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

1. Small Wins Compound Over Time: Rather than aiming for large, infrequent gains, the strategy emphasizes regular, small profits that accumulate over time.

2. Leverage Multiple Accounts: By managing multiple trading accounts simultaneously, traders can amplify their total earnings while keeping individual account risk low.

3. Automated Trading Systems: Utilizing automated systems and platforms allows for efficient execution, consistency, and the ability to manage multiple accounts with ease.

4. 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:

1. Set Up Accounts:

   • Acquire 20 funded accounts from Apex Trader Funding at $50,000 each.

2. Define Trading Strategy:

   • Trade the NQ E-mini futures contract.

   • Aim for 12.5 points profit per day per account.

3. 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.

4. 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.

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.

Sigma Base Hits Strategy Examples with Contract Details

The Sigma Base Hits Strategy focuses on achieving small, consistent profits across multiple trading accounts, which compound over time to generate significant earnings. This strategy can be applied across various proprietary trading firms (prop firms) and account sizes.

In this updated version, we'll include the number of contracts of NQ1 (Nasdaq 100 futures), specifying whether they are Micro E-mini (MNQ) or E-mini (NQ) contracts, in our examples and tables.

Table of Contents

• Key Variables

• Example 1: Apex Trader Funding

• Example 2: MyFundedFutures.com

• Example 3: Take Profit Trader

• Example 4: TickTickTrader

• Example 5: Belunox

• Summary Table

• Notes and Considerations

• Conclusion

Key Variables

Before diving into the examples, let's define the key variables used in the tables:

• Prop Firm: The proprietary trading firm offering funded accounts.

• Account Size: The capital amount provided per account by the prop firm.

• Number of Accounts: Total trading accounts used simultaneously.

• Daily Profit Target per Account: The modest profit goal set for each account daily.

• Total Daily Profit: Cumulative daily profit across all accounts.

• Total Monthly Profit: Cumulative profit over a month (assumed 20 trading days).

• Points Needed per Day per Account: The number of points required on a trading instrument to reach the daily profit target.

• Trading Instrument: The financial instrument traded (e.g., Nasdaq futures).

• Value per Point: Monetary value per point movement of the trading instrument.

• Contracts Traded per Account: Number of contracts traded per account.

• Contract Type: Whether the contracts are E-mini or Micro E-mini.

Example 1: Apex Trader Funding

Scenario

• Prop Firm: Apex Trader Funding

• Account Size: $50,000

• Number of Accounts: 20

• Daily Profit Target per Account: $250

• Trading Instrument: Nasdaq 100 E-mini Futures (NQ)

• Value per Point: $20 (for NQ E-mini)

• Contracts Traded per Account: 1

• Contract Type: E-mini

Calculations

1. Points Needed per Day per Account

   Points Needed=Daily Profit Target per AccountValue per Point×Contracts Traded per Account=$250$20×1=12.5 points\text{Points Needed} = \frac{\text{Daily Profit Target per Account}}{\text{Value per Point} \times \text{Contracts Traded per Account}} = \frac{\$250}{\$20 \times 1} = 12.5 \text{ points}Points Needed=Value per Point×Contracts Traded per AccountDaily Profit Target per Account​=$20×1$250​=12.5 points

2. Total Daily Profit

   Total Daily Profit=Daily Profit Target per Account×Number of Accounts=$250×20=$5,000\text{Total Daily Profit} = \text{Daily Profit Target per Account} \times \text{Number of Accounts} = \$250 \times 20 = \$5,000Total Daily Profit=Daily Profit Target per Account×Number of Accounts=$250×20=$5,000

3. Total Monthly Profit

   Total Monthly Profit=Total Daily Profit×20 trading days=$5,000×20=$100,000\text{Total Monthly Profit} = \text{Total Daily Profit} \times 20 \text{ trading days} = \$5,000 \times 20 = \$100,000Total Monthly Profit=Total Daily Profit×20 trading days=$5,000×20=$100,000

Table

Example 2: MyFundedFutures.com

Scenario

• Prop Firm: MyFundedFutures.com

• Account Size: $100,000

• Number of Accounts: 10

• Daily Profit Target per Account: $500

• Trading Instrument: Nasdaq 100 Micro E-mini Futures (MNQ)

• Value per Point: $2 (for MNQ Micro E-mini)

• Contracts Traded per Account: 25

• Contract Type: Micro E-mini

Calculations

1. Points Needed per Day per Account

   Total Value per Point=Value per Point×Contracts Traded=$2×25=$50\text{Total Value per Point} = \text{Value per Point} \times \text{Contracts Traded} = \$2 \times 25 = \$50Total Value per Point=Value per Point×Contracts Traded=$2×25=$50 Points Needed=$500$50=10 points\text{Points Needed} = \frac{\$500}{\$50} = 10 \text{ points}Points Needed=$50$500​=10 points

