Search results

Suppose we trade from 30 to 80 (for 50 years) and suppose we have initial cash of 100K (or 500K)

Most did not attain the cash as above, so most likely there is NO logic with daily 1.8% compounded. At least no one(family) did it, for the last 400 years. Furthermore, I am curious Rothchild's family annual historical return for the last 400 years.

1.8% compounding over 220 days? 1.018^220 = 50.64204 implies your seed of 100K to become 5000K roughly 1 year. Quite possibly his asset will be the most rich man in the world after 60 years(from 30 to 90), by 50^60.

What do you mean 20%? Probably your total(lifetime) PnL after tax is, for example, 800K and total win before tax is 1000K. Does this case explain your 20%? If not, please give me an example. PS) Of course this example is same as 400K (after commission and 1040 tax) and 500K too...

I agree banker need equal time, for 10K customer and 1000K customer. Likewise, we (traders) pay same time and risk to run account with 10K and 1000K. Thanks for easy writing for me whose English is below average. PS) If we run and expect 10% with 10K account, then we should expect annual 10%...

Santa / I believe in capitalism most is done by ratio (annual percent), instead of amount. You bring 1000K to bank for annual 1%-return saving. But if you bring 10K to bank and ask "this is small amount so need annual 20% return", then banker will say "Suckers go to other bank".

Recall that stock market was running for the last 400 years at Netherlands. If there was any SINGLE trading logic with consistent 20% compounded, then he(his grandson) now has all the asset in the world, by 1.2^400 >= world population. So empirically there was NO trading logic with 20% for 400...

Personally, I think there is ALMOST NO trader with annual 20%. I hope to be a trader with consistent annual 10% compounded. (after tax+comm) Furthermore, ALL of my return curve is HOPEFULLY between 8% and 12% ALWAYS. / No more. PS) This is better (stable) than curve between 7% and 13%.

Is there any trader who attains annual 20% compounded after tax? Raise your hand, please. For sufficiently long time, one should make 1.2^20 = 38.3376 times for 20 years, and 1.2^50 = 9100.438 times from 30 to 80. For example, with a seed of 10K (100K) at 30, he should have 9100*10K=91M...

For example, Sharpe 1 is as follows....? Assume one start with 100K of cash and win 10K for one year(30K for three year), and his return curve exhibits as much as 10K in stardard deviation. Is it true? If not, appreciated to correct for me.

Where would I find precise def and reference for the Sharpe 1, 2, 3+?

It is true, for most (95%) trader who is a loser eventually. In case there is TAX and COMMISSION, 95% is a loser in most countries.

QUIZ) How about starting with 100K and 20%?

If OP is 24 yo, then you have roughly 60 years of opportunity, until 84. Suppose you have 10K of cash , then 1) with annual 5% compounded, 10*1.05^60 = 186.7919K is expected. 2) with annual 10% compounded, 10*1.1^60 = 3044.816K is expected. If you have saving of 100K, then 1) with annual 5%...

You missed total commission and tax. Please specify them. Quite possibly you are before elelementary school, still far away from high school. Also if you have done backtest for 1 and 1/2 years, then easy to extend it to 10 years (only computing hours more)

I agree this totally. 1)Design + 2)Test) + 3)Make System. Stock market is (probably) ONLY market which keep the old data for 20 years. We can get data (20 years) to backtest and find a profitable trading logic (after tax).

20 years seems to be enough long data, for personal trading logic. Let us assume you started with a seed of 100 unit (such as 10K, 100K or 1000K does not matter) Overall, 1) if you can say annual 10 percent compounded, then you account should have 100*1.1^20 = 672.75 units 2) if you annual 20...

Quite possibly, compounding outperforms savings with most 6-figure salary. The longer (such as 50 years term from 30 to 80), the better. For example, the high salary as President like Obama and Trump underperforms long-time compounding. Instead being President for 4 or 8 years, keep 12% or...

Please note that 1.12^6=1.973823=2 and 1.2^4=2.0736=2 If someone tell me that "My asset increase 16=2^4 times in the last 24 years" and "Mine is 32=2^6 times now in the last 24 years" respectively, then I can tell you "You spent 24 years with annual 12% compounded" and "You spent 24 years...

On the other hands, what is major rate (50% or 25% below) in current population? (My English is short. ) I mean Rothschild, for example, takes half(or quarter?) of ALL THE WORLD ASSET.