Sigma Base Hits Strategy Simplified
Sigma Base Hits Strategy Simplified
The Sigma Base Hits Strategy is all about making small, consistent profits that add up over time to create substantial earnings. Think of it like hitting singles in baseball instead of swinging for home runs. This approach focuses on achieving modest daily gains across multiple trading accounts, which can lead to significant monthly income when combined.
How It Works Without the Math
1. Use Multiple Trading Accounts
Leverage Quantity: Instead of relying on one account to make big profits, you use multiple accounts to make small profits.
Example: If a prop firm allows you to have 20 accounts, you utilize all 20.
2. Set Small Daily Profit Goals
Aim for Modest Wins: Decide on a small, achievable profit target for each account per day.
Example: Aim to make $250 per day on each account.
3. Consistency Over Time
Daily Routine: Focus on hitting your small profit target every trading day.
Weekly Earnings: Multiply your daily profit by the number of trading days in a week.
Example: $250 per day x 5 days = $1,250 per account per week.
4. Multiply Across Accounts
Total Weekly Profit: Multiply the weekly profit per account by the total number of accounts.
Example: $1,250 per account x 20 accounts = $25,000 per week.
5. Monthly Income Potential
Total Monthly Profit: Multiply the total weekly profit by the number of weeks in a month.
Example: $25,000 per week x 4 weeks = $100,000 per month.
Step-by-Step Guide
Step 1: Choose Your Account Size
Select Accounts Offered by Prop Firms: Prop trading firms offer various account sizes (e.g., $50K, $100K).
Consider Profit Targets: Larger accounts may have higher profit targets to pass evaluations.
Step 2: Determine Your Daily Profit Target
Set a Realistic Goal: Decide on a small, manageable profit to make each day per account.
Example for $50K Accounts: Aim for $250 profit per day per account.
Step 3: Understand Your Trading Instrument
Know the Value Per Movement: For the instrument you trade (e.g., Nasdaq futures), know how much you earn per point.
Example: On the Nasdaq E-mini (NQ), 1 point = $20 with one contract.
Step 4: Calculate the Points Needed
Determine Points to Hit Daily Target: Divide your daily profit target by the value per point.
Example: $250 daily target ÷ $20 per point = 12.5 points needed per day.
Step 5: Use Automation Tools
Automate Trading Strategies: Utilize trading systems that can execute trades and manage multiple accounts simultaneously.
Cash Exit Feature: Set up your system to automatically close trades once the daily profit target is reached.
Step 6: Consistently Execute the Plan
Stick to the Plan: Every trading day, aim for your small profit target on each account.
Avoid Overtrading: Once the target is reached, stop trading for the day to lock in profits.
Why This Works
Reduces Risk: Smaller profit targets mean you're not taking big risks to achieve your goals.
Psychological Benefits: Hitting daily targets can boost confidence and reduce stress.
Compounding Effect: Small profits across multiple accounts add up to significant income.
Example Summary
Daily Profit per Account: $250
Number of Accounts: 20
Total Daily Profit: $250 x 20 = $5,000
Weekly Profit (5 days): $5,000 x 5 = $25,000
Monthly Profit (4 weeks): $25,000 x 4 = $100,000
Adjusting the Strategy
Different Account Sizes: If you choose larger accounts, you can adjust your daily profit targets accordingly.
Example with $100K Accounts:
Daily Profit per Account: $500
Total Daily Profit with 20 Accounts: $500 x 20 = $10,000
Trading Micro Contracts: If using smaller contracts (micros), adjust the points needed since they have a smaller value per point.
Key Points to Remember
Consistency is Key: The strategy relies on making small profits consistently, not on big, infrequent wins.
Manage Risk Carefully: Even with small targets, always use proper risk management to protect your capital.
Automation Helps: Using automated systems can make it easier to manage multiple accounts and stick to your plan.
Stay Disciplined: Avoid the temptation to deviate from your daily targets; discipline is crucial for long-term success.
Final Thoughts
The Sigma Base Hits Strategy simplifies trading by focusing on achievable daily goals across multiple accounts. By aiming for small, consistent wins and leveraging the power of compounding, you can potentially generate significant income over time without the need for complex mathematics or high-risk trading strategies.
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