Average Pips move profit per day in FX Markets

I have been working for one year in a financial company.

We do have a fund of fund with forex managers. In our fact sheet we say that we have the best forex managers you can find in the market.

In 2004 the fund was down 7%. We have tested approximately 20 managers during one year and a half.

The best manager did 10% with a 10 mio allocation. So he did 1 mio in one year which is approximately 83 pips a month!!!

Most of his gain were made trough options ; 1.7 mio in option and -700,000 in spot.

I myself think one can do it (300 pips a month), I am still looking for the holy grail.

If you can see it from the inside, you'll see that the finance world looks like this : blind speculators selling products to blind clients.

Looking at Soros results, I think he must be proud to have amassed millions, then billions while the majority of the other players where loosing money.
 
Quote from LoosenUp:

300 pips a month on average means a yearly gain of about 3600 pips. That would be about $36,000 gain per annum per 100k contract. My question is how much capital do you allocate to trade one 100k contract? Assuming you use a leverage of 1:10, are you then expecting a consistent yearly average return of 360%? Even if you use a leverage of 1:5, your return will still be 180% per annum. Since FX is a very liquid market and it is possible to get the same result using substantial size, that will put you in the elitest of the elites.

I am interested in finding from the successful forex traders here what kind of returns that they think they can reasonably achieve, assuming a leverage of 1:10, i.e using 10k yo trade 1 100 k contract.
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I'm also interested in knowing the answer.

Would it be correct to say that the trader, achieving 360 pips yearly using 10K margin for a 100K contract (with a leverage of 1:10), may constantly use only (say) 10% of total capital (i.e. 100K) engaged in daily trading, therefore the annual returns should be 36% per total capital (probably nearly none of the hedge funds trading mainly FX could achieve this consistently), derived from a performance of 360% per contract? :confused:
 
Quote from OddTrader:

I'm also interested in knowing the answer.

Would it be correct to say that the trader, achieving 360 pips yearly using 10K margin for a 100K contract (with a leverage of 1:10), may constantly use only (say) 10% of total capital (i.e. 100K) engaged in daily trading, therefore the annual returns should be 36% per total capital (probably nearly none of the hedge funds trading mainly FX could achieve this consistently), derived from a performance of 360% per contract? :confused:
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Yes, this is correct. Though I don't know how you get the 360% per contract. If you mean 10k trading size = 1 contract, you are correct. Spot FX does not use contracts :)
 
Quote from TradingWise:

Yes, this is correct. Though I don't know how you get the 360% per contract. If you mean 10k trading size = 1 contract, you are correct. Spot FX does not use contracts :)
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Thanks. (A typo in my last post - The 360 pips yearly should be 3,600 pips yearly.)
 
How about the sizing issues below?

http://www.elitetrader.com/vb/showthread.php?s=&postid=699581#post699581
Quote from OldTrader:

I'd certainly be open to someone explaining to me how someone is going to make .60 points per minute each and every minute of the day when the average one minute bar might be .70-.80 points. Luck??? It's going to have to be something way beyond luck my friend.

Fortunately for the readers of this website, no one needs to make 240 points per day. A simple 5-10 per day will give most people all wealth they need or want, along with all the challenge they ever needed to accomplish it.

OldTrader
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What does avg range have anything to do with avg profit? 80 pip range also means you can lose 80 pips a day as well.

I don't understand why people obssess over average anything, the question makes absolutely zero sense at all.
 
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