Just to clarify I take out all profits during or at the end of each month maintaining a fairly constant margin.As a result this return does not compound. Do not think I could do more volume than I do, so having additional capital is no real advantage.
Would be interested to know a bit more about your methods. I'm not looking for "proof" of your returns or examples of trades etc- nothing like that. Just a brief description of what you trade, type of trading, no of trades per month, amount risked per trade, % winners, rough r:r - that sort of thing.
For the record, my trading history doesn't go back a full year yet, but over 8 months, my return has been 81% which is an average 7.7% per month compound. This has been on a part time basis, trades being over a few days at a time, trading several fx pairs.
Ave number of trades per month is approx 10. I have tweaked my style a fair bit since I started and now have about 55% win rate with average risk:reward of about 1:2. I am now looking to average 10% per month compound which I have for the last couple of months. Currently using 3% risk per trade, but taking measures to reduce that to 2.25%, without reducing the reward side (increasing r:r to c 1:2.6- thats my plan anyway).
I am still working with a relatively small capital base but building up, so returns will be compounded if all goes to plan. I would like to go full time and I think I could use a similar strategy intraday, but with more trades and hence a higher average profit per month. This is why I am interested to hear more about your style, method etc.
Shit, should have stayed quiet, obviously the excesses of the weekend had a bad effect. After the meet I went on to watch the Rugby and ended up, shall we say, a little light headed. Darrenf, will PM if you are guenuinely interested.
Problem is if I start mailing onto this thread I will be inundated with questions which seek to ascertain exactly how I am trading. As anybody knows who has been in this biz a while, each individual develops their own style. I traded prop for years before I went out on my own but it has only been in the past two years that I came across the basic methodology that allowed me to develop the style that I employ now.
I would just say that what I do is in no way extraordinary. There are many traders who came off the floor and adapted to the screens and make far more than I do. It took at least 6 months before I made anything much.
It is also something which could not be taught in a book or by e-mail. The new guys who come here get taught a methodology and are slowly allowed to increase their risk as they get comfortable and start to develop their own style. It takes time and a lot of hours infront of a screen. Other than that it is really very mechanical. No big secret to it, just very different from trend following systems. The downside is that although it is great for an individual you would not be able to employ this method for managed money. There is little point in putting more money into my margin account as I hardly ever reach the position limits that the current money allows.
I coached someone in September 2002 and he sent me the broker record of his trades for the first three months of trading cfds so you can get some idea of what is achievable for a relative beginner who is prepared to work and constantly learn.
He traded only 200 shares at a time very cautiously following my methods rigorously. He only occasionally traded more
than once a day (normally there are 4-8 good trades) and because of his other commitments only on 30 days out of 60 in the quarter Oct,Nov,Dec.
His average trade worked out at $39.11 x 200 shares producing profits of $1849 on average trade size $7823, a return of 23.64% in 30 days.
I am only saying this to indicate what is achievable with training, application, determination and good self control, I am NOT looking for more clients.
Had he traded on the 60 days, (20 trading
days per month), available he should have doubled that.
Virtually all his trades were made in the first two hours of trading, 2.30 to 4.30 pm. Had he traded in the evening regularly he would have made more.
That time slot and also 7pm to 9pm are the prime times to make money.
D only traded 44 times, one scratch trade, four losses, 39 wins.