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How much profits do you expect to get back from a USD20,000 trading account?

Discussion in 'General Forex Talk' started by RahmanSL, Jul 27, 2013.

  1. RahmanSL

    RahmanSL Major

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    How much profits do you expect to get back from a USD20,000 trading account in 260 trading days (one year)?


    I have posed that question (or something similar) in various forums but have not received any straight forward reply.

    Yes, indeed, will traders be satisfied with returns which are slightly higher than normal bank interest rates at around 2-6% p.a, or will they be happy with highest bank rates (that I know of) of 14% p.a?

    I highly welcome all inputs as I am extremely curious to the reply(ies) and, for now, will refrain from answering that question.
    ==============================

    Someone posted at another forum:
    "The very best hedge fund manager in the world make 20% PA, Warren Buffet is at approx 30% PA for his entire career, my trading hero Paul Tudor Jones is at about 25% PA for his career...."
     
    #1 RahmanSL, Jul 27, 2013
    Last edited: Jul 27, 2013
  2. LoRio

    LoRio Sergeant

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    I would allocate 2000 to a secondary "extreme" account.
    from those ,trade big moves on high volume+leverage 100$ at a time.
    Now i would start withdrawing from both accounts at 70000 .
    I think that you will find most of u have no amount in mind,just "as much as possible".
     
  3. Pharaoh

    Pharaoh Colonel

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    First, I would try very hard not to lose the $20k.
     
  4. RahmanSL

    RahmanSL Major

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    ...hmmm...that is not what I would expect from one of the richest king on earth!
    USD20k is not that much....but a fair size account which, if we stick to 1.0 size trades and max 3 open trades at any one time, would be difficult to wipe out.
    The trick is to do your homework (both on technical & fundamentals) on target currency pairs , and trade on that pair exclusively (or max with two pairs) for the whole week.

    So the question is: "How much profits would you be happy with in 5 days of trading per week?
    For example, at the start of the trading week (Monday) you make 5% on that usd20k account (i.e usd1,000). Would you be satisfied with that profit and refrain from trading anymore for the rest of the week or would you still continue to trade following the above system for the rest of the week?
     
  5. GOR FX

    GOR FX Sergeant

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    Realistically, about $ 1000-1500 per month.
     
  6. RahmanSL

    RahmanSL Major

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    On a recent trial Demo usd30k account, I made one single 3.0 size trade sell on EUR/USD at 1.31590 and closed it a few hours later at 1.30496 for a profit of USD3,556.64
    That being the case, I do not have to trade for two months :cool:

    So, yes, usd1k-1.5k profit per month can be achieved without too much sweat.

    Thank you for the input.
     
  7. Pharaoh

    Pharaoh Colonel

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    Uncompounded at 1000 per month, that's 5% per month, and 60% per year.

    I want to see someone do this on a live account for 2 years.
     
  8. RahmanSL

    RahmanSL Major

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    Your wish is my command oh Great Pharaoh...master & enslaver of poor old Moses & his people...lord & master of many wives & concubines...
    I hope to be able to start posting my live trades results here as it progresses....i.e if I don't wipe it out AGAIN.....but maybe not for two whole years....possibly for 3 to 12 months.
     
  9. Whitesnake

    Whitesnake Corporal

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    Actually i have not traded with amount more than $3000, but given i would double the account in one year if it works the same way like my small account. :p
     
  10. Pharaoh

    Pharaoh Colonel

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    5% per month compounded would give almost 80% per year. If you are doubling the account, that puts you a fraction under 6% per month.

    The question is, can you do it reliably and without risking blowing out the account?
     

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