Yes but where was $1000 capital deployed mentioned or a 1% move?
Like I said previously, too little info.
We get to make assumptions too !
Yes but where was $1000 capital deployed mentioned or a 1% move?
Like I said previously, too little info.
What if that optimal leverage is higher than what your broker offers you?Assume you are consistently profitable,there only two factors to decide what leverage you use:
1. maximize your profit;
2. ensure that your account will never blowout.
So it is the risk of ruin that limits the maximum leverage you can use, not the leverage your broker offer you.
What if that optimal leverage is higher than what your broker offers you?
I don't know about maximum mathematical, it will be close to infinity but the very best hit firms on the planet make about 75% a year, 0.3% a day
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.cftc.gov/sites/default/files/idc/groups/public/@economicanalysis/documents/file/oce_riskandreturn0414.pdf&ved=2ahUKEwih4uvf_f_2AhU3QUEAHVA6AO0QFnoECAUQBg&usg=AOvVaw0BXjkWGdmbqaO5__1K75Qb
GAT
In practice, HFT returns on capital are presumably several times higher than we report, and thus these numbers should be interpreted as conservative lower bounds.
you buy the bid and sell the offer of every move in one direction. easiest is to assume one move where you buy at 10 and sell at 11 and make a tick. you only need to put up 1/500 dollarsassuming you can catch it all, what is the maximum daily profit percentage possible with 500:1 leverage.
you buy the bid and sell the offer of every move in one direction. easiest is to assume one move where you buy at 10 and sell at 11 and make a tick. you only need to put up 1/500 dollars
OP "assuming you can catch it all, what is the maximum daily profit percentage possible with 500:1 leverage" so stretch out a bottom to top, then sum each tick_value * volume * 500Did you try it yourself?
If yes, what was the result?
Do you always buy first and sell later? What if the trend is short? You might not be able to sell with profit then.
Where is the stop?
I know somebody who tried that with 1 ES. He lost in seconds $900 and quickly closed the system, as it generated each time new orders.
I do not have the full details about his system, but he tried to make 1 tick in each trade.