what is the maximum mathematically possible daily profit

Discussion in 'Trading' started by AttoCEL, Apr 4, 2022.

  1. AttoCEL

    AttoCEL

    If you say so. There are levels to every game. It is not humble or wise to act as if there are not levels of competence to sports
     
    #41     Apr 5, 2022
    murray t turtle likes this.
  2. AttoCEL

    AttoCEL

    Millionaire is the only one that has come close so far. But placing real effort into mathematically answering this question is part of the process of becoming a professional trader. If you dont agree youre exposing your lack of experience, and theres nothing wrong with that but try not to push to hard when youre not too sure. Im 100% sure
     
    #42     Apr 5, 2022
    murray t turtle likes this.
  3. themickey

    themickey

    Black Swan Winner: Volkswagen
    In one of the biggest short squeezes of all time, automaker Volkswagen became "the world's priciest firm" over the course of a single trading day. Just before this massive spike, Volkswagen was widely believed to be an independently owned entity.
    The market held an overwhelmingly bearish outlook on its prospects, and the stock consequently fell victim to an unusually high number of short sellers. Then, on Oct. 28, 2008, carmaker Porsche suddenly announced it held a 74.1% ownership share in Volkswagen, which it had recently acquired through derivatives trading. Porsche abruptly took over Volkswagen's operations, and shortly after that, institutional and individual investors alike scrambled to liquidate their short positions.
    Consequently, some shares sold for over €1,000, briefly making Volkswagen the largest company in the world, based on sheer market capitalization. At its highest point during the day, the company share price was up by more than 93%.

    93% x 500 = 46,500%
     
    #43     Apr 5, 2022
    virtusa likes this.
  4. virtusa

    virtusa

    I think this is not correct.
    Porsche had not enough credit lines to reach the 75% and banks started to ask their money back. Porsche got in a liquidity crisis and lost the battle. Porsche was taken over a few years later for 100% by Volkswagen.
     
    #44     Apr 5, 2022
  5. 1/2000th of what it would be if you used 1,000,000:1 leverage.
     
    #45     Apr 5, 2022
    murray t turtle likes this.
  6. fan27

    fan27

    Translation = I am broke trading a SIM account.
     
    #46     Apr 5, 2022
    murray t turtle likes this.
  7. ph1l

    ph1l

    You're right. I didn't think anyone would notice that a 100% gain on every trade before leverage was just a little unrealistic.:p

    Here is a slightly more obtainable answer.
    (((1 + p / 100 * 500) ^ n) - 1) * 100
    where p is the percent gain on every trade, n is the number of trades, and you use 500:1 leverage on the entire account for each trade.

    Example: p = 0.1% with 10 trades
    Code:
    perl -e 'my $v = (((1 + 0.1 / 100 * 500) ** 10) - 1) * 100; print sprintf("Your account has gained\n%.2f%%\ntoday.  Good night, and have a pleasant tomorrow.\n", $v);'
    
    The result is
    Your account has gained
    5666.50%
    today. Good night, and have a pleasant tomorrow.


    Now go show us how it's done.:)
     
    #47     Apr 5, 2022
    murray t turtle likes this.
  8. newwurldmn

    newwurldmn

    i did a study unlevered:

    if you started in 1980 with $1 and could chose at the close to invest in the spx or not. and you were right 100% of the time. you would have 1,458,338,895,849,030,000 right now.

    Without leverage or day trading. Just buying on the close.

    This thread is equivalent to saying, i shoot 4
    I don’t agree. This is a dumb exercise.

    I did a calculation that if you started with 1 penny in 1980 and you could predict if the market would rally the next day and you bought the close before the rally and sold the close before a non-rally. you would have 40 quartillion (40,000 trillion) dollars by now. No leverage. No day trading. Just one trade a day - like 2 minutes of work every day.

    So now, what's the point?
     
    #48     Apr 5, 2022
    murray t turtle likes this.
  9. maxinger

    maxinger

    [​IMG]

    Your answer is wrong.
    You are now terminated.
     
    #49     Apr 5, 2022
    Leob likes this.
  10. [​IMG]
     
    #50     Apr 5, 2022
    murray t turtle likes this.