Last year's top fund made around 40% in a year. I know one hedgefund manager who trades almost all major markets, says 20-30 % is the reasonable expectation per year if the funds are doing good. And they all have very strict drawdown limits, max loss per trade/position etc. And hedgefunds cannot afford large drawdown and if they do more than 5 or 10% it looks like they will go kaput. I guess it is due to low risk tolerance of fund investors.
you think trading/investing in Any financial market Isn't gambling ? you think the amount of money in the account determines/Eliminates gambling ? you want to trade with a fear-financial risk of 0 you think a 2-5% trading profits target will protect you from losing ? you think the currency markets are the best place to obtain your 2-5% ? congratulations. you're a delusional thinker what you need to do is go to your local bank branch, tell the girl behind the counter you have $500k, that you want the principal guaranteed and guaranteed 2-5% return she'll tell you what products the bank offers. voila ! choose one and deposit money
Not enough input. What is your time horizon/trading frequency of interest? Position trading and day trading can't be compared, what's "good" ROI for one style is pathetic for another etc.
In forex I have seen some people turn 300USD accounts to 5000USD in 1 month, if not 2 weeks but this was during 2008 subprime crisis. Now to do this, they needed 1:500 leverage. Highly risky. Per trade they were risking a lot. This is no fun. I recall giving them 40k to trade and they turned 40k balance into 15k balance. 25k loss. The trader could not get his head around big money he was trading. Plus getting filled was difficult and 1:500 was not offered. So anyone who claims to make 20%-40% a month is full of lies. You can do that with a tiny pocket money account with 500usd but when you give them big amount of money, they you could say bye bye to your money. Tight risk management with system based rules are the way forward. You should be looking for 20% to 40% on average profit per year. This is what is expected from forex. After so many years of wasting money here and there, I have finally stuck with my trader from Europe who has been making me around 60%-80% per year net. There are drawdowns sometimes of around 5-10% during the month. But that does not matter as the system based strategy has been making consistent profit.