Is 2% return per week realistic?

[D70]

A lot of people work % return incorrectly.

I have a 50k account and I risk 1k per trade. Last year I made 30k profit. - A lot of people will simply say .. 30k/50k = 60% return in a year. Wrong!!

It needs to be broken down further then that.

In that year I made 260 trades, each one, as i said risked 1k. Therefore i risked a total of 260k to make 30k. My return is 11.53% for the year, not 60% -

How's this year going ffsear?
Shame you dont contribute more. Reckon a lot of people could learn a thing or 2 from you.

 

[ffsear]

Ha, Cheers!

I've not actually traded for about 4 weeks. I'm training to become a commercial pilot so have a lot of exams at the moment.

Will be back in the markets soon no doubt!

 

[D70]

Ha, Cheers!

I've not actually traded for about 4 weeks. I'm training to become a commercial pilot so have a lot of exams at the moment.

Will be back in the markets soon no doubt!

Is that the CFTC thing? Where they send you to New Zealand for a few months?

 

[Lickyluciano]

Wow! This thread had the best traders in the universe! They speak of what is possible and make 2-5% per day and laugh at 2% per week and justify their lack of fame and wealth by stating they do not compound because they need to pay bills.

Let me state the obvious and be blunt. This thread is full of bull crap!

 

[ronblack]

Developing a consistently profitable method is a huge part of the battle. You need to know what kind of drawdowns are a natural part of that system, etc.

Exactly. A 2% return per week is doable under the condition imo that you will need to take several positions every week and average a 2% gain. This means you need a large capital base. You also need the "2% system" that will give you enough signals every week. See how this guy is doing it through scanning:

Price Action Lab Alert for Thursday, August 23, 2012 | Price Action Lab Blog

He does that daily even with trades at the open that are exited at the close:

Price Action Lab Alert for Wednesday, September 5, 2012 | Price Action Lab Blog

I'm not saying you have to follow this or a similar method but you must have some method along these lines. It is doable to gain 2% per week but you have to work your a** off. I don't think a fully automated system can get that high. You will have to exercise discretion.

 

[Lickyluciano]

Exactly. A 2% return per week is doable under the condition imo that you will need to take several positions every week and average a 2% gain. This means you need a large capital base. You also need the "2% system" that will give you enough signals every week. See how this guy is doing it through scanning:

Price Action Lab Alert for Thursday, August 23, 2012 | Price Action Lab Blog

He does that daily even with trades at the open that are exited at the close:

Price Action Lab Alert for Wednesday, September 5, 2012 | Price Action Lab Blog

I'm not saying you have to follow this or a similar method but you must have some method along these lines. It is doable to gain 2% per week but you have to work your a** off. I don't think a fully automated system can get that high. You will have to exercise discretion.

MARKET WIZARDS mathematics does not work. 2% per week CAN BE COMPONDED to over 250% return per year. It doesn't work because it is just pie in the sky theory which does not take all factors into consideration. Factors like losing streaks, drawdowns in your account, changes in the market which make your system a losing one, changes in your phsycology.

Sure, some people do achieve this at certain times in their careers but if anyone on this forum could truly do 2% NET profit per week CONSISTENTLY after accounting for the negative factors i stated above then the book series, Market Wizards would be all about you.

Obviously, using common sense, I am not saying I have never made 2% per week. At times I have made 25% in a week or less on nice swing trades but this doesn't mean I ACTUALLY MAKE 25% per NET week after losses, drawdowns, slippage etc. Only a foolish newbie who knows nothing would make this claim.

There are times when the market gives profits easily and there are periods where she is extremely difficult and takes your money.

 

[rsh01]

MARKET WIZARDS mathematics does not work. 2% per week CAN BE COMPONDED to over 250% return per year. It doesn't work because it is just pie in the sky theory which does not take all factors into consideration. Factors like losing streaks, drawdowns in your account, changes in the market which make your system a losing one, changes in your phsycology.

Sure, some people do achieve this at certain times in their careers but if anyone on this forum could truly do 2% NET profit per week CONSISTENTLY after accounting for the negative factors i stated above then the book series, Market Wizards would be all about you.

