Consistent 5-10% monthly return possible?

J

James Daniel

Just a simple question to put out to those professionals who have been making significant gains for a decent time.

Is it possible for a day trader trading two currency pairs at 3% risk per trade to consistently maintain an average 5-10% per month? What are odds of a successful trader maintaining double this return?

I'm sure this has been asked before, but I am unable to locate any previous threads covering this.
 
why limit yourself to FX?

just find the right method or edge and markets
that move

also ... what size acct are you talking about?

a mini acct , one with 1K or 100K ?

:)
 
I started in December 2005 with $10k using gfxsa. I've been averaging between 5-10% since February 2006. I originally started trading futures at the beginning of 2004, but it wasn't for me, I enjoy trading the EURUSD and GBPUSD.

I was just wondering if it's possible to maintain these types of returns, and if so, how common it was for traders to maintain such returns over the long-run?
 
I reside in the UK and trade from 4am to 4pm EST (9am to 9pm GMT), although my trades don't really start until around 8am EST (1pm GMT) when the markets are the most volatile.

Do you trade FX and how do you find it?
 
5 to 10% is absolutely doable. My group does this with virtually zero drawdown too. Diversification is achieved through trading uncorrelated markets, so I agree with Seth, don't restrict yourself to just forex (and I'd trade CME futures before cash forex).

From my experience, the key to low low draw downs and consistant returns is trading a mechanical system. (not necessarily automated). I used to be in the school of believing a mechanical system doesn't exist. Turns out that none exist, until you find one :)

We trade around 5 or 6 trades per month, picking only the cream of the crop of setups.
 
I could adapt my strategy for the Dow (maybe SP500 and NDX, too), it's just getting used to their characteristics.

Is this what you mean?
 
I had a friend of mine who traded KOSPI. First year made 20% on about 100k and he thought he had it down pat. He was using a simple automated MA strategy (tunnel method), guess what, he got chopped up in two months (beginning '05) - 35% drawdown. I would talk to the guy and tell him to hang in their during that period (but inwardly I thought what a fool for sticking to a strategy that is not consistently working). As his losses grew, he stubbornly clung on (because his 4 year backtesting told him this period was an aberation and "sure to end" any day).

Point is that you need a consistent mindset and strategy, something that takes time to develop under a range of conditions, which might not neccessarily be what is going on since you started trading. You've got to survive long enough to figure out what is going on.

In other words do your homework, invest in a good data feed, take time out and learn more and more (learn everything) rather than jump in and eventually you will know when you are ready, you will have few questions in your mind.

Personally I feel the best approach with currencies is "mechanical discretionary" - not trading like a robot, but seeing a 3D market for what it really is, a place where the biggest sharks have "graduated" to from S&P etc. because of virtually unlimited position size. Do you think that such participants will consistently be on the other side of your position? When you do, go ahead.

Sincerely best of luck to you.
 
I want 5% a day. I have been working on that for a long, long time. I am working on my second million because I had to give up on the first one. After 22 years of education [I graduated the 11th grade twice] I think I can do it. Well, maybe I can't do it, I would be tremendously busy and I make typos under pressure, but I am thinking my computer can do it. Computer... boot your do nothig' self up, we gotta talk.
 
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