Weekly percentage return on capital?

[The Leopard]

It's kind of a weird question really, one that's not possible to answer in any meaningful way. But just for the sake of it:

If you asked me to chose between 20% and 200% per annum, in the real world I'd chose 20%. I'd imagine most noobs would chose the 200.

In terms of day trading with a large account, an average weekly return of half or 1 per cent is very good. Anything above that is excellent.

 

[Mike Kshemaraja]

The % return is only really part of the equation. An equally important question is what drawdown are you prepared to endure to get that return.

Clearly that is important, but also you have to realise that is also a personal factor, based on you psychological makeup.

For some to lose 4% in one day is not a such a big deal, because he knows that the next day he can make 8%, for others losing 0.5% in a week can be such a big deal.

With what I end up with, is important to me, how I got there is something that I have to work out myself based on my conditions.

 

[Mike Kshemaraja]

It's kind of a weird question really, one that's not possible to answer in any meaningful way. But just for the sake of it:

If you asked me to chose between 20% and 200% per annum, in the real world I'd chose 20%. I'd imagine most noobs would chose the 200.

In terms of day trading with a large account, an average weekly return of half or 1 per cent is very good. Anything above that is excellent.

Smooth post.

 

[The Leopard]

Smooth post.

Thank you. By the way, if you are Italian your English is excellent.

Non parlo bene l'italiano, pero vorrei imparo di piu.

Mi piacce molto vistare italia, particolarmente Campagna, cosi devo parlare la lingua (la lingua piu bella del mondo).

Hopefully that makes sense!

 

[Martinghoul]

I assume you are talking about 10-20% on unleveraged capital. If so, I agree, 20% would do very nicely

Yeah, 20% on a moderate amount unleveraged or large amount w/leverage.

Martin

Thank you for your post and it matter very much. I think that is a good return, taking in consideration the way one trades and in relation to his/her capital.

20% on $1000000 is an excellent return, but on $5000 is not much in my humble view.

Yeah, but you see, this is what makes the %age return number quite meaningless outside of context. You need to know what sort of capital you're operating under, what leverage and what drawdown characteristics you're targeting. Otherwise, it's a random quantity.

 

[Mike Kshemaraja]

Thank you. By the way, if you are Italian your English is excellent.

Non parlo bene l'italiano, pero vorrei imparo di piu.

Mi piacce molto vistare italia, particolarmente Campagna, cosi devo parlare la lingua (la lingua piu bella del mondo).

Hopefully that makes sense!

Parli Italiano quasi perfettamente, un po come Dante Alighieri or Alessandro Manzoni. Complimenti.

 

[Mike Kshemaraja]

Yeah, 20% on a moderate amount unleveraged or large amount w/leverage.

Yeah, but you see, this is what makes the %age return number quite meaningless outside of context. You need to know what sort of capital you're operating under, what leverage and what drawdown characteristics you're targeting. Otherwise, it's a random quantity.

Yes you right. But we do not have to be so meticulous about things, is just a matter of conversation, (l'arte di conversare or l'arte del dolce far niente) you make 20% on your capital , he makes 200% on his, the idea is to share our point of view and experiences and not to compare who has got the bigger nose.

Anyway I am getting tired now, made also two trades today 4% gain(between hooligans) with 2% risk per trade. Just check my other thread if you wish.

 

[The Leopard]

Parli Italiano quasi perfettamente, un po come Dante Alighieri or Alessandro Manzoni. Complimenti.

Mille grazie, Signore!

 

[Mike Kshemaraja]

Mille grazie, Signore!

Il piacere e tutto mio carissimo Leopardo.

ciao.

"Veni Vidi Vici" Giulio Cesare.

 

[x4x]

I trade exclusively E/U

161 trades this year, typical average is 50 per month.

94 losers

67 wins

average loss = 13 points

average win = 24 points

Largest drawdown this year to date is 25% due to $hitty price movement during 8th & 9th Feb.

Maximum gain (19/03/2012) = approx 170%

Current gain = approx 139%

Trade from 08:00 - 17:00

 

[Mike Kshemaraja]

I trade exclusively E/U

161 trades this year, typical average is 50 per month.

94 losers

67 wins

average loss = 13 points

average win = 24 points

Largest drawdown this year to date is 25% due to $hitty price movement during 8th & 9th Feb.

Maximum gain (19/03/2012) = approx 170%

Current gain = approx 139%

Trade from 08:00 - 17:00

NIce, clear and fragrant, please more of your posts.:clap:

139% in three months, juicy, well done mate.

Come and show us how you trade on my other thread if you wish.

