I have been working for one year in a financial company. We do have a fund of fund with forex managers. In our fact sheet we say that we have the best forex managers you can find in the market. In 2004 the fund was down 7%. We have tested approximately 20 managers during one year and a half. The best manager did 10% with a 10 mio allocation. So he did 1 mio in one year which is approximately 83 pips a month!!! Most of his gain were made trough options ; 1.7 mio in option and -700,000 in spot. I myself think one can do it (300 pips a month), I am still looking for the holy grail. If you can see it from the inside, you'll see that the finance world looks like this : blind speculators selling products to blind clients. Looking at Soros results, I think he must be proud to have amassed millions, then billions while the majority of the other players where loosing money.
I'm also interested in knowing the answer. Would it be correct to say that the trader, achieving 360 pips yearly using 10K margin for a 100K contract (with a leverage of 1:10), may constantly use only (say) 10% of total capital (i.e. 100K) engaged in daily trading, therefore the annual returns should be 36% per total capital (probably nearly none of the hedge funds trading mainly FX could achieve this consistently), derived from a performance of 360% per contract?
Yes, this is correct. Though I don't know how you get the 360% per contract. If you mean 10k trading size = 1 contract, you are correct. Spot FX does not use contracts
How about the sizing issues below? http://www.elitetrader.com/vb/showthread.php?s=&postid=699581#post699581
Nana, I want to know what you think is average Pips profit (move) per day that is fairly reasonable to look for, say EUR/USD? http://www.mataf.net/en/analysis-volatility.htm
Do you guys believe this? http://www2.oanda.com/cgi-bin/msgboard/ultimatebb.cgi?ubb=get_topic;f=16;t=003720#000000 Q 80 pips per day is gbp/chf daily range ....so who can't make 40 pips a day? UQ
What does avg range have anything to do with avg profit? 80 pip range also means you can lose 80 pips a day as well. I don't understand why people obssess over average anything, the question makes absolutely zero sense at all.