500k with 50% return

[marketsurfer]

Quote from austinp:

Skilled traders can average +50% (or better) annually with $500k capital. That is absolutely possible, and more.

The key word in that statement above is <i>skilled</i>. "Skill" requires time, effort and experience to acquire. The mere possession of $500k or $5mil does not permit anyone to make even a 1% annual return before developing skills necessary to succeed. That is just the cold, hard truth about financial markets..........

this is simply not accurate and needs to be addressed.

a miniscule number of highly skilled traders rarely even average 15-20% per year for a period of time--without informational advantage of the kind simply unavailable to retail.

my associates have tested 100's of traders, with supposed edges, directly and found less than one percent could even be profitable over a short period of time.

consistent yearly averaging of 50% returns is a pipe dream, can it be done? sure. can it be done consistently year after year--no.

can 50% a year be achieved( by the retail trader) without risk of severe account damage? no.

surf

 

[riskarb]

Quote from marketsurfer:

this is simply not accurate and needs to be addressed.

a miniscule number of highly skilled traders rarely even average 15-20% per year for a period of time--without informational advantage of the kind simply unavailable to retail.

my associates have tested 100's of traders, with supposed edges, directly and found less than one percent could even be profitable over a short period of time.

consistent yearly averaging of 50% returns is a pipe dream, can it be done? sure. can it be done consistently year after year--no.

can 50% a year be achieved( by the retail trader) without risk of severe account damage? no.

surf

Surfer -- None of the trading in your journal implies any [caution: buzzword] informational advantage. It's not suprising when looking at some of the trades; long IBM/short Yen, GOOG 200 share-shorts, FX and crude outrights... Considering the fact that you don't use a PB; no access to color[information], order flow or haircut; how do you propose achieving success not seen in your journal? After all, you essentially trade retail.

 

[yoohoo]

Nzbryand, the market keeps changing. What worked for a time starts to underperform and then suffers prolonged drawdowns. I found out that the best way to control risk and achieve best performance was to work on signals below the 1 minute timeframe and try to roll it on to a bigger timeframe, thus I can catch a trend or trade choppy sideways moves for good profits. That doesn't float everyone's boat as it ties me to the screen but I like the rewards.

 

[CaptainObvious]

Since I don't believe the pimp has 500K to invest I'll give this thread some reality. With my 10K account I entered a 4 lot ES trade this morning at 9:30 @ 1304.00. Just exited at 10:28am @ 1305.00 Target was 1307, stop @ 1302. I exited prior to either stop being hit as I have a 1 hour time in trade rule. One hour and I'm out, regardless.
Sorry this won't give you much to dream about, but it is as real as it gets for me.

 

[gnome]

FYI...

I did a study years ago about "audited rates of return over 10 years".... from all disciplines listed... stocks, mutual funds, futures, options.

30% per year was top 0.1%. That is, "1/1000 money managers, >30%/year"

40% per year... you could count on your fingers.

 

[pattersb]

I'd hold out for 500% on 50k. When you consider compounding, much, much better long-term strat...

 

[gnome]

Quote from pattersb:

I'd hold out for 500% on 50k. When you consider compounding, much, much better long-term strat...

You won't find that on ET... maybe if you stay at a Holiday Inn Express overnight?

 

[riskarb]

Quote from gnome:

You won't find that on ET... maybe if you stay at a Holiday Inn Express overnight?

Not on ET, but I know of a guy in Europe that turned $10mm into >$100mm in under a year.

 

[gnome]

Quote from riskarb:

Not on ET, but I know of a guy in Europe that turned $10mm into >$100mm in under a year.

Every year there are a number of players who "play for big" and get away with it. Over 10 years, however, the high rollers almost without exception give it back. The same mind-set which facilitated the big gain also leads to big future losses.

One big year in the markets means NOTHING unless you quit with the profits... How many do that?

 

[riskarb]

Quote from gnome:

Every year there are a number of players who "play for big" and get away with it. Over 10 years, however, the high rollers almost without exception "give it back". The same mind-set which facilitated the big gain also leads to big future losses.

One big year in the markets means NOTHING unless you quit with the profits... How many do that?

Each year he intends on distributing the proceeds to fund-holders and starting fresh with $10mm. He's up $20mm more since the first annual disbursement. He has no need for more capital. There are issues of scale beyond $100mm.

Largest DD was $6mm when the fund was North of $60mm, <10%.