2% daily compounded gives 5248% in a year

C

castor_t

I made an excel sheet with some calculations, here's what I found.

If you have an initial capital of 650$, and if you earn 2% consistently on a daily basis compounded for a year (200 trading days), your return will be 5248%.

$650 @ 1% daily - 732% - $4731
$650 @ 2% daily - 5248% - $33940

Of course, the main problem is to consistently earn and making up of losses the next day.
 
nitpicking maybe, but: assume 220 trading days per year. Assume you leave all the money in the account.

1.02 to the 220th power is ~77 on my HP15C calculator.
 
Quote from castor_t:

I made an excel sheet with some calculations, here's what I found.

If you have an initial capital of 650$, and if you earn 2% consistently on a daily basis compounded for a year (200 trading days), your return will be 5248%.

$650 @ 1% daily - 732% - $4731
$650 @ 2% daily - 5248% - $33940

Of course, the main problem is to consistently earn and making up of losses the next day.
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Jeepers, why settle for so little? Somebody was suggeting 6%/day was really easy to do. :D
 
Quote from castor_t:


If you have an initial capital of 650$, and if you earn 2% consistently on a daily basis compounded for a year (200 trading days), your return will be 5248%.
More...

Short-changing yourself... 365 days, -104 weekend days -7 officially closed holidays = 254 trading days.

Compound more!
 
Compounding is the key to riches.

You might be able to average 2% a day during the dot com bubble, or during the crash of 2008 etc.

But most other years you will be very lucky to average 0.5% a day.

Ofcourse you can always try and leverage up gains, but the risk of blowing up increases to.
 
Quote from southall:

Compounding is the key to riches.... most other years you will be very lucky to average 0.5% a day.
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That's only 254% annual return. Shoot, any trader worth his salt should do that standing on his head, right?

Let's see a show of hands... Who has averaged less than 254% per year? Come on, we're all friends here. You can admit it... we promise not to sneer too much.
 
I understand the saracastic comments, was just trying to make a point.... Only one useful comment so far though..

Quote from southall:

But most other years you will be very lucky to average 0.5% a day.
More...

Even at 0.5%, the return would be $1753 at 271%.
 
52 transactions and I'm only 12 % up for the year.. jeezes, I feel so small..

give up on all those big figures, the sooner the better :)
 
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