1% profit per day

Originally posted by dotslashfuture
the one thing that nobody ever talks about is the losing days. Denial ain't just a river in egypt.
More...


That's reality.


Lojze
 
I think that most Specialist firms make something around 90% a year on their capital. They seem to have a pretty good edge (that they pay about $1million to have), and are happy with that.

Brandon
 
Averaging 1%/day over a year or two is no big deal in the futures, provided you catch a good market. Hanging onto that money is the hard part. The style that made it in a good market will destroy you in a bad one.

Someone also made a very accurate observation, namely that you will make the majority of that money on 20-25 days. The rest of the time you will basically be breaking even.
 
http://www.elitetrader.com/vb/showthread.php?s=&threadid=7149&perpage=6&pagenumber=10

Here is a repost of a post I wrote on basically this same topic....

BTW % return is so easy to distort... I did 10% in my futures account today... Woo freaking hoo. I risked about 3% It's always amount risked vs. amount gained that is important.
Which is why I use risk "units" to track my room trades...

-Bo


Here is something to ponder....

This is a quote from the Ed Seykota interview in the “market wizards” book....

“During this period the accounts that Seykota managed have witnessed an absolutely astounding rate of return. For example, as of mid 1988 one of his customer accounts which started with $5,000 in 1972 was up over 250,000%....I know of no other trader who has matched this track record over the same length of time.”

Let’s break this down. 250,000% on 5k is $12,500,000. If you take the 17 years between ‘72 and ‘88, this gives you 192 trading months. Take this to a compound interest calculator, and you will find that a 4.2 monthly return (50.4%/year)on $5,000 will return $13,476,343 over this period.

Next...

Paul Tudor Jones....

“He launched the “Tudor futures fund” in sept 1984, with 1.5 mil under mgnmt. At the end of October 1988each $1,000 invested in the fund was worth 17,482"

4 years and one month gives us 49 trading months... $1,000 compounded with a 6% monthly rate of return would yield $17,378 for this period.

So here are two of the most successful traders in a generation, and their avg gain is under 10% a month! I have seen a number of traders in my room who could consistently bring in 5% a month fail because they desperately tried to make 20% In this business CONSISTENCY is the key to the big bucks, not speed. Slow and steady wins the race

Good Luck and Good Trading!

-Bo Yoder
More...
 
Originally posted by T/A_Bo
Here is a repost of a post I wrote on basically this same topic....
.....
Which is why I use risk "units" to track my room trades...

-Bo
More...
Excellent!
:) RS7
 
Originally posted by nitro


Down -$250 today.

nitro
More...

What? You didn't make that easy 1% of your account? What's wrong with you? Maybe you're just wasting your time trading. nitro.

Disclosure: Long sarcasm
 
Originally posted by m22au


What? You didn't make that easy 1% of your account? What's wrong with you? Maybe you're just wasting your time trading. nitro.

Disclosure: Long sarcasm
More...

:)

I lost today because I entered unfamiliar territorry full force. Well, I got creamed (in fact, I was down almost a K at one point.) Looking back, I had three good trades to make today and that is all I should have taken (which is a ridicoulously small number for me)

Honestly, these days where the market opens up 200 points and continues to rally from there, with the spoos clinging to the high for hours, well, I can do without them. Once the spoos left the "safety" of the highs, I had all good trades...(too little too late.)

nitro
 
Originally posted by nitro


:)

I lost today because I entered unfamiliar territorry full force. Well, I got creamed (in fact, I was down almost a K at one point.) Looking back, I had three good trades to make today and that is all I should have taken (which is a ridicoulously small number for me)

Honestly, these days where the market opens up 200 points and continues to rally from there, with the spoos clinging to the high for hours, well, I can do without them. Once the spoos left the safety of the highs, I had all good trades...

nitro
More...

I'm with you Nitro :D
 
You must log in or register to reply here.
Back
Top