Velimir's closing account balance was the same as his P&L high mark. That means that he had the incredible ability to know when to stop trading. Could he have added to these profits? Possibly. But more likely, he would have put those gains at risk. After all, who can be upset about an average daily P&L of more than $900?

You can trade more than one product - but don't go crazy: Being in Germany, Velimir is primarily trading during European hours. In FTP, he was equally successful trading the Euro and the Emini S&P 500 - averaging more than $625 in profits on each day he traded those products. However, his risk / reward was much better on the S&P 500. He average $92.58 in profits on a winning trade, while losing $51.48 per losing trade. On the Euro, he average $194.07 in profits to $177.78 in losses. He also had a much higher success rate on his S&P 500 trades - 92% compared with 79% on Euro trades. 

Three other observations from Velimir’s trading:

  1. In his Funded Account, Velimir is going to have to work on bringing up his average winning trade and minimizing his average losing trade. In Funded Trader Preparation, they were roughly equal - at $135.71 in gains for an average winner and $131.05 in losses for an average loser. Since we expect that it will be challenging to continue to profit on 85% of trades, Velimir will have to bring up his average winner in order to stay profitable. 

  2. During FTP, Velimir only had one substantial drawdown - losing $1,525.41 on his second trading day. That erased his first day's gains and put his account balance negative $500. But he didn't let that deter him and ended up rallying back to make $3,000 the rest of the day and end with $1,663.90 in profits. 

  3. In the short term, Velimir hopes to be consistently profitable, eventually making enough to live off of trading. He is off to a good start in his Funded Account. On October 25, he made $1,340 trading the DAX. 
Great work Velimir!

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Here's a snapshot of Velimir's Funded Trader Preparation dashboard. 

Velimir FTP Dashboard.jpg

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Topics: TopstepTrader Funded Traders