Why do they do it?

[trader_dante]

I forgot to add: The result each month is calculated from the start of each month to the end of each month NOT from the initial starting balance.

That is probably why you came to that conclusion, SM

E.g. in May 2010, I don't drawdown 31.49% of the entire account. I am down 31.49% from the beginning of the month to the end of it.

 

[the hare]

The net result is almost a 1,000% profit after 12 months trading but it doesn't come in the even distribution that all the newbies love....

Its sites such as T2W that are mainly responsible for setting exactly those kinds of unrealistic expectations. For the majority of people, forums are the single biggest obstacle to achieving profitability. Their sponsors must love them.

 

[DionysusToast]

I forgot to add: The result each month is calculated from the start of each month to the end of each month NOT from the initial starting balance.

That is probably why you came to that conclusion, SM

E.g. in May 2010, I don't drawdown 31.49% of the entire account. I am down 31.49% from the beginning of the month to the end of it.

Fnck me - does no-one know how to calculate returns on this site?

I presume your 200% month wasn't 200% of the account either - but 200% of the month.

So that'd be about 61 days you made, right?

 

[the hare]

Fnck me - does no-one know how to calculate returns on this site?

They do, but it doesnt really suit anyone's commercial adgenda.

You would hope that the moderators and admin of a trading site would be a little more draconian in their attempts to put a stop to such nonsense, but sadly, its precisely this kind of thing that creates their advertising revenues.

I made 400% today by a certain vendors metric. In reality it was actually less than 0.5%

 

[trader_dante]

Fnck me - does no-one know how to calculate returns on this site?

Can you enlighten us?

 

[scose-no-doubt]

Total equity chart based on initial deposit with adjustments or notations for extra deposits.

 

[trader_dante]

Total equity chart based on initial deposit with adjustments or notations for extra deposits.

Thank you Scose.

That's a 982.34% return then.

With an adjustment in July 2010 for a withdrawal of initial deposit + 100%.

 

[meanreversion]

I forgot to add: The result each month is calculated from the start of each month to the end of each month NOT from the initial starting balance.

That is probably why you came to that conclusion, SM

E.g. in May 2010, I don't drawdown 31.49% of the entire account. I am down 31.49% from the beginning of the month to the end of it.

Excuse my slowness.

In May, you are down 31.49% of what? Let's say you started at the beginning of the year with £100k, what is the £ drawdown in May? (ignore withdrawals or deposits)

 

[DionysusToast]

MR - it's 31% of the month - that's about 10 days.

Honestly - you are dumb sometimes.

 

[meanreversion]

MR - it's 31% of the month - that's about 10 days.

Honestly - you are dumb sometimes.

trade2win is lahk a bahx of chahcolates , you never know what yor gonna get.

 

[scose-no-doubt]

Thank you Scose.

That's a 982.34% return then.

With an adjustment in July 2010 for a withdrawal of initial deposit + 100%.

post a chart or gtfo

 

[meanreversion]

gtfo

generate trades for others?

 

[glyder]

Why do they do it?

Beats me if these numbers are correct.
http://forexmagnates.com/us-forex-brokers-account-profitability-comparison-q4-2010/

Thats not a hell of a lot of retail trading accounts for the whole of the US, which I thought was the FOREX dreamland.

 

[trader_dante]

post a chart or gtfo

LOL

Here you go...

Why don't you post one of your returns using AFTD?

P.S You will have to wait if you want a weekly one...I'm busy in the Cable.

 

[HowardCohodas]

Total equity with notations vs. month on month returns. Hmmm. Where have I seen this discussion before?

It's month on month for me. Shows consistency without the confusion of additions, withdrawals and compounding. The metrics that have been invented to rationalize these issues are confusing to newbies who are trying to get a mental picture of what to expect.

 

[trader_dante]

Total equity with notations vs. month on month returns. Hmmm. Where have I seen this discussion before?

It's month on month for me. Shows consistency without the confusion of additions, withdrawals and compounding. The metrics that have been invented to rationalize these issues are confusing to newbies who are trying to get a mental picture of what to expect.

I agree with you Howard.

I had some mentoring at my prop firm from a hugely successful swing trader and the one thing he taught me was that the market and the trader moves in cycles and that a great trader will manage to tread water in the bad times and know to swing big in the good ones. I've never forgotten that.

So the point of my original post was to show, in as transparent a way as possible, one way in which returns can develop.

That is not only how you get an idea of consistency but it is also providing a good deal of information on what to expect in terms of length of drawdown in time.

It is not enough to someone to say I made 100% in 12 months. People want to know if to achieve that, they are going to have to sit there for 3 months in a row losing 2% per month and getting no income.

If you take the average set of vendor results though, what strikes me is not so much the amount (almost always in pips) that they claim to make but rather the consistency with which they make them.

Most newbies come to expect this consistency and this is why I think they get disillusioned.

 

[SanMiguel]

Thank you Scose.

That's a 982.34% return then.

With an adjustment in July 2010 for a withdrawal of initial deposit + 100%.

So, the 982. That includes subscriber payments and training payments too, yeah?
:clap:

 

[trader_dante]

So, the 982. That includes subscriber payments and training payments too, yeah?
:clap:

Haha!

I'd have needed 42 members a month to even equal what I was making in just the model account.

In actuality I had 6.

So, nice try...but no.

 

[DionysusToast]

LOL

Here you go...

Why don't you post one of your returns using AFTD?

P.S You will have to wait if you want a weekly one...I'm busy in the Cable.

It's interesting - but the fact is you did this by taking large risks. You took large risks because you have already written the money off in your head as you have covered your initial outlay.

You have commented yourself about how not all good traders can be rich, yet - if you could replicate these results with larger sums - say, starting off with $20k, then you would be rich fairly quickly.

So - what does this tell us ? Is this unsustainable or do you just not have the mental fortitude to replicate this with larger sums?

 

[new_trader]

I forgot to add: The result each month is calculated from the start of each month to the end of each month NOT from the initial starting balance.

That is probably why you came to that conclusion, SM

E.g. in May 2010, I don't drawdown 31.49% of the entire account. I am down 31.49% from the beginning of the month to the end of it.

You're confusing me TD

keep it simple. This is how I calculated it, tell me where I am going wrong. The total gain should be +1269.5% shouldn't it, assuming a starting balance of £1000?

-14.42 ----- 0.8558 ----- £855.80
208.06 ----- 3.0806 ----- £2,636.38
57.53 ----- 1.5753 ----- £4,153.09
-17.11 ----- 0.8289 ----- £3,442.49
1.92 ----- 1.0192 ----- £3,508.59
18.67 ----- 1.1867 ----- £4,163.64
68.99 ----- 1.6899 ----- £7,036.14
-25.71 ----- 0.7429 ----- £5,227.15
88.12 ----- 1.8812 ----- £9,833.31
-31.49 ----- 0.6851 ----- £6,736.80
23.35 ----- 1.2335 ----- £8,309.84
64.81 ----- 1.6481 ----- £13,695.45