Is this business really scaleable?

Well, is it? or are there scale factors which work against one (aside from taxation)?

you've got to be consistently winning first. losses are certainly scalable.

it probably is to an extent but you may get more slippage etc. if you are winning big all the time

Trading is not scalable. Point. You can not do trades with hugh amounts of money in short timeframe. So you will move into long term trading, investing...
...once you reach some dozen million dollars or euros, possibly.

A lot depends on how you trade. The longer the timeframe, the easier it is with large funds. Scalping is not possible with high return if you manage a 100 million USD fund - you simply can not enter / exit the market fast enough.

That said, how large do you WANT to scale? 5million USD profit seem to be way below the critical limit for short term, even 25 million USD should be doable (assuming a not scalping approach). Swinging 100 contracts does not seem to be TOO bad from even stop loss under most circumstances (i.e. not TOO much slippage).

What works against is ticket size. Once you get large enough, a stop order will execute with more slippage. Period

So, I would say: stop worrying

Depends on which markets you're in I'd say; going from 2 to 20 lots in the FTSE would be difficult, whereas you could trade a 2 lot and a 20 lot exactly the same way in a thicker market.

NetTecture said:

Trading is not scalable. Point. You can not do trades with hugh amounts of money in short timeframe. So you will move into long term trading, investing...
...once you reach some dozen million dollars or euros, possibly.

Click to expand...

You're kidding right? I just looked at EUR/USD and I could probably clear 20-25m euros within half a point of where we are now, no drama at all. Short term trading in FX in that size is not only possible, it's common. It's just that it requires wholesale liquidity and professional tools.

Problem is that this requires a longer approach. Note that my post was a little sarcastic. I said "some dozen millions" - so your 20-25 are on the LOWER end of what I actually mentioned. "some" being more than "a pair".

I basically wanted to point out that while you may have problems clearing 10 billion, the limit is so high it is not something to be of convern, unless you are in mostly for 2 minute trades.

Maybe my irony was a little too light.

NetTecture said:

Problem is that this requires a longer approach. Note that my post was a little sarcastic. I said "some dozen millions" - so your 20-25 are on the LOWER end of what I actually mentioned. "some" being more than "a pair".

I basically wanted to point out that while you may have problems clearing 10 billion, the limit is so high it is not something to be of convern, unless you are in mostly for 2 minute trades.

Maybe my irony was a little too light.

Click to expand...

A generalised answer to an admittedly vague question. Try clearing 'some dozen millions' in the DAX.

OK. I hope I get to experience severe slippage. Thanks guys.