Hi, I'm new to this forum, but I have been reading through a lot of posts. In regards to this topic, I think the percentage is all relative to what you're basing it off of. If you're basing it off the actual money in your account, and you don't have a huge trading account, then of course your percentages are going to be higher. But that's because you're using leverage. I think that people who have $10,000,000+ trading accounts are either not using as high of leverage or not using any at all. 1 lot in a forex trade is worth $100,000. If you were to base your percentage off of the actual amount that you traded (meaning the value of each lot), I bet you would find the percentages you are earning to be much less.
A small example: Let's say you had $10,000 in your account, and you had a good trading strategy and turned that into $40,000 in one year using 1 lot per trade. You could say that you've made 300% profit basing it off of the original $10,000. However if you base it off of $100,000, the size of 1 lot (what you were using on every trade), well now you've only made a 30% profit for the year. And if you were to base it off of the total amount traded, let's say you opened 100 trades throughout the whole year meaning you traded a total of $10,000,000($100,000 x 100). Based off of that, you only made 0.3% profit for the whole year.
I think that professionals and fund managers who have trading accounts with $10,000,000+ are basing their returns on either the average number of open lots per trade for the year, or off of the total amount traded. Those are my thoughts on the subject.
A small example: Let's say you had $10,000 in your account, and you had a good trading strategy and turned that into $40,000 in one year using 1 lot per trade. You could say that you've made 300% profit basing it off of the original $10,000. However if you base it off of $100,000, the size of 1 lot (what you were using on every trade), well now you've only made a 30% profit for the year. And if you were to base it off of the total amount traded, let's say you opened 100 trades throughout the whole year meaning you traded a total of $10,000,000($100,000 x 100). Based off of that, you only made 0.3% profit for the whole year.
I think that professionals and fund managers who have trading accounts with $10,000,000+ are basing their returns on either the average number of open lots per trade for the year, or off of the total amount traded. Those are my thoughts on the subject.
Making my living one pip at a time.....