what is the maximum mathematically possible daily profit

not sure how can know the max percent profit (employing leverage) without knowing how much the asset goes up...




assuming you can catch it all, what is the maximum daily profit percentage possible with 500:1 leverage. this is an excellent exercise to help new traders evolve and understand trading math better. it helps you compare your current system to whats technically possible, so you realize you have a long way to go and that progress is neverending. it helps in dissolving the limits our mind fearfully creates.

i welcome anyone to display their attempt at answering this question accurately. are we gonna smoke this banana
 
Assuming zero market impact, an answer can be computed after the fact using full orderbook data from an exchange. Market buy orders can be optimally matched with market sells to maximize profit of a theoretical market maker with zero latency, perfect foresight, and subject to a 500:1 leverage constraint. Because buys are matched 1:1 with sells, this strategy ends the day flat by construction and thus the result is a true "daily profit" as required.
 
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not sure how can know the max percent profit (employing leverage) without knowing how much the asset goes up...
or how much capital itself (dollar amount) is being deployed at 500 to 1?

500 X ? dollars X ? pipskies (forex I believe was mentioned).

But then to reeeeeeally maximize your gain you would need to buy the low tick on a big up day or ..... sell the high tick on a big down day like today. I hate all math except Geometry and P/L statements. ;):-

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Hes talking percentages,so dollar amount doesnt matter as we know we are trading 500:1...


or how much capital itself (dollar amount) is being deployed at 500 to 1?

500 X ? dollars X ? pipskies (forex I believe was mentioned).

But then to reeeeeeally maximize your gain you would need to buy the low tick on a big up day or ..... sell the high tick on a big down day like today. I hate all math except Geometry and P/L statements. ;):-

View attachment 281873
 
Hes talking percentages,so dollar amount doesnt matter as we know we are trading 500:1...
Well in forex you can have a micro account, a mini account, and a standard full size account.

Too little info - can't be done.

Percentage of fackin' what?

500x1 means $1000 deposit controls $500,000 of units of a particular currency. Then what?
 
Then what? As in then how do you come up with a percentage of sumtin if you don't know what the sumtin is?

Good night, we'll have to find out when OP comes off doubleshift.
 
Olsen’s papers on empirical scaling laws in high frequency fax data is a good read on this topic. The length of the price ‘coastline’ is estimated there as a mere corollary.
 
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