Sigma Base Hits Strategy
Sigma Base Hits Strategy
The Sigma Base Hits Strategy is an ideology centered around achieving consistent, small profits that compound over time to generate substantial earnings. Inspired by the concept of "base hits" in baseball, this approach focuses on making modest gains across multiple trading accounts, leveraging automation and disciplined risk management to maximize profitability.
Core Principles
Small Wins Compound Over Time: Rather than aiming for large, infrequent gains, the strategy emphasizes regular, small profits that accumulate over time.
Leverage Multiple Accounts: By managing multiple trading accounts simultaneously, traders can amplify their total earnings while keeping individual account risk low.
Automated Trading Systems: Utilizing automated systems and platforms allows for efficient execution, consistency, and the ability to manage multiple accounts with ease.
Disciplined Risk Management: Setting daily profit targets and employing tools like "cash exit" ensures that profits are secured and losses are minimized.
Implementation Steps
1. Determine Account Size
Choose an account size that aligns with your trading goals and capital availability. For example, using Apex Trader Funding:
Account Size Options: $50,000, $100,000, $200,000, etc.
Number of Accounts: Up to 20 accounts can be managed simultaneously.
2. Set Profit Targets
Define the profit target required to pass the evaluation or achieve your daily income goals.
Example Target: $250 profit per account per day.
3. Calculate Daily Profit Goals
Split the overall profit target by the number of trading days to determine daily goals.
Monthly Trading Days: Approximately 20 trading days per month.
Daily Profit Goal per Account: Total monthly target divided by 20.
4. Determine Trading Parameters
Calculate the number of points or ticks needed to reach the daily profit goal based on the instrument traded.
Instrument Example: Nasdaq 100 E-mini Futures (NQ).
Point Value: $20 per point per contract for NQ E-mini.
Daily Points Needed: For a $250 target, divide $250 by $20 = 12.5 points.
5. Utilize Automated Trading Systems
Implement automated trading strategies using platforms that support webhook alerts and copy trading.
Platform Integration: Use TradingView for alerts and connect via webhooks.
Copy Trading: Replicate trades across multiple accounts efficiently.
Cash Exit Feature: Employ the "cash exit" setting to automatically close trades once the desired profit is reached.
Practical Example
Scenario: Managing 20 Accounts with $50,000 Each
Total Accounts: 20
Account Size: $50,000
Daily Profit Target per Account: $250
Total Daily Profit Goal: $250 x 20 = $5,000
Total Monthly Profit Goal: $5,000 x 20 trading days = $100,000
Steps:
Set Up Accounts:
Acquire 20 funded accounts from Apex Trader Funding at $50,000 each.
Define Trading Strategy:
Trade the NQ E-mini futures contract.
Aim for 12.5 points profit per day per account.
Automate Trading:
Use TradingView to generate trade signals based on your strategy.
Connect TradingView to your trading platform using webhooks.
Enable the "Cash Exit" feature to automatically close positions once $250 profit is achieved per account.
Monitor and Adjust:
Keep an eye on market conditions and adjust the strategy as necessary.
Ensure all accounts are synchronized and the automated system is functioning correctly.
Outcome:
By consistently achieving the daily profit target:
Weekly Profit per Account: $250 x 5 days = $1,250
Weekly Total Profit Across Accounts: $1,250 x 20 = $25,000
Monthly Total Profit: $25,000 x 4 weeks = $100,000
Scaling the Strategy
The Sigma Base Hits Strategy is scalable:
Larger Account Sizes: Opt for $100,000 or $200,000 accounts to increase individual profit targets.
Adjust Daily Targets: With larger accounts, the daily profit target can be increased proportionally.
Manage Risk: Larger positions may carry more risk; ensure that risk management protocols are strictly followed.
Example with $100,000 Accounts:
Daily Profit Target per Account: $500
Points Needed on NQ E-mini: $500 / $20 = 25 points
Potential Monthly Profit Across 20 Accounts: $200,000
Key Benefits
Consistent Earnings: Focus on achievable daily goals to build steady income.
Risk Mitigation: Small targets reduce exposure and the likelihood of significant losses.
Efficiency Through Automation: Automated systems handle trade execution, allowing you to manage multiple accounts without being overwhelmed.
Flexibility: Adjust account sizes and targets based on your financial goals and risk tolerance.
Considerations
Market Conditions: Always account for market volatility and adjust strategies accordingly.
Costs and Fees: Be mindful of any fees associated with managing multiple accounts.
Compliance: Ensure all trading activities comply with the terms and conditions of the prop trading firms.
Conclusion
The Sigma Base Hits Strategy leverages the power of compounding small, consistent profits across multiple accounts to achieve substantial financial goals. By focusing on manageable daily targets and utilizing automation, traders can efficiently scale their earnings while maintaining disciplined risk management.
Next Steps:
Implement the Strategy: Set up your trading accounts and configure your automated systems.
Educate Your Team: Share this ideology with your students, ensuring they understand each component.
Monitor and Review: Regularly assess the strategy's performance and make adjustments as needed.
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