Full time trader: Profit vs Maximum DD | Forex Factory

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Full time trader: Profit vs Maximum DD

  • #1
  • First Post: Edited 5:37pm Feb 24, 2011 5:12pm | Edited 5:37pm
Hi,

If everything goes like I expect I'll re-try a live account, and I'm expecting that this will be one of the last steps before I achieve my dream of being a full time trader.

I think that probably sometime in the next 2 weeks I'll re-fund my micro-account in order to test with real money what I've been doing with my demo accounts.

I opened this thread because I'm a bit curious of the rtio between Profit and Maximum Drawdown that full time traders are achieving. Since the 19th January until now I achieved a profit of 43,75% with a maximum DD of 5,59%.

My question is: Is this good? Is it enough, or should I try to lower even more the DD? What kind of figures are full time traders getting?

Please join this discussion and, if you want to follow my journey from newbie to full time trader you can do it following my journal:

http://www.forexfactory.com/showthread.php?t=202530

I'm also using a forexfactory trading analysis tool, where you can check a lot of stuff in my page:

http://www.forexfactory.com/jfonseca

Good trades to everyone,

J Fonseca
  • #2
  • Feb 24, 2011 8:38pm Feb 24, 2011 8:38pm
It all depends on the size of your account. If you are trading $15 million plus you should be earning 2% per month. If you are trading less than $100,000 you should be earning 6% to 8% per month.
  • #3
  • Feb 25, 2011 6:08am Feb 25, 2011 6:08am
Quoting JFonseca
Hi,

If everything goes like I expect I'll re-try a live account, and I'm expecting that this will be one of the last steps before I achieve my dream of being a full time trader.

I think that probably sometime in the next 2 weeks I'll re-fund my micro-account in order to test with real money what I've been doing with my demo accounts.

I opened this thread because I'm a bit curious of the rtio between Profit and Maximum Drawdown that full time traders are achieving. Since the 19th January until now I achieved a profit of 43,75% with...
haha, a profit and maximum DD figure of only one month? Doesn't mean anything. Maybe next month you have a loss and a large drawdown.
You need more data.
  • #4
  • Feb 25, 2011 6:57am Feb 25, 2011 6:57am
the greater their potential return can be.

Got that indispensable advice from this pdf which I think you should peruse

http://www.forexfactory.com/showpost...6&postcount=71

it talks about this exact discussion on DD and Return and the ability to withstand such DD to get to the returns we desire.

Enjoy
  • #5
  • Feb 25, 2011 6:59am Feb 25, 2011 6:59am
Quoting Custos
haha, a profit and maximum DD figure of only one month? Doesn't mean anything. Maybe next month you have a loss and a large drawdown.
You need more data.
I completely agree with Custos. One month is not nearly enough data to implement a trading plan. From the data presented so far I must assume that you are trading intraday. You will need at least 4-5 years of intraday data to base you profit vs drawdown scenario.

Also keep in mind the kind of market we've had over the last month. It has been ranging and very choppy. How will your method do when the market breaks out and trends?

Bottom line, IMHO, you need more data before you make any conclusions about your method.
  • #6
  • Last Post: Mar 9, 2011 5:22pm Mar 9, 2011 5:22pm
Quoting gspajon
I completely agree with Custos. One month is not nearly enough data to implement a trading plan. From the data presented so far I must assume that you are trading intraday. You will need at least 4-5 years of intraday data to base you profit vs drawdown scenario.

Also keep in mind the kind of market we've had over the last month. It has been ranging and very choppy. How will your method do when the market breaks out and trends?

Bottom line, IMHO, you need more data before you make any conclusions about your method.
Agreed. I'm not pro but I know that you need 2-3 years+ of data to prove whether your stats are really good. What % are you risking per trade? How Many trades at a time? All of these things add up.
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