Pinneal Assets: The Business Plan

Discover the inspiring story of Pinneal Assets, a trader starting with $300 and a dream of financial freedom. Learn about their trading plan, risk management strategy, and scaling goals. Follow their journey to success in the trading world.

Starting With $300 ...

You know the story - Dad showed up with only the clothes on his back and a dream. Now look at this empire that he's created. What a great story. There are always other costs that aren't considered though, like it wasn't truly just a static $300 that got the ball rolling. The name of the game is cash flow.

I'll be starting with $300 in a trading account, but other expenses have already been spent - $1,500 on a lifetime ninjatrader license, $10,000+ on indicators and training, $2,000 on failed prop firm ventures that my greed always got the best of me with, and $5,000 or so on psychology courses/coaches. All said, I'm sure that I've put over $20,000 into my trading career already. The time for results is now, and it starts with a humble $300.. 

The Trading Plan

Products: Micro Equities and Commodities

Strategy: Liquidity grabs (stop runs/L2/spring trades) in the direction of the trend as defined by market structure. Time signals or major levels at these grabs just sweeten the pot and add to the confirmation of the signal. Once back within the structure, move to breakeven+2 for commission coverage.

Risk: The profit/loss plan is a simple 2:1 risk-to-reward on the day.

The daily profit target will be $40 and the daily loss limit is $20. Both limits are set on the broker side such that I'll be auto-liquidated in my positions when either event occurs - a nifty new feature of NT brokerage accounts. This serves two purposes - 

1. Guarantees the Win - I have developed bad habits in the past of making huge profits on a day only to end the day in the negative (dramatically in the negative at that). Avoiding that whiplash and drama with my trading is #1. Having a forced shutdown at $40 profits is going to be a tough pill to swallow when those dramatic running days happen, but it's an essential piece of the consistency puzzle that I envision.
   • My primary goal is to trade every day, above all else. I'll scale with size and not with more trading. 
2. Cuts the Losses - $20 lost on a day essentially gives me 10 losing days in a row before I go bust. Ten losing days in a row is a bad streak and the odds are in my favor that I won't lose for 10 straight days. Throw a winning day in there and I just gave myself another two days to trade. Nice!
   • Again, the goal here is survival and to be able to trade every day and experience the market through all its conditions.

Profits will be withdrawn on a weekly rolling basis until the initial $300 is covered and all money in the investment account is just profits. 

Scaling:  At the following account sizes, contracts will be increased.

• $600 - 2 contracts - T: $80, L: $40
• $900 - 3 contracts - T: $120, L: $60
• $1,200 - 4 contracts - T: $160, L: $80
• $1,500 - 5 contracts - T: $200, L: $100

Once the daily profit target is $200, I'll move back into the prop space with Apex Trader Funding on a $50K account. The drawdown on the $50K account ($2,500) will mirror my live risk tolerance and I'll continue scaling there at a rate of starting one new account each week. After 20 weeks, I would have 20 accounts, each with a profit target of $400 and a daily loss of $200 trading 1 micro contract.

END GAME (for futures) - Across all 20 accounts, have the potential to earn $8,000.00 or lose $4,000 per day. No new indicators, no new strategies, no new anything (other than joining a trade group potentially, CompassFX). A weekly high has a potential of $40,000.00.  At this point, I'll venture into longer-term positions and portfolio diversifications.

Next Step

Follow the plan, consistently. That's where this blog and website will come into play. I'll post weekly game plans to start the week, daily reads on the market, daily reviews of my market activity, and weekly reviews of my market activity.

This feels like a wonderful recipe for great things!

Looking forward to 2024 to get it started!