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Updates on Minimum Order Size for Spot and Margin Trading Pairs

If you have a good strategy you can certainly grow capital more quickly than passive investing but there is an upper limit on how much capital you can put to work when day trading.

I created a quick model with the following parameters to demonstrate the growth of capital.

  • Starting capital - $100,000
  • Risk tolerance per trade - 0.005% of capital
  • Average reward for risk earned per week - 50 (I find this is a reasonable expected RR for my current day trading algorithm)

In that scenario, it takes 127 weeks to get to $3,000,000 but this does not factor in annual withdrawls for taxes.

Day trading has short hold periods which makes speed of entry important. I trade from the universe of US listed stocks, of which there are about 6 - 7 thousand that I run my algorithms on.

Of that group, only about 2,000 are liquid enough that I can buy a position of up to $100k without moving the stock too much and suffering a lot of slippage.

There are the ultra liquid stocks where it is easy to buy $1 million worth of stock in just a few seconds without moving the market.

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