5% Growth a month? | Forex Factory

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5% Growth a month?

  • #1
  • First Post: Edited Mar 5, 2018 5:24pm Mar 4, 2018 8:06am | Edited Mar 5, 2018 5:24pm
Hello,

I have been trading off and on for a couple of years now (all while making a little profit). Recently I got into trading price action after reading Naked forex (a worth while read).

I try and keep it really basic and only trade from daily / weekly S/R along side a couple of candle confirmations (engulfling/kangaroo tails) on a min of 4hr and Daily charts. I use no indicators.

So far I have logged the last 3 months in demo and I have manged to grow my account just over 5% a month. I risk no more than 2% of my 5k account (£100) and average 60-70 pips a good trade. I would say my win rate is around 70% so far. I trade around 15 FX pairs.

Basically I want to know if I am on the right track. Is 5% a month good to aim for?

Thanks,

Jack
  • #2
  • Mar 5, 2018 9:42am Mar 5, 2018 9:42am
Anyone?
  • #3
  • Mar 5, 2018 9:54am Mar 5, 2018 9:54am
hey. i would suggest to control your maximum drowdown. if you have 3to 5% DD and make 5% monthly it's far better than having 20%DD and making 10%.and if you have consistently every month 5%, it's really good result. but i wouldn't consider 3 month results to make conclusions. if you let's say end up 12 months positive, and every month have 5% profit vs maximum 5%DD, only then i would count it a brilliant result.
just 2cents
  • #4
  • Mar 5, 2018 10:05am Mar 5, 2018 10:05am
Quoting jacobrownoly
Hello, I have been trading off and on for a couple of years now (all while making a little profit). Recently I got into trading price action after reading Naked forex (a worth while read). I try and keep it really basic and only trade from daily / weekly S/R along side a couple of candle confirmations (engulfling/kangaroo tails) on a min of 4hr and Daily charts. I use no indicators. So far I have logged the last 3 months in demo and I have manged to grow my account just over 5% a month. I risk no more than 2% of my 5k account (£100) and average...
without speaking about anything trading, if you are making 5% per month regularly that is awesome. Ask a bank to give you 5% return lol.

Don't be greedy but maybe you can try to improve your return but that is good....
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #5
  • Mar 5, 2018 10:24am Mar 5, 2018 10:24am
zero DD is a good goal to set
  • #6
  • Mar 5, 2018 10:38am Mar 5, 2018 10:38am
5% a month account growth as a target is imho realistic and achievable, however, I’d be concerned if you were risking 2% per trade to achieve it, with a win rate of 70%, something not quite right there.

Quoting jacobrownoly
Hello, I have been trading off and on for a couple of years now (all while making a little profit). Recently I got into trading price action after reading Naked forex (a worth while read). I try and keep it really basic and only trade from daily / weekly S/R along side a couple of candle confirmations (engulfling/kangaroo tails) on a min of 4hr and Daily charts. I use no indicators. So far I have logged the last 3 months in demo and I have manged to grow my account just over 5% a month. I risk no more than 2% of my 5k account (£100) and average...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #7
  • Mar 5, 2018 1:39pm Mar 5, 2018 1:39pm
Quoting jacobrownoly
Hello, I have been trading off and on for a couple of years now (all while making a little profit). Recently I got into trading price action after reading Naked forex (a worth while read). I try and keep it really basic and only trade from daily / weekly S/R along side a couple of candle confirmations (engulfling/kangaroo tails) on a min of 4hr and Daily charts. I use no indicators. So far I have logged the last 3 months in demo and I have manged to grow my account just over 5% a month. I risk no more than 2% of my 5k account (£100) and average...
Hi Jack,
I've been daytrading for a few years now and achieve about 5% pcm on long term average but I'm not sure that one statistic has much validity on its own. How I get it is from a consistent small edge on a lot of trades: about 60 trades per month, average 55% success rate, risking 1% of the account per trade with an achieved average reward:risk of about 1:1. I very rarely get a drawdown in double digits.

You do it in a somewhat different way, 2% risk and 70% success rate. I imagine you trade a lot less frequently than I do and I've no idea what your average R:R or drawdown profile might be from the info given. To get a proper assessment of how solid your system is, you'd need to analyse it with all these relevant statistics together.

The other thing you need consider is what might happen to you, emotionally speaking, when you start doing it with real money. It all feels quite a lot different then and pretty much everyone does better in demo than live trading. So, I'd make sure you are 100% comfortable with what you are doing before you go live on it, make sure both you and your method could comfortably handle the worst market scenario and the worst string of losing trades you can conceive of - because it is almost certainly bound to happen to you! Aside from that, good luck!
  • #8
  • Mar 5, 2018 2:32pm Mar 5, 2018 2:32pm
Good points, well made. Sound advice. Pay attention campers, this man trades, correctly...

