%10-40 a month with a small acccount.

Wouldn't it be nice if every book smart guy could figure out the market?



I'll continue with the capital available.
I personally wouldn't try anything until you've backtested and ran it across your personal simulations.
There are guys who make a million + a year to do that, what do you offer?
 
volente_00 said:
Return on capital ?
Or returned on investment value ?

Assuming 1 ES contract

Trader makes $13,000 profit in a year
Using $500 day trade margin

What is their return in your eyes?

$13,000 profit on $500 ?

Or $13,000 profit on a contract valued at $123,900 ?
More...

Margin amount is not basis. The example has at least 1 glaring hole...
Loss can exceed the initial margin amount, even by multiples of, day-trade or not does not matter. Furthermore, what of the trader who does not have access to or does not employ day-trade margin amounts? Would that trader have a different "return" entering and exiting the exact same trade, at the exact same "prices"?

ROC requires the account value. Using a correct leverage calculation, which considers the account value, can be used to normalize a risk-adjusted "return", applicable for all margin values. Barring that, the contract value is the more accurate and appropriate variable.
 
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