2. Total Daily Profit

   $500×10=$5,000\$500 \times 10 = \$5,000$500×10=$5,000

3. Total Monthly Profit

   $5,000×20=$100,000\$5,000 \times 20 = \$100,000$5,000×20=$100,000

Table

Example 3: Take Profit Trader

Scenario

• Prop Firm: Take Profit Trader

• Account Size: $75,000

• Number of Accounts: 5

• Daily Profit Target per Account: $300

• Trading Instrument: Nasdaq 100 E-mini Futures (NQ)

• Value per Point: $20 (for NQ E-mini)

• Contracts Traded per Account: 1

• Contract Type: E-mini

1. Points Needed per Day per Account

   Points Needed=$300$20×1=15 points\text{Points Needed} = \frac{\$300}{\$20 \times 1} = 15 \text{ points}Points Needed=$20×1$300​=15 points

2. Total Daily Profit

   $300×5=$1,500\$300 \times 5 = \$1,500$300×5=$1,500

3. Total Monthly Profit

   $1,500×20=$30,000\$1,500 \times 20 = \$30,000$1,500×20=$30,000

Table

Example 4: TickTickTrader

Scenario

• Prop Firm: TickTickTrader

• Account Size: $250,000 (Zenith Direct Account)

• Number of Accounts: 5

• Daily Profit Target per Account: $500

• Trading Instrument: Nasdaq 100 Micro E-mini Futures (MNQ)

• Value per Point: $2 (for MNQ Micro E-mini)

• Contracts Traded per Account: 50

• Contract Type: Micro E-mini

Calculations

1. Points Needed per Day per Account

   Points Needed=$500$100=5 points\text{Points Needed} = \frac{\$500}{\$100} = 5 \text{ points}Points Needed=$100$500​=5 points

2. Total Daily Profit

   $500×5=$2,500\$500 \times 5 = \$2,500$500×5=$2,500

3. Total Monthly Profit

   $2,500×20=$50,000\$2,500 \times 20 = \$50,000$2,500×20=$50,000

Table

Example 5: Belunox

Scenario

• Prop Firm: Belunox

• Account Size: $25,000

• Number of Accounts: 10

• Daily Profit Target per Account: $150

• Trading Instrument: Nasdaq 100 Micro E-mini Futures (MNQ)

• Value per Point: $2 (for MNQ Micro E-mini)

• Contracts Traded per Account: 5

• Contract Type: Micro E-mini

Calculations

1. Total Value per Point

   $2×5=$10\$2 \times 5 = \$10$2×5=$10

2. Points Needed per Day per Account

   Points Needed=$150$10=15 points\text{Points Needed} = \frac{\$150}{\$10} = 15 \text{ points}Points Needed=$10$150​=15 points

3. Total Daily Profit

   $150×10=$1,500\$150 \times 10 = \$1,500$150×10=$1,500

4. Total Monthly Profit

   $1,500×20=$30,000\$1,500 \times 20 = \$30,000$1,500×20=$30,000

Table

Summary Table

Below is a consolidated table summarizing the examples above:

Notes and Considerations

• Contract Selection: Choose between E-mini (NQ) and Micro E-mini (MNQ) contracts based on account size, risk tolerance, and prop firm rules.

  • E-mini Contracts (NQ): Larger contract size, higher value per point ($20 per point), suitable for larger accounts.

  • Micro E-mini Contracts (MNQ): Smaller contract size, lower value per point ($2 per point), allowing for finer position sizing and lower risk per trade.

• Adjusting Contracts Traded: The number of contracts can be adjusted to match the daily profit target while staying within the prop firm's maximum contract limits.

• Prop Firm Rules: Always ensure compliance with each firm's specific trading rules, including maximum drawdowns, daily loss limits, and prohibited trading times.

• Risk Management: Proper risk management is crucial. Even with small daily targets, unexpected market movements can occur.

• Automation Tools: Utilizing automated trading systems can help manage multiple accounts efficiently and consistently execute the strategy.

• Market Conditions: Be aware that market volatility can affect the number of points needed to reach profit targets.

Conclusion

By including the number of contracts and specifying whether they are Micro E-mini (MNQ) or E-mini (NQ), the Sigma Base Hits Strategy can be effectively tailored to different prop firms and account sizes. Focusing on small, consistent daily profits across multiple accounts can potentially lead to significant monthly income.

Key Takeaways:

• Customize Your Strategy: Adjust the number of contracts and contract types to suit your trading goals and the prop firm's rules.

• Leverage Multiple Accounts: Managing multiple accounts amplifies the impact of small daily profits.

• Stay Disciplined: Consistency and adherence to your daily profit targets are essential for success.

Next Steps:

1. Select a Prop Firm and Account Size: Choose the firm and account size that align with your trading goals.

2. Decide on Contract Type and Quantity: Determine whether to trade E-mini or Micro E-mini contracts and how many per account.

3. Set Your Daily Profit Target: Decide on a realistic daily profit target per account.

4. Plan Your Trades: Calculate the points needed per day based on your chosen contracts.

5. Implement Automation: Use trading platforms and tools to manage trades across multiple accounts efficiently.

6. Monitor Performance: Regularly review your results and adjust as necessary to stay on track.