What do you consider a decent yearly profit if we assume a trader/investor is pretty conservative and doesnt use huge leverage and tries to avoid big risks?
This is Elite(retail/small time)Trader...that kind of goes w/o say that we are aggressive for money or % returns. And if you're not like that -- you shouldn't be here. just in my opinion. But to answer your question...I would consider 10% a decent yearly profit for the conservative investor. Just saying 'conservative investor' makes my dick limp
What do you consider a decent yearly profit if we assume a trader/investor is pretty conservative and doesnt use huge leverage and tries to avoid big risks? For equities & ETFs 20-25% For futures & forex 35% I would not be wasting my time trading if this was not realistic & sustainable over the long haul. People with smaller accounts trading more aggressively while taking on more risk obviously have a lot more up & down side in terms of percentages. One year you may be close to flat, the next year you may up by a hair, and the third year you may be up 90% - hence, the distributions are not linear - at least for swing traders anyway.
A Sharpe of 1 over the long term net of 2 and 20 is very very very good, e.g. Most multi billion dollar funds are between 0.6 and 0.8 Your percent amount is subjective, anything with a Sharpe of 1 will make you 10pc per year with drawdown of 8pc every 7 years... Or 30pc a year with dd of 24pc every 7 years, the leverage you use is really subjective
anything that beat S&P500 or index "Buy and Hold" after all fees and short term taxes (unless in a taxfree account or scheme). Generally 15% gross would get you there.
If the strategy is correlated to the market, better than the S&P 500 or a little lower but with less volatility. If non-correlated, 6% to 12%.