Trading Became My Income, Removing You From The Equation – Part III

Posted by Chris Vermulen -

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In my last post I talked about how my trading evolved over time and how I ended up being a full time “quant geek” running and trading my own automated trading system. This section I talk about why you nneed to be removed from the equation for maximum success. 

Simple automatic investing that actually makes money is something almost everyone wants. And it is the reason algorithmic trading systems are becoming more popular and more services are making it easier for individuals to build their own simple automatic trading systems.

In Part I and Part II of this series about how I got started in systems trading and how I built a simple automatic trading system for trading my own capital and to eventually share it with fellow traders we have covered several topics. Understanding how and why a system is trading is important for its users as it provides comfort in knowing the system complies with your line of thinking and market logic.

Through my simple automatic trading system and order execution you can free yourself from the painful grind of staring at a computer screen and struggling with yourself to follow your rules and execute trades according to plan. Do not get me wrong, the creator of the automatic trading system must always be monitoring things, maintain and updating the code when required. But users using the simple automatic trading strategy provided by a firm can simply setup their trading account, link it with the automated trading system and walk away without ever having to learn or do anything else.

How My Simple Automatic Trading System Works

Keeping things short and to the point, my system is based around the S&P 500 index. You can opt to trade either the 3x leveraged ETFs (UPRO & SPXU) or trade the original automated trading strategy using the ES mini futures contract.

Both trade virtually the same but can vary at times. Because ETF’s have the tendency to fluctuate a little more than the underlying index it can lead to an extra trade or missed opportunity from time to time. The real difference is in the performance. The ETF’s use 3x leverage while the futures contract uses 10x leverage. You definitely get a better bang for your buck with futures.

Why Automatic Trading and Why Trade the S&P 500 Index?

Automatic trading may sound risky and crazy and it can be depending on how active the system is, the creator, the programmers experience and what platform the system is run on (server, charting program etc..) but in reality it’s just a set of trading rules which you create, test, approve and trade via computer.

If you have common sense, a solid logical strategy, and a top notch programmer you should eventually be able to create your own profitable automatic investing system. Also if you trade more than one investment then you know how easy it is miss a trade because you were watching another chart or responding to emails or living life… Well automated trading systems make it so you do not miss another trade again.

The S&P 500 index I think carries the least amount of volatility and is diversified with the top 500 global corporations. Also it is the most liquid investing vehicle available for the stock market which keeps slippage to a minimum for optimum order fills.

Simple Automatic Trading – It Takes Money to Make Money – Ante Up!

We all know the saying “It Takes Money To Make Money” and it could not be more true. Unfortunately most traders fall victim to all the false advertising in this industry thinking they can make $87,523 in one trade with only $5,000 etc…

There are several things an individual must have in place to make money in the market and a properly funded trading account with enough money to manage positions is one of the most important things needed. But again most people are trading with accounts of $500 – $10,000 in size which is not enough to make any real money. Sure it’s fun trading and dabble with a little money, but do not expect make much.

algo-tradingThe financial markets are a numbers game in almost every way, shape and form. If you truly understand how the market moves, probabilities and percentages then you know the more money you have the more likely you are to succeed with a winning strategy. Even if one is given a winning strategy but their account is underfunded and they do not understand position sizing, that individual will eventually lose money. There are fixed fees with trading and just to overcome them with profits requires more capital than $10,000 in most cases.

The general rule is to trade with a minimum of $35,000 which is just enough for you to trade a position size that can generate gains while allowing you to scale in and out of the market at key turning points.

Knowing how much money is required to trade and manage my ETF and futures automatic trading system is important and I will show you some conservative numbers of what to expect each month on average.

How to Make $1,000 to $2400 Each Month with Simple Automatic Trading

Since inception in March 2007 when I started running my automated trading of the ES mini futures system it has returned an average of $2400 a month. This is trading only a $35,000 account and never trading more than $15,000 per trade (3 emini contracts). The results have been truly amazing!


Money buys you time – and time translates to the freedom
to pursue happiness and personal growth, the freedom to
help others, and do whatever you want.

Simply put, I offer a simple automatic trading solution that has your best interest in mind. Making as much money as possible through algorithmic trading while also controlling downside risk. The most exciting part is that it’s automatically traded within your brokerage account using our simple automatic trading system.


Click to Learn More About My Simple Automatic Trading

Chris Vermeulen

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