Overview

My intention in sharing this material is for my exploits to be inspirational. In my earlier article ‘Trials and Tribulations of High Leverage’ based on my August 2021 campaign, I showed I had turned $1,200 USD into $12,500 USD in 18 days and I quipped: “Can I do this all the time? Of course not! I have to wait for the lows. Do my trading results always look this good? Of course not! They sometimes look better…”

In this article I prove that statement correct because in my October 2021 campaign, I took $1,193 USD to $95,555 USD in 22 days. $91,000 USD from my broker’s account arrived in my bank account as $117,000 AUD.

The results shown in this campaign produced an average yield of 8053.32% per annum. Such a yield, if continued, compounds $1193 USD to $1,000,000 USD in 34 days. See Article Appendix for calculations. The reality is the market does not climb at a consistent rate over 34 days because there are pullbacks. So, this figure of 34 days is mathematical, not practical.

My hope is the studious will find this a valuable study.

Disclaimer

Past results are a very good indication of future results – generally.

Don’t try this at home as it will likely be dangerous to your wealth. You need to make the effort, develop the knowledge, and learn to overcome the psychological barriers. These require time, in my case over 20 years.

The Campaign Start

On 15 October 2021, I had phasing suggesting price was approaching at least a 20 week low. In the fullness of time, it turned out to be an 18 month low.

My phasing was clearly not quite right because price was lifting up strongly and so the expected low had already occurred. I entered long immediately on S&P 500 (SP500), NASDAQ (ND100) and Dow (WSt30) on the daily, 4 hour and 1 hour timeframes using KATS, my automated software.

Here is what I was looking at on SP500 Daily after all these trades were entered.

See the trades in the lower section.

The Campaign Early Trades

It became rapidly obvious there was no point trading WSt30. The return per unit margin was very low. Therefore, I turned off new entries and traded SP500 and ND100 only for the remainder of the campaign.

The Campaign End

SP500

ND100

WSt30

Post Campaign

It is always interesting to look at what happened after a campaign is closed out. Did price continue to go in the trade direction or did it pull back?

The Campaign Trades

There were also some dividends paid.

The Campaign Metrics

Equity

EQUITY Difference from Previous Trading Day

Notice the last three days had handy profit at over $18,000 each day!

From Leverage Comparisons 211106.xlsx

$ CHANGE from Invested Capital

% CHANGE from Invested Capital

% CHANGE per day since START

The average percent increase per day was 116%.

Intraday Date Time and Equity

Tracking intraday equity shows the variation that can’t be seen when just looking at close figures.

% CHANGE in Equity per HOUR

I think it is instructive to show the short percent variation that occurs across a range of minutes/hours. It should be noted this is not something I concern myself with. I always have a sense of how trades are going but, TIME is much more important. Focusing on money is not what trading is about.

Metric Summary

MT4

Mathematical Expectancy (ME)

SQN

Unfortunately, initial stop losses were not recorded.

Conclusion

The results shown in this campaign produced an average yield of 8053.32% per annum. Such a yield, if continued, compounds $1193 USD to $1,000,000 USD in 34 days. See Article Appendix for calculations. The reality is the market does not climb at a consistent rate over 34 days because there are pullbacks. So, this figure of 34 days is mathematical, not practical.

For comparison (my emphasis) from Profit Magic: Can a $10,000 investment yield $1,000,000 in a year? In five years? If so, what is the risk involved?

These are the kinds of questions to which this work is addressed. Such fantastic results are possible in the stock market. Individual issues fluctuate widely enough and often enough to permit this and more. Techniques are presented here that put an average yield on invested capital of 10% per month well within the realm of possibility. Compounding profits at this rate, such a yield can return $1,000,000 on a $10,000 investment within 50 months!

An actual trading experiment will be described using these principles which produced an 8.9% yield per transaction – every 9.7 days. Such a yield, if continued, compounds $10,000 to $1,000,000 in 15 months. Such results can be attained in the market if effort, knowledge, and psychological barriers are overcome.

Article Appendix

Compound Interest Calculations

Ref: https://www.calculatorsoup.com

Calculate: Total P+I (A) Using the formula A = P(1 + r/n)^(nt)

• Principal (P): $1193
• Annual Rate (R): 8053.32%
• Compound (n): Daily (360/Yr)
• Time (t in years): 22 days / 365.25 = 0.0602327
• Answer: A = $95,555.26

Extrapolating to $1,000,000: The total amount accrued, principal plus interest, with compound interest on a principal of $1,193 at a rate of 8053.32% per year compounded over 0.0924987015 years is A = $1,000,000 (~33.78 days).