2018 P/L year to date +40%

Discussion in 'ETFs' started by VolAlgo1, Apr 19, 2018.

  1. One year is too short to say something.

    Spend five or ten years so find a significant PnL result.

    1)If you like to say "I kept annual compounded 10% for 5 years", then your initial seed of 100 should become 100*1.1^5 = 161.051 which is 61%.

    1)If you like to say "I kept annual compounded 20% for 10 years", then your initial seed of 100 should become 100*1.2^10 = 619.1736 which is 519%.

    after tax and commission, of course.

    If you are following Buffets result, then you should keep 20% for 50 years.
     
    #31     Apr 21, 2018
  2. If you have an army with 100 soldiers this year, annual 20 percent above means those 100 soldiers should conquer 20 soldiers (from outside country?) yearly in average to become 120 soldiers.

    Next years 120 soldiers becomes 100*1.2^2=144 soldiers.

    How about 50 years later?
     
    #32     Apr 21, 2018
    312 likes this.
  3. 312

    312

    Well done. I didn't get it before, but it makes total sense now.
     
    #33     Apr 22, 2018
    JackRab likes this.
  4. VolAlgo1

    VolAlgo1

    Meanwhile in the real world,
    2016 PL = +88%
    2017 PL = +89%
    2018 YTD PL = +60%
     
    #34     Apr 22, 2018
  5. Good, If you have record of annual compounded 80% for last three years, and if you are confident the anuual percentage long time (for example 50 years).

    Then you current asset is expected to grow 1.8^50 = 5802635025810 times after 50 years.

    If you have saving of 100K (for example) in current seed, then you shall be the most rich man in the world 50 years later.
    Even if you have only 10K in seed, then same is true.

    Congratulation!

    PS) Quite possibly, Buffet and Gates (their grandson) should be broke after 50 years if so.
     
    #35     Apr 22, 2018
  6. JackRab

    JackRab

    Can you now do your analysis including a projection of scalability?
     
    #36     Apr 22, 2018
    312 likes this.
  7. Would you tell me more precisely what you say?
    My English is short.
     
    #37     Apr 22, 2018
  8. JackRab

    JackRab

    Do you actually believe that this:

    "Then you current asset is expected to grow 1.8^50 = 5802635025810 times after 50 years"

    can happen in real life? Or would you maybe think that it will get pretty difficult to trade $5.8 Trillion (and that's based on starting out with $1,-) in ANY product to create ANY profit without completely derailing the ENTIRE market?

    Ever heard of 'slippage'? What do you think the slippage will be on a $5.8 Tr round trip? o_O:cool:
     
    #38     Apr 22, 2018
    312 likes this.
  9. 312

    312

    I believe it. I learned it in the Financial Engineering program @ Elon Musk University
     
    #39     Apr 22, 2018
    jys78 and JackRab like this.
  10. JackRab

    JackRab

    The sky is the limit! ;) Or in Elon Musk's case... since he shot a car into space, The sky is NOT the limit! :D
     
    #40     Apr 22, 2018
    312 likes this.