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The Million Dollar Experiment

Proving System Effectiveness


Ideas and frameworks are useful, but ultimately they need to prove themselves in the real world. The Million Dollar Experiment is a five-year test of The 3-Engine Wealth System and The Virtual Investing Organization in practice. Starting with a defined amount of capital, the project documents the process of building and operating the system in real markets - tracking performance, adjustments, and lessons learned. By sharing the results openly, the experiment reveals how this systematic approach to investing performs over time.

Ideas Are Just Ideas - Until We Can Prove They Work


Some time ago, we were given a challenge: turn a $5k/month cash flow into a liveable income stream and a substantial nest egg - and do it in a reasonable period of time. Thus was born The Investing Project, and its inaugural undertaking: The Million Dollar Experiment.

We surmised that if we took $5k/month for 12 months ($60k total), split it among the 3 engines, and achieved 3 key levels of growth, we could turn that $60k into $1 million cash, and an ongoing $20k/month income - within 5 years. Sounds ambitious, right? For sure! But, what are those key foundational levels of growth that would make this possible?

  1. For trading, we would need to be able to take an initial $3000 account, and risking no more than $75 per trade, achieve a net return of $249 in a month. We do this quite often trading just 2 Micro-ES futures contracts, so this seems reasonable. In the abstract, that's risking 2.5% or less per trade, with a target monthly return of 8.3%. We would need to maintain these proportions as the account value scaled up each month.

  2. For investing, we would need to follow a systematic approach such as the Wheel Strategy where we would sell cash-secured put options on a stock we'd like to own, and if assigned the shares, sell covered call options on the stock until it's called away. We've been doing this quite regularly, averaging 2-4% per month. Using a conservative 1.5% account growth per month for the experiment also seems reasonable.

    The main drawback to the Wheel Strategy is being "stuck" with stocks when the market corrects. This is why trading only great companies and having consistent new cash flow from the Income Engine is so important: it enables dollar-cost averaging - buying more shares when the market is down, for higher profit when these great companies recover.

  3. For speculating, we would plan to adopt a "venture capital" approach, funding each opportunity with a consistent dollar amount, expecting 1 or 2 to do extremely well, 1 or 2 to go to zero, and the rest to be somewhere in between. An aggregate 20% annual return would be great. Since it's so hard to project this engine's returns, we've made sure it won't impact the final result of The Million Dollar Experiment.

So it is with these key levels of return that we mapped out the plan for The Million Dollar Experiment, including the projected growth runway for the Income Engine, Growth Engine, and Accumulation Engine. And, it is against this plan that we report progress on a weekly basis on The Investing Project YouTube channel.

Download the Plan And Blueprint For The Million Dollar Experiment