If you trade how much profit per year % considered good?

Discussion in 'Trading' started by stupidtrader, Oct 2, 2024.

  1. oshjdf

    oshjdf

    In general, 2x risk free rate pa and sharpe >= 1.

    The subtle difference between trading and investing is frequency/opportunity.

    In investing, your opportunity is only when you have money and invest it.

    In trading, you open the biggest % of balance/equity per trade according to risk of ruin calculation. The aim is to grow money fast at optimum level (without ruin). The trade frequency plays a huge role.
     
    #11     Oct 3, 2024
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  2. ironchef

    ironchef

    The $100K questions, for most of us amateur retails are:

    1. How do I get to $100K as quickly as possible?

    2. Once I have $100K, if I can return better than SPY, how many years do I need before I can quit my day job and trade full time?

    3. Hope we are lucky enough to start during a raging bull market. Even for ETs, luck is a major factor.

    Most of us started with nothing. From nothing to $100K is very hard. After $100K the magic of compounding will get us there in a reasonable amount of time if we can do better than SPY.

    As for your OP, very few can do 5%-10% better CAGR than SPY over 20-30 years.
     
    #12     Oct 3, 2024
  3. Sekiyo

    Sekiyo

    10X
     
    #13     Oct 3, 2024
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  4. Good Morning MrMuppet,

    What does 50% p.a. mean please?

    Thank you,
     
    #14     Oct 3, 2024
  5. Good Morning Businessman,

    Where do I obtain a trading edge?

    Thank you
     
    #15     Oct 3, 2024
  6. Sekiyo

    Sekiyo

    You start the year with 2$ and finish it with 3$.
     
    #16     Oct 3, 2024
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  7. Sekiyo

    Sekiyo

    [​IMG]
     
    #17     Oct 3, 2024
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  8. Asking such a question suggests you are a noob. No worries, we all start out that way.

    In your early times/years, you likely won't make much... presuming you're profitable at all.

    As you get better, your gains can sky if you stay with it and develop.

    (Years ago, I thought 20%/year should be "par". I used to count the number of "40% gain years".... then I went on to counting only "100% +" gain years. Those are fewer... easier to keep track of. :))
     
    Last edited: Oct 3, 2024
    #18     Oct 3, 2024
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  9. Sekiyo

    Sekiyo

    Try a MonteCarlo simulation.

    Risk 2 to Win 3.
    You place 1 bet per day.
    Let’s say it’s a coin flip (50%).
    Risk 10% per bet (Kelly is 17%).

    IMG_1481.jpeg

    ES is biased upward,
    Daily range is about 65pts,
    Buy Open, SL -26pts & TP +39Pts.
     
    Last edited: Oct 3, 2024
    #19     Oct 3, 2024
  10. Darc

    Darc

    More than I can Earn elsewhere (all things considered) is mine.
     
    #20     Oct 3, 2024