NetTecture
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I really dont know how your (low) numbers come together.
Let's take a strategy that has an estimated return per trade of 0,15 times the risked amount. Note that this includes drawdown etc. - statistical target is double the risked capital. That is quite doable. THis means fo a risk of 200 USD, one gets a net profit, after drawdowns, of USD 30. Short term trading. Note that I dont say "a trade wins USD 30".
This means to have this as 2% trade risk, this is USD 10.000 capital needed.
Lets assume one makes 5 average trades per day. This is absolutely in the reach of certain strategies, and we do not talk of scalping 2-3 points here. I have a strategy on my table with a Risk of 300 USD that takes out an average of 100 USD per trade, and stays in the market about 8-12 minutes each time.
This gives us:
- 5 trades per day, USD 30 profit each, is 150 USD profit.
- 20 trading days this makes USD 3000 profit.
Easy 30%. This is halfly conservative.
Why dont funds make that? Well, there is a total limit of capictal one can take out. One can not do such little trades with a 100 million account. And a stop loss there... is acutally something one can not hav ein the market, because a 1000 contract stop may move the market, one has to wokrk strategically, i.e. on a larger timeframe. Heck, a fund may use an intraday strategy to "hide its entry" (use buy ocasions for buying a couple of hundred contracts each).
This is why big traders make less in percent. Small accounts... should get 1% per day minimum, better 2-3. And this is doable with a lot of smaller lower risk trades.
Let's take a strategy that has an estimated return per trade of 0,15 times the risked amount. Note that this includes drawdown etc. - statistical target is double the risked capital. That is quite doable. THis means fo a risk of 200 USD, one gets a net profit, after drawdowns, of USD 30. Short term trading. Note that I dont say "a trade wins USD 30".
This means to have this as 2% trade risk, this is USD 10.000 capital needed.
Lets assume one makes 5 average trades per day. This is absolutely in the reach of certain strategies, and we do not talk of scalping 2-3 points here. I have a strategy on my table with a Risk of 300 USD that takes out an average of 100 USD per trade, and stays in the market about 8-12 minutes each time.
This gives us:
- 5 trades per day, USD 30 profit each, is 150 USD profit.
- 20 trading days this makes USD 3000 profit.
Easy 30%. This is halfly conservative.
Why dont funds make that? Well, there is a total limit of capictal one can take out. One can not do such little trades with a 100 million account. And a stop loss there... is acutally something one can not hav ein the market, because a 1000 contract stop may move the market, one has to wokrk strategically, i.e. on a larger timeframe. Heck, a fund may use an intraday strategy to "hide its entry" (use buy ocasions for buying a couple of hundred contracts each).
This is why big traders make less in percent. Small accounts... should get 1% per day minimum, better 2-3. And this is doable with a lot of smaller lower risk trades.