Is it possible earn 20% a year swing trading stocks.

[xelite777]

oes not prove a record of consistency. But a return of 100% in any one year is still a great achievement.

No need to wait a year, with a 100:1 leverage (like in Forex) a trader can make 100% in a few seconds, after the Non-Farm Payroll or some other important financial report.

And then he could brag all about it at his local bar, between two cold Heineken.

But making that consistently, that's another story.

to double $1 every year for 20 years (for a grand total of $40),

Well, if you double a dollar every year for 20 years, you will end up with $1,048,576

 

[Commodity_Trader]

Are you saying you support the current regime?:eek:

not at all , every people here hate this stupid regime .i said revolution doesn't change anything .almost every revolution in history yields to another dictatorship !

 

[Commodity_Trader]

Not to sound argumentative, but I think I was the one that implied that 20% returns are possible, in response to your comment about Warren Buffett. In any case, no you don't need to send me your audited trading results. Though, 1 year of results does not prove a record of consistency. But a return of 100% in any one year is still a great achievement.

Bringing up compounding returns though makes the discussion a bit cloudy. Are you t was nonow referring to an average doubling of your initial investment? Because that is a different subject than what others are discussing. In this case, it is a simple math problem to see that to achieve this over n years, you only need a return (x) of:

x = (2*n)^(1/n) - 1

This means, for example, to double $1 every year for 20 years (for a grand total of $40), you only need an annual return of ~20%.

http://www.elitetrader.com/vb/attachment.php?attachmentid=146106&d=1399634365

this is equity curve of that trading account .it was achieved by at least 3 trades per day in all trading days of year and i turned less than 50k to 100k .i don't know what is consistency in your mind .a stock trader may have less than 100 trades per year .in my case trade numbers were about a thousand or so .if we scale it , it's like a stock trader who trades 10 years (10 * 100 ) with small drawdowns.
as i said before ,financial sanction against Iran stopped me to access that account .it was a good opportunity to reinforce and now i'm back in the game again.

 

[Satan's Helper]

1 NQ contract back test on tick data.

This is what winning looks like!

 

[xelite777]

1 NQ contract back test on tick data.

This is what winning looks like!

Sure, anything is possible with only 8 months of data and 300 trades.

Now run the backtest since the beginning of the NQ contract and see if you still get the same equity curve.

 

[Satan's Helper]

Actually that system is based on statistical data that works on just about everything. Any instriment no matter what the market. The numbers are consistent.

I could never trade it because it takes some large losses and has a 3.2k draw down. I am too much of a pussy!

 

[Satan's Helper]

Here is a longer back test.

20% can easily be done in a year and even a month if the account is small enough to get in and out of trades. Hedge funds are like a whale carcass that just dies. When they place a order every predator is feeding on them and that makes returns difficult.

 

[xelite777]

Here is a longer back test.

20% can easily be done in a year and even a month if the account is small enough to get in and out of trades. Hedge funds are like a whale carcass that just dies. When they place a order every predator is feeding on them and that makes returns difficult.

Are spread and commissions included in the test?

Please forget about making 20% a month consistently (892% compound return a year), this is pure utopia.

Here are the facts: if a trader can consistently make 2% a month, he is already a super trader!

 

[Satan's Helper]

No Spreads or Commissions. There is more then enough room for that! But like I said, I would never trade it. Actually that system is based on a single indicator I am thinking about selling. It is a whole new category of technical analysis.

As for returns. I have done over 50% in a mo and consistently do 1% per day net on a small account! I know a few other traders that do a lot better. The problem is you can't do it on a big account. I know this one guy who was a NYSE Specialist since the 1970's and he takes 250K and makes about a few million a year with it. But it is small stocks and once in a few years he blows that account out. But who cares as long as you know your risk capital is replaceable.

Big returns are easy with small accounts. But once you get a bit of money it becomes a lot harder.

 

[xelite777]

No Spreads or Commissions. .

Include spread and commissions and most seemingly winning systems (like yours) become losing systems, or mediocre at best. And if your indicator is working why do you want to sell it and kill the golden goose?