what is the maximum mathematically possible daily profit
- Thread starter AttoCEL
- Start date
49.5%
But why trade when you can invest in DeFi crypto, they promise gazillion % returns.
You haven't done the ... English language correctly. Apostrophe(s). Sorry it requires all of 2 keystrokes. Stop being lazy.
I'll play..
Define"possible" ??
And let's not go to never ever land where you catch every l-h swing multiple times per day.
Here's my first lesson free of charge...
Let's make believe you cracked open your piggy bank and bet your savings of 4 cents
Take 1.5 to the 252 power and tell me what your 4 cents grew to.
Then show me your rent bill of 600 bucks per month and explain why a guy who does 50 percent per day lives in someone's basement
Define"possible" ??
And let's not go to never ever land where you catch every l-h swing multiple times per day.
Here's my first lesson free of charge...
Let's make believe you cracked open your piggy bank and bet your savings of 4 cents
Take 1.5 to the 252 power and tell me what your 4 cents grew to.
Then show me your rent bill of 600 bucks per month and explain why a guy who does 50 percent per day lives in someone's basement
The theoretical maximum would be the sum total of the swings on any given day. On ES, this is routinely > 10 x the daily range.
We could actually turn this thread into a meaningful discussion as a few poster already did. So let's rephrase the OP question, since the world "mathematically" has no meaning. Instead of that he should have used either theoretically or practically, and those 2 are HUGELY different.
As Laissez pointed out one theoretical limitation could be the daily range. He says the max. is 10x the range. Let's leave it at that.
But what is the PRACTICALLY and consistently achievable max. return? Anybody can have a good day, that doesn't mean it can be expected day after day.
One another thing not mentioned in the original inquiry is the used instrument. Is it futures or options? Obviously it has to be a leveraged instrument because leverage is everything. Options will return more during the same movement but when you are wrong you also will lose more.
And one last thing not mentioned is just how much of the account is committed to each trade? This is a risk/reward question, and since no system is 100%, those few (or not so few) % when it doesn't work can quickly kill the account, thus shrinking long term expected returns.
The biggest returns I have seen where done by using (more like investing) in options for weeks/ months and going in heavily, holding it almost blindly. No day trading was done. I am not saying it is not possible, but practically more people made it big by holding for a longer period...
As Laissez pointed out one theoretical limitation could be the daily range. He says the max. is 10x the range. Let's leave it at that.
But what is the PRACTICALLY and consistently achievable max. return? Anybody can have a good day, that doesn't mean it can be expected day after day.
One another thing not mentioned in the original inquiry is the used instrument. Is it futures or options? Obviously it has to be a leveraged instrument because leverage is everything. Options will return more during the same movement but when you are wrong you also will lose more.
And one last thing not mentioned is just how much of the account is committed to each trade? This is a risk/reward question, and since no system is 100%, those few (or not so few) % when it doesn't work can quickly kill the account, thus shrinking long term expected returns.
The biggest returns I have seen where done by using (more like investing) in options for weeks/ months and going in heavily, holding it almost blindly. No day trading was done. I am not saying it is not possible, but practically more people made it big by holding for a longer period...
I'll have to admit, I am part of the uniformed(the 95%)...
But nonetheless, in sticking with the theme of the thread:
What is POSSIBLE is 500 times whatever we risk. So THEORETICALLY, what is possible assuming the original parameters is 500% per day.
You are clearly no real trader with this statement.
Shows us the math instead of asking us to do the math.
You make a statement, you should proof it.
I know your reaction already: you will not proof it as you can't and tell us not to be lazy and do the math.