I made +18% for my hedge fund account this July so far. But because of next week big news on FED and ECB I stopped trading now. There can be some market turmoils so better to stay safe and out of the markets than sorry. Good but average performance for me this month.
If you keep up your good but average performance you will turn 1 million into 20 billion in five years.
80bp per day in average. That's about what an Elite trader should aim for. 4,000,000$ per point Never risk more than 1% per trade xD I can't imagine the hassle to day trade with 20 billions ... 200 millions per day trade is ... 80,000 ES for 50 points stop. Good luck with that ... Diminishing returns, here you are !
Thanks but I cannot fully compound on my hedge fund account. There are limits. And my profit split is deducted from my account value too to payout me. And they are also not so happy when I make too much gains, so I must cut them sometimes just to be inline with their risk management. That is why I added recently some prop firms too in my trading as addition (to get more risk free capital (for me)). Second 5 years is a very, very long time in this world. So many things can happen. Just review the last 5 years and you see major drawdown can happen everytime all of a sudden (on every kind of strategy too). But I agree it is an art between scaling up and take out cash for hard times or for any safety reasons. If you do not compound at all you do not get rich, if you compound too fast you will loose all gains in the end at some time when a black swan appears or something similar. So for me basically it is not so about to find the proper strategy but a decision between how fast you compound and take out cash. That kind of balance finding is really an art. (Because) You never know when the good times will last longer so everyone can make easy gains (like on a huge bull market by riding hot stocks like in the 90's especially in the last years before the dotcom crisis just as an example here). There are times you can make a fortune much more easily and there are hard times with many structure breaks where it is difficult to compound on each his own strategy. So best is not to speculate what will be in 5 years but focus on good risk management and be aware of any loss streakes or simply bad times to trade (based on the own strategy). So concentrate on the now is better then making dreams where you do not know how many parameters can change in the longer future.
If you could do that annually, for 30 years, with a real amount of money, and with a good risk profile, you would be one of the greatest traders, if not the greatest, that ever lived. Compound that annually and get back to us. Then do the same for the same 30 years with that as a monthly return. I would think you'd be the richest person on the planet by far, lol.
I correct. You'd have 99.999999999% of the money in the world. Could probably add several more 9s. Hehehe.
Stop dreaming. You never know what will happen in the next 3 years speaking of 3 decades. So many things can happen. I would be very surprised if I had no serious drawdowns or loss streakes or any other problems within 5 years. You just do not know the future. Just concentrate on the now. Those people who just do forecast and look at it to continue in the future, that does not work and never worked. The future is dynamic and not static. But all kind of trading models are kind of static and do prolonger something. You never know how much work you need to put in to adapt your edge to make it profitable again at some point in the future. Please stop dreaming and making stupid forecasts. I concentrate on the now and the actual and the next trade. Focus on risk management and the actual things in presence. It does not make sense going forward for decades and making forecasts, are you an anal[c]yst (?) because a trader does not make such forecasts.
You even do not know that every strategy has its limits. There are many pennystocks trader on youtubes. What do you think how rich they can be ? $20 million or maybe little more ? That's it because you cannot make billions by trading shitty tiny stocks. There is trading limit on position size to each strategy. And there are more many other constraints, like capital and leverage and so on. You cannot just put your compounding to infinity. That is too stupid. But of course you want to say I must fail in the future, because it is impossible to be XXXXXX then shut your mouth better. You are just offending other traders here.
So you say I should aim for lower percentage returns per month ? What would you suggest is a healthy growth per month ? What kind of drawdown you would tolerate ? What does your experience tell us ? Do you say I will loose all gains when I make 20% returns per average month ? Did you read the books of Markets Wizards too ? There are plenty of others and many more traders doing this for a long time. But you never know all the statistics because trading is anonymous like and those hedge funds are just a tip of an iceberg of successful traders there. There is no need to ever go public when you trade successfully. That makes this also kind of misterious what all is possible and achievable in trading. The books of Market Wizards just gives you an impression what is doable.
Hahahaha . You seem to miss the point. You said 18% monthly return this month is a good but average return (until you edited it). I'm poking fun at you saying being 100000000000x trillionaire is possible.