1% a day consistently: possible?

1% a day consistently, no down weeks: possible?

  • Yes

    Votes: 58 47.9%

  • No

    Votes: 63 52.1%
  • Total voters
    121
  • Poll closed .
Quote from stephencrowley:


Basically, I think my results are too good to be true..
More...
How do you know this?
That's why I asked my question about making 10-20% a day - nobody answered. Possibly the 1% figure you (hope you would) make now is only peanuts.
As some 'learned' people rambled along about statistics leaving behind a superficial fragrance of rigor, it might perhaps be useful to have some kind of an upper estimate for a 'consistently possible' average return per day.

nononsense
 
Quote from romik:

when i paper traded my strategy in S&P500 eminis i AVERAGED 20% a day, in real world it works out around 12.8%, mainly due to Tradestation's inability to execute market orders quickly, hopefully my daily average will raise once I switch my trading platform to a more appropriate one. Also, I must add that my strategy's approach is probably classed as "aggressive trading", suits me and works fine.
More...

futs don't move enough to give u the room to accumulate 2% gains, nevermind 20%
keep on kiddin' uself u'll go far indeed.
 
Quote from Bitstream:

futs don't move enough to give u the room to accumulate 2% gains, nevermind 20%
keep on kiddin' uself u'll go far indeed.
More...

Although you might be an expert you probably never heard about margins. In futures you trade on margins. So on a 500$ margin a 1 point move in the E-mini represents 50$ or 10%.
Check yourself how big the moves can be intraday.
 
Quote from spike500:

Although you might be an expert you probably never heard about margins. In futures you trade on margins. So on a 500$ margin a 1 point move in the E-mini represents 50$ or 10%.
Check yourself how big the moves can be intraday.
More...

I doubt he was talkin' about marginable trades, even tho its very much possible he'll jump on the thread to say exactly that: not the first noob that make such statements.
 
Look I can't not comment on all the above by saying that you can not get high yield on investment unless you are ready yo take risks, controlled risks. You also can not enter my type of trades if you are under capitalized. I remember the times when American business was SO interested in Russia back in 1990s and still is. Is that not risky? Automated trading perhaps can not reach high return levels, because it is an automated process, machines don't think they simply execute. I do not need a maching to tell me when and what to do. How can the machine know what's happening in the real world? I am a strong believer in the principle to keep it simple in trading, the more one involves a computer program to decide when to enter/exit trades is making a mistake in my opinion. When I look at my trading strategy I realize that there is no way to automate it and be perhaps profitable. In Russia, sorry I was born there, there is a saying "If you don't take risks, you won't be drinking champagne", as naive and childish that might sound as an approach to trading, please have a look at Forbes magazine, most in the lists are high risk takers. I can afford to take calculated risks, based on very strict stops, can you? And it is like religion, if you do not believe something exists, it does not mean that it doesn't.
 
Quote from mahras2:

How does my math suck?

24 trading days a month on average with 12% each day so:

1.12^24^6~12 million.

Edit: okay ~22 trading days for equities (I said 24 because I am in FX). So yes a dollar grows to $3Million+.

The three million dollar question is: Can I give you a dollar to manage? :D
More...

The logic of your math sucks and you have apparently no knowledge about the futures markets ( Romik talks about the ES).

To calculate the ending equity you need at least the following elements to make a realistic calculation:
-margin per contract
-maximum position that can be absorbed by the market
-starting capital

I will give 2 examples just to show that your calculation is based on simplicity and lack of knowledge about trading:

first example:
starting capital 5000 $
net profit per day 600$ ( equals 12 %)
maximum number of positions unlimited
margin per contract 1000$

We start trading 5 contracts, we trade 21 days.
You cannot simple compound at 12% a day because you need 500$ to add a new contract. This lowers the effect of compounding. The ending equity for the month will be 49640 $.


second example:
starting capital 100000 $
net profit per day 12000$ ( equals 12 %)
maximum number of positions unlimited
margin per contract 1000$

We start trading 100 contracts, we trade 21 days.
The last day we will theoretically trade 961 contracts. But the question is: how big can we grow before the position is too big to be executed in a normal way?
That is the point where ALL the compounding calculations go wrong. They all calculate simply by compounding without taking the limitations of real trading in account. That's how they want to proof that, at the disputed returns, you should own the whole world.

If Romik is smart he would stop posting about these things because all he can get is negative reactions and unbelief. I have been bashed also before, so i decided not to tell anything anymore. Keep the stupid stupid and the smart smart. And as the stupids always think they are smart, everybody will be happy.
 
Quote from Bitstream:

I doubt he was talkin' about marginable trades, even tho its very much possible he'll jump on the thread to say exactly that: not the first noob that make such statements.
More...

Futures are always traded on margin. Even the biggest idiot knows that you cannot take 20% a day in the S&P without leverage.
99.99% of the daily moves in the S&P are smaller than 20%.

Romik says that his 20% went to 12.8% due to bad execution. If that would be without leverage it would mean the execution took days. It is clear he meant margin trading.
 
You must log in or register to reply here.
Back
Top