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

RahmanSL

Major
Messages
2,536
I have been dabbling on-and-off with Carry Trades for years and, though I have not been as successful as I would like to be due to increasingly workloads with my regular job as an Oil & Gas project management team member, I am still very much convinced that Carry Trades is still one of the most consistent way for profits without doing very much trading work.

I recently picked the EUR/TRY when the Turkish Lira was going through some crisis due to their presidential election and quickly set-up a DEMO account to test my beliefs in the advantages of Carry Trades. The Turkish central bank raised their overnight interest rate to counter the Lira weakness and I picked it to trade against the Euro because of EUR zero overnight interest rate.
Following is an actual screenshot of the results ending Friday 30-June-2018:

Carry Trade Screenshot1.jpg

I am not going to go into too much details but just mentioned the basic.

Starting Account Deposit: USD10,000
Total numbers of Carry Trade on EUR/USD: 5.0 lot size

The Profit is USD17,618.74 (including positive daily swap values) which is 176.18% increase over initial starting account deposit. That is of course very good profits especially for just over 2 weeks.
However, the main attraction is the positive daily swap value which at approximately USD46.27 x 5.0 lot size = USD231.35 of daily positive swap value which if left to run for a year or 365 days = USD84,442.75 = 844.42% increase from Starting Account Deposit from positive swap alone.

As is obvious from the above example, that's humongous profits especially when compared to what banks would give us for our fixed deposit. And the best part is that we do not have to do anything from that point onward but wait for the trading account to run for as long as we like without fear of the trading account going into margin call and stop-out.

Yes I did take quite a number of short EUR/USD trades on one of my live trading account but burned the account due to over-trading (so what else is new!).
However I quickly re-started the burned-out trading account with a pretty small deposit and has managed to maintain that account with good money management which has grown quick significantly.
If I managed to continue practicing controlled trading with good money management on that "small" trading account over the space of 2-3 months from now, I plan to publish the results here at the FPA to demonstrate that good money can be made from the forex market with a relatively small deposit.

It is my hope that someone here can be inspired enough to consider Carry Trades over the more normal type of trading strategies.

Cheers and all the best!
 

RahmanSL

Major
Messages
2,536
20k, it is indeed a good amount of investment for a retail trader like me. so I will start actually standard trading accounts with some reliable, regulated and experienced broker that can ensure me capital preservations, flexible yet very customer friendly trading services. And without any doubt, my ultimate objectives will be both capital preservations and additional income from the invested capital. How much profit I can be able to earn is greatly dependent on how well I am able to mange my funds.

Nevertheless, most importantly, I think yearly plan is somehow very much complicated since forex is a highly uncertain and unpredictable market place. Sometime, we even don’t know what will happen tomorrow. So, how can we plan for the entire year actually?
Hi Ross...thank you for your input.

How can we plan for the entire year? Well read my above on Carry Trades which might give you some additional trading strategy to consider.

For me, every month we should add some more money into our main trading account....yah, like monthly deposits into our bank savings account....make some trades whenever we can or see trading opportunities or in the case of Carry Trades just to increase the trading account and add-on some more open positions for the daily positive swap.
If we can control our emotions and curb our "gambling" instinct, making money from the forex market should be relatively simple and straight forward.

Cheers and all the best!
 

Qasim waqar

Private, 1st Class
Messages
40
I would be happy to get 10% profit monthly on 20K account. Ofcorse you cannot aim for 10% in all months as there will be losing months as well. In some months we will be getting 30% profit so the average 10% should be a good target.
 

RahmanSL

Major
Messages
2,536
I would be happy to get 10% profit monthly on 20K account. Ofcorse you cannot aim for 10% in all months as there will be losing months as well. In some months we will be getting 30% profit so the average 10% should be a good target.
If you are happy-happy with 10% per month then perhaps you should consider the below Carry Trade strategy

Screenshot1 7-July-2018.jpg

That DEMO account was started 15 & 22-June-2018 and at end of trading day yesterday, 6-July-2018, the daily positive swap/interest totals USD4,678.71 or around 46.78% of Deposit and with USD17,821.18 profit or around 178.21% increase over Deposit.
As mentioned earlier above, if you are happy-happy with 10% profit per month, then the total profits (should you chose to close all trades) would equate 17.8 months of your target profits without you having to do any more trades.
 

RahmanSL

Major
Messages
2,536
Oh, ok… sure never use SL’s myself, when hit it’s a gift for the Broker, in my case I know it’s Greed ;)

ST should be set for day Trading and especially if you cannot attend to your trading platform....also makes it that much less painful then actually seeing how much that mistake cost.
 

Whitesnake

Corporal
Messages
428
$20,000 is a decent money to get started in the forex market and probably i would be more than happy to make anything above 20-30% per year in the current situation. When i was a newbie i always thought of doubling the account every single month but only blown my accounts.
 

oscarra

2nd Lieutenant
Messages
1,220
Very true ! 20 to 30 % in your pocket, is already an excellent yearly performance, even investing in most hot hedge funds you will never see such returns, besides on the paper, one year it may be plus 50 % next year it might hit minus 150% :eek: not even mentioning the fees
 
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