What are some realistic (expected?) % yearly gains with various trading styles?

Discussion in 'Trading' started by bankroll, May 1, 2014.

  1. Sure there must have been already a topic asking this. I just could not find it.
     
  2. Specterx

    Specterx

    There's not really any such thing - more a range bounded by the risk-free rate on the low end ("bounded" in the sense that if you can't exceed that, there's no point in trading), and a number on the high end which is obviously unrealistic. I'd say returns from position trading (weeks to months+) will max out below 25%, swing trading (days to weeks) somewhat more if you can increase CAGR by applying your edge more frequently. Some big names and funds have managed 30-40% over a career-sized span of time, but these would be the top individual performers in all of history, not very realistic to use them as a benchmark.

    For other styles where liquidity is the main limiting factor, % growth rates don't mean much. The metrics to use there are things like net profit, or profit relative to drawdowns.