 

[darkcider]

It's amazing how some people find this type of thread offensive

I suspect it's a retailer thingy:?:

:|"...it really doesn't matter about % returns...":clap::clap:A typical kind of retail reply

:smart:Give me huge risks on high probability events anyday of the week:smart:If i lose it all at least i can console myself with the fact that i was tremendously unlucky:smart::clover: The retail textbook version of risk is hideous in nature, and can only lead to a prolonged and drawnout death of the account:!:

 

[Mike Kshemaraja]

It's amazing how some people find this type of thread offensive

I suspect it's a retailer thingy:?:

:|"...it really doesn't matter about % returns...":clap::clap:A typical kind of retail reply

:smart:Give me huge risks on high probability events anyday of the week:smart:If i lose it all at least i can console myself with the fact that i was tremendously unlucky:smart::clover: The retail textbook version of risk is hideous in nature, and can only lead to a prolonged and drawnout death of the account:!:

Spot on.:clap:

 

[4xma]

I just start trading with tight Stops of 7 pips or less about 1 month ago. I was able to make 25% a month when I was trading with 15 pips SLs only if I was trading with 100% discipline.

With my 7 pips Stop system, I must first preserve trading capital then look for profits. My goal is to make 10% or more profit per week with 2% risk per trade and 6% risk per day and unto 35% total risk of the trading capital.

I am trading between 2AM EST to about 6AM EST.

 

[Mike Kshemaraja]

I just start trading with tight Stops of 7 pips or less about 1 month ago. I was able to make 25% a month when I was trading with 15 pips SLs only if I was trading with 100% discipline.

With my 7 pips Stop system, I must first preserve trading capital then look for profits. My goal is to make 10% or more profit per week with 2% risk per trade and 6% risk per day and unto 35% total risk of the trading capital.

I am trading between 2AM EST to about 6AM EST.

Nice, I also trade only eurusd and audusd.

During Asian session my SL and TP are set automatically at 7 pips, during LO at 10 pips, but as soon as I am in my SL is moved just above/below the setup which made me enter the trade making my RR more pleasant

My trade are based on 30 seconds TF or 70 tick charts(just discovered that), and I risk 2% per trade. I take between none and 4 trades per day, I am very selective with my trades and work very hard, about 10 hours a day, is not unusual to have 4 winning trade in a day, and did not lose more than 3 trades per day (not lately tough). Some day is very easy, some days is very hard, but has nothing to do with the market but just with my little head.

 

[4xma]

Nice, I also trade only eurusd and audusd.

During Asian session my SL and TP are set automatically at 7 pips, during LO at 10 pips, but as soon as I am in my SL is moved just above/below the setup which made me enter the trade making my RR more pleasant

My trade are based on 30 seconds TF or 70 tick charts(just discovered that), and I risk 2% per trade. I take between none and 4 trades per day, I am very selective with my trades and work very hard, about 10 hours a day, is not unusual to have 4 winning trade in a day, and did not lose more than 3 trades per day (not lately tough). Some day is very easy, some days is very hard, but has nothing to do with the market but just with my little head.

That is so true and same to me too.

 

[The Leopard]

I trade exclusively E/U

161 trades this year, typical average is 50 per month.

94 losers

67 wins

average loss = 13 points

average win = 24 points

Largest drawdown this year to date is 25% due to $hitty price movement during 8th & 9th Feb.

Maximum gain (19/03/2012) = approx 170%

Current gain = approx 139%

Trade from 08:00 - 17:00

This is a very good post that new traders (and those tempted to buy systems from gurus) should carefully consider.

Here we have 139% return, which is excellent. However, it has only needed a 40% strike rate to achieve it. Trainers and blowhards talk easily about strike rates of 80% and 90%. In the real world, it is likely to be much lower and that is something people have to come to terms with. There are doubtless some excellent traders who can consistently pull off high win rates, but they are likely to be few in number. Also most strategies with high win rates that people are likely to come across are likely to be losing ones over a reasonable timescale. People should consider why this might be.

The other excellent feature of your post is the 25% drawdown. Even in a very good and profitable year, this can happen, and it's another good lesson to learn.

Thank you for injecting some much-needed reality on the subject of win rates and drawdowns.

 

[Martinghoul]

It's amazing how some people find this type of thread offensive

I suspect it's a retailer thingy:?:

:|"...it really doesn't matter about % returns...":clap::clap:A typical kind of retail reply

:smart:Give me huge risks on high probability events anyday of the week:smart:If i lose it all at least i can console myself with the fact that i was tremendously unlucky:smart::clover: The retail textbook version of risk is hideous in nature, and can only lead to a prolonged and drawnout death of the account:!:

Do you think maybe there's not enough smilies in your post? I think it would be nice to have a few more... If you can squeeze them in, of course.

 

[The Leopard]

Do you think maybe there's not enough smilies in your post? I think it would be nice to have a few more... If you can squeeze them in, of course.

:smart:

 

[Mike Kshemaraja]

Do you think maybe there's not enough smilies in your post? I think it would be nice to have a few more... If you can squeeze them in, of course.

Smiles are never enough.