Realistic Monthly Trading Profit?

Hey guys,

Its been almost 20 days since I've been trading and I was wondering what would be a realistic/ideal monthly percentage profit? Cheers.

-100%

I made 66% so far, but i know thats due to recent volatility. Thus looking for average gains data.

You absolutely, as a new trader (even if you're experienced), have to remove your mindset from real money/percentage targets. It is dangerous, and you will fail very likely. Think of your account as an entity which doesn't like being told/suggested what to do - instead, think of it as an entity which will do what it can WHEN the opportunity presents itself. Since market is a live beast, if you set a real monthly/weekly or any other goal, you may not be in the opportunity to get it that month/week etc - therefore you will inadvertently change your system/strategy in order to meet your goal - by doing that - well...that's the reason such a large number of us retail traders fail.

Thank you for the advice. I might have phrased the question wrongly. I was more looking for profitable traders' data. While they might not base their strategy on such a fallible system, they will nonetheless have recorded monthly losses/profits. So I was looking for these data.

If you can average anything around 10% monthly or above it is excellent.

I have stats for one conservative method on multiple pairs that is around that level.

But, as i think DemoAntares was trying to point out, it's actually not a relevant question, and it will do you no good to hear what thousands of people get as an average.

1st, because most people are losing long term. plenty of heroes doing 150% per month...but in 6 months they have no account. If it was ever live!
I would politely suggest for you to do 66% in 20 days on an account is unsustainable. The drawdowns are proportional to gains in any method, and (assuming it's not a $200 account where min lot sizes impact your results) it sounds like you're taking too much risk.

2nd, because it will fool you into thinking you will get this every month. As DemoAntares said, having a quota of any kind will put undue pressure on you.
In averaging 10% monthly with any method, you'll have 20% months, 5% months, -10% months...it's not linear.
Averages are deceiving because depending on your method you could either have a smooth steady ride, or a roller coaster of ups and down to get you that average 10%. But you can only ever take what the market gives from the method you use.
Force it, and you will lose it all, or end up chopping and changing methods at the slightest under performing month.

As you trade more, and with more capital you'll soon decide what is tolerable as a drawdown for you. 40% may be acceptable right now, but you'll need to ask yourself if your system is then the most efficient way to average 10%?
I know mine changed dramatically after the 1st 2 years. I don't want roller coasters anymore. My max DD in the last 2 years with that one is 7%. That is acceptable to me in this.

The average monthly revenue, about 99.99% of all traders generate, traders who do not work for a bank or some fund, is around -15%. Every six months or so, they lose THE LAST DEPOSIT made into their account. Every LP knows that simple fact of trading...

Only few traders differ from the crowd. Like one in ten thousand or something. Some of these Magicians, I call them, even make 40% (and) over each month.

Thanks for the advice! In terms of drawdowns, I have been very conservative. My net profit is 66%+ (around 2000+) but my max drawdown is 2.93%.

are you running an EA or manual trading ?

Manual.

These are my trading stats for Jan.

Is that a real account or a demo account? If it is a real account that looks like a very fine job so far. However you need to be careful. Once more money is involved your emotions will play a bigger part too. You need to ask yourself if you can still hold on to your plan with discipline when things go bad for a few days or even weeks.

Thanks. Its a real account. Started with 3000. My problem is finding more funding so that I can benefit from less pips.

Mate, if that's a real account, and you are gaining at that rate....with so little DD..then funding won't be an issue in a very short time! Another 3 months at your rate and you'd be over $20k.
You sure you're not here to solicit clients?

Yea, its real. Just made another 400 today from GBP/USD movement. Max DD 2.17%.
You're right, I'm digressing haha. But no clients, no nothing.
Anyways, I don't change my base trading size. So even now, my max trading size is 0.5 lot, which is already rare for me. I'm hoping to adjust to 1 lot per trade, which would make things much more favourable.

Depending on your method, and potential for DD, using 1 lot per trade may not turn out so great You have remarkably low DD for such huge gains.
I've been trading for 6 years and not seen such a ratio. More power to you if you can maintain it, but if it turns out your method and MM are just encountering good conditions, you will likely have issues going forward.

Of course, I'm just generalizing. I don't know your method. Just saying...if you can pull this off regularly...you'd be on the top 1% of the top 5%!
Statistics say for a new trader, this would be highly unlikely.

Not trying to be negative..just saying.

I'll definitely second T34's words here... a sample size of 4 weeks is nowhere near enough to properly assess a trader's long-run profitability but those statistics are absolutely exceptional. I had to look twice at that stats screenshot to make sure it was real... I just hope for your sake that you have the emotional control to reign yourself in when times aren't so good. The difference between a good trader and a master often comes down to how well you can deal with losses.

Interestingly enough I target an average monthly gain of 10% as well. I find it challenging enough to be push me just a little out of my comfort zone, but not so much that I feel overwhelmed (and by extension that I need to over-trade in order to achieve said goal). My experience definitely backs up what has already been said about average monthly gains, my worst month in 2015 was over -10% and my best was more than +10% but the average is what you work towards. One of my main goals for 2016 is to reign in my equity variance such that my average remains consistent but my losses are smaller; hopefully not at the detriment of my profitable months.

At the end of the day your target needs to be obtainable even if it is ambitious. Over-trading will turn you onto the fast lane to a blown up account. Keep up the great work though mate!

Mike

You guys give great advice. I do also think much of the profit made last month must be volatility adjusted. Indeed BOJ announcements don't happen every month. My low DD is due to excellent entry points. Right now my exit points can be around 33% to 50% off.

You're asking the wrong question, Forex Author...The right question is, for how long can you keep your average monthly return? If you're in for the long-term and want to make money in Forex on an annual basis, it's better to think of a small monthly return percentage to make sure you'll be achieving your target...It depends on your trading style, capital and leverage..etc but try to keep a monthly target of 5%, if you can keep returning 5% per month for like 3-4 years( compounding profits), you'll be more than happy at the end of your journey, just make sure that you're not risking too much of your account to get those 5%

I think the best option would be just keep on going for it.Trading has its own up and down.So just keep on.Take your profit and restart from your base if you are too scared.I have read a lot and learned a lot to say just keep trading and do not care about how much you should get.The idea should be when do u want to stop.