Obviously, using common sense, I am not saying I have never made 2% per week. At times I have made 25% in a week or less on nice swing trades but this doesn't mean I ACTUALLY MAKE 25% per NET week after losses, drawdowns, slippage etc. Only a foolish newbie who knows nothing would make this claim.

There are times when the market gives profits easily and there are periods where she is extremely difficult and takes your money.

you clearly have never worked at a prop firm

 

[Lickyluciano]

you clearly have never worked at a prop firm

No I do not. Do YOU take 10% from the market each and every month, year after year consistently with no drawdowns?

 

[Lickyluciano]

you clearly have never worked at a prop firm

Here come the stories of "I know this guy that made 300% last year" or I made 100% one year. We are talking CONSISTENCY. Everything else is called LUCK and very well documented.

Read this.......

Forums - Annual Returns for Prop Traders?

and this from TRADER FEED (from the owner of a Prop Firm)





10:55 AM
Brett Steenbarger, Ph.D. said...
Hi Antonio,

In a zero rate environment, a 15-20% annual return after expenses on a solid risk-adjusted basis will keep a professional trader at a hedge fund employed for a long time. Would be gurus and fly by nite "prop" firms need to promote huge returns in order to justify trading to undercapitalized traders.

Brett




and TRY READING THIS.......

News Room
EmailPrint FriendlyShareSOURCE: Maverick Trading


January 25, 2012 07:00 ET

Maverick Trading Announces 2011 Returns and Profit Sharing for Prop Traders


SALT LAKE CITY, UT--(Marketwire - Jan 25, 2012) - The premier proprietary trading firm, Maverick Trading, released its 2011 portfolio returns to its traders on Thursday, January 12 in a private presentation to the firm. While exact details remain within the firm, Maverick Trading management was comfortable in confirming that portfolio returns for 2011 exceeded 40 percent by a fair margin. In a year where over 90 percent of actively managed funds fell short of their benchmark indices and the broad markets returned a paltry 0.5% for the S&P 500 and just over 5% for the Dow 30, the traders at Maverick Trading continued their track record of solid outperformance, bringing the firm's record of alpha generation to well over 250 points since the beginning of 2008.



There is a BIG DIFFERENCE between making 10% a month once and a while or having a goal of 10% a month and ACTUALLY doing it consistently after drawdowns etc.

No use posting it is possible unless you have been actually doing it for 5 years or more. This would make you amongst the best in the world and even they don't do it consistently.

 

[Mr Woozel]

Lickyluciano gets my vote!

 

[Splitlink]

Porcentages are a very deceiving way of posting returns. Most of them are using a low capital base and the risk is colossal although this fact is easily forgotten if the trades start with a winning streak.

Don't forget the operating costs, either. I bet boasts of 50% profits would not cover a decent wage, although it sounds great.

If, and it's a big "if", a trader was to start with modest capital and achieves 1000% profit he would be well advised to thank his lucky stars and reduce his profit expectancy drastically.

2% per week, with someone else doing it for you, is a big chance to take.

Sometimes---often, in fact--- there is a point which is a gamble. The capital is so small that it is double or nothing. But, if that gamble pays off let logic and statistics take over,reduce %age expectancy and go more slowly.

 

[ffsear]

MARKET WIZARDS mathematics does not work. 2% per week CAN BE COMPONDED to over 250% return per year. It doesn't work because it is just pie in the sky theory which does not take all factors into consideration. Factors like losing streaks, drawdowns in your account, changes in the market which make your system a losing one, changes in your phsycology.

Sure, some people do achieve this at certain times in their careers but if anyone on this forum could truly do 2% NET profit per week CONSISTENTLY after accounting for the negative factors i stated above then the book series, Market Wizards would be all about you.

Obviously, using common sense, I am not saying I have never made 2% per week. At times I have made 25% in a week or less on nice swing trades but this doesn't mean I ACTUALLY MAKE 25% per NET week after losses, drawdowns, slippage etc. Only a foolish newbie who knows nothing would make this claim.

There are times when the market gives profits easily and there are periods where she is extremely difficult and takes your money.

Your sort of stating the obvious here! Some weeks your up, some your down.

We're talking about going over past data and working out average weekly return!

No one is saying i'm going to make 2% every week without having a losing week.

 

[ffsear]

Is that the CFTC thing? Where they send you to New Zealand for a few months?

Same sort of thing, but with Oxford Aviation.