Quoting marcmarc
{quote} Hi Jack, I've been daytrading for a few years now and achieve about 5% pcm on long term average but I'm not sure that one statistic has much validity on its own. How I get it is from a consistent small edge on a lot of trades: about 60 trades per month, average 55% success rate, risking 1% of the account per trade with an achieved average reward:risk of about 1:1. I very rarely get a drawdown in double digits. You do it in a somewhat different way, 2% risk and 70% success rate. I imagine you trade a lot less frequently than I do and I've...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #9
  • Mar 5, 2018 3:00pm Mar 5, 2018 3:00pm
Drawdown doesnt matter as long as it doesnt wipe your account/hit margin call; drawdown its a measure of "fear to lose a trade" wich its meanigless and useless in practice..

And 2% per trade and 70% win rate?? and you say you "average 5% per month" ?? you didnt make the math like you should OR something else its "fishy" at best..


And YES 5% its an easy target per month (honestly its a bit low) AND with a TRUE edge, you can tune the sl/tp targets to boost the win rate and risk more than 5% PER TRADE with no problems at all

but very few people knows what a true edge means.. and almost everyone (myself included sometimes) its more afraid to lose money (personal insecurities and trading/knowledge derivated) than making money
  • #10
  • Mar 5, 2018 3:07pm Mar 5, 2018 3:07pm
If it will be continue monthly 5% * 12= 60% yearly , really it's not below industry standard , it's so good keep it up .
Best of luck
stay green .
Regard NOOR16
  • #11
  • Mar 5, 2018 4:06pm Mar 5, 2018 4:06pm
Jeezus, just when you think (for once) a thread only might contain sanity and avoid the attack of the delusionals...

Quoting havo
Drawdown doesnt matter as long as it doesnt wipe your account/hit margin call; drawdown its a measure of "fear to lose a trade" wich its meanigless and useless in practice.. And 2% per trade and 70% win rate?? and you say you "average 5% per month" ?? you didnt make the math like you should OR something else its "fishy" at best.. And YES 5% its an easy target per month (honestly its a bit low) AND with a TRUE edge, you can tune the sl/tp targets to boost the win rate and risk more than 5% PER TRADE with no problems at all but very...
"The meek shall inherit the earth.." Yeah right, good luck with that shit..
  • #12
  • Mar 5, 2018 4:23pm Mar 5, 2018 4:23pm
Hey guys.
Can someone explain to me in detail how DD works and how do you know if it's say 5% or more or whatever and how does it affect a trade or long term trading account?

regards
  • #13
  • Mar 5, 2018 4:27pm Mar 5, 2018 4:27pm
Quoting Spreadbetter
Jeezus, just when you think (for once) a thread only might contain sanity and avoid the attack of the delusionals... {quote}
I stopped taking FF seriously long ago
  • #14
  • Edited 5:13pm Mar 5, 2018 4:59pm | Edited 5:13pm
Quoting paulosss66
Hey guys. Can someone explain to me in detail how DD works and how do you know if it's say 5% or more or whatever and how does it affect a trade or long term trading account? regards
Hi pauloss66,
In detail would take a while and risk boring everyone senseless but I'll try a summary. Drawdown is a measure of how far your account falls from the last account high to the low before you get back to the old high again. So, if your account topped out at £1,000 then dipped to £900 before recovering to £1,000 again, you've had a 10% drawdown. The exact same principle applies to the drawdown experienced in an individual trade, though here it is often called maximum adverse move or excursion.

The importance of it for your account is in affecting your ability to easily recover. If you have a 10% drawdown - £1,000 down to £900 as in the example - you only need an 11% gain to get back from £900 to £1,000 again. Perfectly achievable. But if you were down 50% to £500 you need to double the account from there, 100% gain, just to get back to £1,000 again. This is not likely, especially if you also factor in how you will be feeling when half the money has gone.

For an individual trade, drawdown/adverse excursion affects how close or far away you need to put your stops. If your trades typically need a lot of wriggle room to come right eventually then you need the stops a long way away, and this in turn affects how big you can trade. You have to trade in smaller size here than for an identical account with an identical risk profile taking trades with closer stops. For example, if your individual trade risk tolerance is 1% of a £10,000 account, i.e. £100 cash risk, and your trades need 100 points of room then you have to trade at £1/pt. But if your stop is just 20pts away then you can play at £5/pt, 5x larger, for exactly the same cash risk to your account.

