Quote from Lucias:
100% per month returns realistic? Probably not. I did 150% net peak return in a couple months trading at NADEX on margin.
Historically, I've looked at opportunity of the market. However, I've more recently been experimenting with average 1k per day on days that I trade (on my 85k hypothetical audited account -- although some people are following my signals with real trades).
First you should restate your goal as "per day that I trade". It just means I'll try to pull out 1k if I feel there is an opportunity in the market. Although, I also look at a "day as sequence" which means I can see trading multiple sequences per day. I.e if the idea/sequence is over then that's a "day".
But now to get that 1k I'm willing to risk up to 3% to 7% of my account per day/trade.
The thing is to average 1k then I have to make a more then 1k and 1 hit means I'm down 3k to 5k. So, I'll have days where I make +2k or +3k. My return goal is high risk/high reward (very high risk) but I did it last month. Even so I'm only trying to shoot for around 1% to 1.3% on the account when i trade!! That's like you trying to make $30 per day, lol.
This is still experimental for me and requires extreme skill. This is a test to demonstrate the full potential of my powers. I figure my returns will be in the 60% to 400% range if I'm successful.
But let's get back to $150 per day... we already decided that making $150 every single day is not realistic but lets talk about $150 per day when you "feel like" trading.
To average $150 per day then you'll need to risk more then $150, i.e because you'll have losses...
So, let's say to average $150 your average daily swing is 2x that amount or $300 per day +-. This is 10% of your account per day. I felt up to an 8% risk on the account is "do able". So you're within range at that level. I'm willing to risk about 3x my goal though so that would put you at $450 or 15% swings which is too much. At 8% swings and a 3x risk to reward, you're looking at making $80 per day.
In summary:
It may be possible if you are willing to increase your risk per day to around $300 and willing to take huge swings and a great trader.
And you'll need a strong edge.
So.. yes its possible but you'll need to take a lot of risk and be willing to risk about 50% to 90% of the account per month.
One thing you have to contend with is that the frictions will be really up against you. The max leverage I'm using to return 1% per day is around -- I believe 4x leverage and even I can see the frictions on that kinda leverage. You're going to be really up against those leverage frictions off the get go and that could prove a problem if you trade too actively.
You're going to need a strong stomach and you'll need ability to keep up your skill even if you're down 50% or 60%.
