I use average 20% annual as a personal minimum target/goal for each year. Selected this as passive long term investing gives 10% annually and that is to slow to grow ones capital. If one start with $10,000 it will take decades to get somewhere (= reach $1 mil). With 20% annually one will double the account every 3.5 years, and that is even conservative and slow.
How much can a retail algo trader expect to earn?
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I use average 20% annual as a personal minimum target/goal for each year. Selected this as passive long term investing gives 10% annually and that is to slow to grow ones capital. If one start with $10,000 it will take decades to get somewhere (= reach $1 mil). With 20% annually one will double the account every 3.5 years, and that is even conservative and slow.
Well, at 10% you will double your account about every 7.2 years, at 20% every 3.6 years. It will still take decades to reach 1 million. You need to return 45% continuously compounded so you can a million under a decade from 10k, it's a pretty tall order
It really boils down to the relationship of risk to reward in your strategy. If you have a strategy that has very smooth returns, you can lever it up at will, so capital is mostly irrelevant.
What a stupif ...ucking question one day you trade 0.5 lots 20 trades next day 1 lots 30 trades next day 1.8 lots 25 trades how are you going too answer how much you make....There are some people soo stupid in this groups it is amazing didnt seem like they ever went too school at all...
Sharpe is just a ratio of your mean return to the standard deviation of your returns. Since you are probably trading market-neutral (most short term traders can make that assumption), you can ignore the interest rate.
Question...by "de-correlated" I assume you mean from beta ? And I totally agree, if you can add alpha in such an environment, well that is the key. ..and the difficult part !
For example, Sharpe 1 is as follows....?
Assume one start with 100K of cash and win 10K for one year(30K for three year), and his return curve exhibits as much as 10K in stardard deviation.
Is it true? If not, appreciated to correct for me.
3 posts and welcome to ignore
Is there any trader who attains annual 20% compounded after tax?
Raise your hand, please.
For sufficiently long time, one should make 1.2^20 = 38.3376 times for 20 years, and
1.2^50 = 9100.438 times from 30 to 80.
For example, with a seed of 10K (100K) at 30, he should have 9100*10K=91M (910M) at 80 to say annual 20% compounded.
PS) For him, there should be plenty of consistently-losing suckers (traders) in markets.
Raise your hand, please.
For sufficiently long time, one should make 1.2^20 = 38.3376 times for 20 years, and
1.2^50 = 9100.438 times from 30 to 80.
For example, with a seed of 10K (100K) at 30, he should have 9100*10K=91M (910M) at 80 to say annual 20% compounded.
PS) For him, there should be plenty of consistently-losing suckers (traders) in markets.