So, drawdown considerations are important, both financially and psychologically speaking and you should think about this element carefully when designing a trading method/system. Hope that helps.
  • #15
  • Mar 5, 2018 5:04pm Mar 5, 2018 5:04pm
Quoting marcmarc
{quote}
Attached Image
  • #16
  • Mar 5, 2018 5:04pm Mar 5, 2018 5:04pm
Risk/Reward is personal. Find whats right for you! Only you can find your correct goals.
(If you had said 5% a day.. I'd think maybe your being a little greedy.)
The only system that will work is one designed by and for yourself.
  • #17
  • Mar 5, 2018 5:08pm Mar 5, 2018 5:08pm
Quoting marcmarc
{quote} Hi pauloss66, In detail would take a while and risk boring everyone senseless but I'll try a summary. Drawdown is a measure of how far your account falls from the last account high to the low before you get back to the old high again. So, if your account topped out at £1,000 then dipped to £900 before recovering to £1,000 again, you've had a 10% drawdown. The exact same principle applies to the drawdown experienced in an individual trade, though here it is often called maximum adverse move or excursion. The importance of it for your account...

Yes I understand that now, perfect reply, thanks for the information everyone
  • #18
  • Mar 5, 2018 5:21pm Mar 5, 2018 5:21pm
Quoting marcmarc
{quote} Hi Jack, I've been daytrading for a few years now and achieve about 5% pcm on long term average but I'm not sure that one statistic has much validity on its own. How I get it is from a consistent small edge on a lot of trades: about 60 trades per month, average 55% success rate, risking 1% of the account per trade with an achieved average reward:risk of about 1:1. I very rarely get a drawdown in double digits. You do it in a somewhat different way, 2% risk and 70% success rate. I imagine you trade a lot less frequently than I do and I've...

Hi Marcmarc,

Many thanks for your in-depth reply, I really appreciate it.

In regards to R:R I risk 100 pips to make around 60-70pips using price action on the 4hr/day chart when to get out or continue. I like to tried and take small but consistent profits. I have only been doing this for 3 months, logging every trade and each month I have been around the 5-6% growth. I know its still early days thought. I plan to demo trade for 6 months then open up a live one.

Out of interest what time frames fo you like to use?

I will keep you posted.

Regards,

Jack
  • #19
  • Mar 5, 2018 6:14pm Mar 5, 2018 6:14pm
I can't talk about the trading itself (as I am rubish at it), but as numbers go, if you keep this average of 5% a month, you will get up very fast (even if "fast" is different for everyone).

Start with your "small" $5000 account, compound it at the end of each year (60% growth per trading year, as said compound at the end of each year, not even each month, and don't ever add any money in that exemple), and see where you are in 10 years ($550.000, which means that you would make $330.000 a year before tax if you choose to enjoy life and stop growing the account at that moment) or 15 years ($5.760.000, which is $3.456.000 a year before tax... now we are talking lol ).

Start with $10.000 and it is faster, start with $20.000 and even faster etc... you get the idea of compounding.

Seriously, I just give these down to earth, a bit stupid exemples (everyone's life and goals are different) to show what it means to make 5% a month / 60% a year consistently.
It is HUGE!!

It would just be mind blowing (at least to me...), and there must be a looooooot of very rich people on Forex Factory that can make way more than 5% a month consistently... and YES they are so bored with life and their montains of money that they have to lose their time chating with losers like me on this forum, showing off how good they are at making money trading.
It completely makes sense and looks legit.

Anyway, back on track, the only "little" problem is that you have to keep the consistency... and from my very modest experience having a good look around, it is just not that easy, like really really really not easy at all for a loooot of "real" people unfortunately for us all :0)

And by the way, if you do not have the "real" money to start the account, don't worry if you can keep the 5% per month, within a year (probably a lot less) people with money will knock at your door, so that you trade their money and keep around 25% (to be discussed in the contract) of the growth.

All the best, and good luck in your journey.
Cheers,
J-F
PS: if you search quite deep in Forex Factory you will find some "real" journey of individuals. Only a very few, but it is worth searching deep as I personaly find it very instructive.
  • #20
  • Mar 5, 2018 6:27pm Mar 5, 2018 6:27pm
The question is what is that 5% is that for living or just for trading? You have to consider each scenario on how you can achieve that because most of the time we fail to do it because we are GREED enough and we are not contented with that return. If you say you have $10K capital will probably is more than enough but if u have $100 capital then i don't think it's enough.

But making 60% a year in a 5% consistent return per month is quite impressive and only few can make it to the end..just control your risk to avoid getting wipe out.

Good luck brother!

Stay profitable...
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