Is 3%-5% gain good for a track record of 2yrs? | Forex Factory

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Attachments: Is 3%-5% gain good for a track record of 2yrs?
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Is 3%-5% gain good for a track record of 2yrs?

  • #1
  • First Post: Mar 14, 2017 4:05am Mar 14, 2017 4:05am
As per title, is this type of performance good? Broker is regulated..
  • #2
  • Mar 14, 2017 10:25am Mar 14, 2017 10:25am
2 years only 5%? So, 2.5% per year?
if so, its not good, But better than losing.

Quoting empire177
As per title, is this type of performance good? Broker is regulated..
  • #3
  • Mar 14, 2017 10:40am Mar 14, 2017 10:40am
Quoting antonsatu
2 years only 5%? So, 2.5% per year? if so, its not good, But better than losing. {quote}
Sorry.. monthly gain of 3-5%
  • #4
  • Mar 14, 2017 10:46am Mar 14, 2017 10:46am
Quoting empire177
{quote} Sorry.. monthly gain of 3-5%
At 3% gain per month compounded, your account would double in 2 years. Keep that up and a $1000 account turns into $1,000,000 in twenty years.

GREEN pips to one and all.
  • #5
  • Mar 14, 2017 2:45pm Mar 14, 2017 2:45pm
Monthly gain of 3-5% is very good! We are talking in rang of the best forex traders. But realistic goal with small account if you know how to trade. Things get complicated when you hit 200K mark. Your leverage gets reduced. No bucket shop is willing to give you as high leverage as before and you're too small to go to investment bank. If you're a scalper, it becomes a big problem. Lower leverage means slower growth of your equity.
  • #6
  • Mar 14, 2017 2:49pm Mar 14, 2017 2:49pm
Quoting empire177
As per title, is this type of performance good? Broker is regulated..
With what drawdown?
"Men Who Can Both Be Right & Sit Tight Are Uncommon" ~ Jesse Livermore
  • #7
  • Mar 14, 2017 3:06pm Mar 14, 2017 3:06pm
My aggressive MM trading account is showing that 5 % monthly can be done easily. But I wouldn't trade this way with investor's money involved. 13,9 % drawdown is too high for most people to handle. I try to be conservative and stay under 5 % drawdown, which gives more modest results but less volatility to equity curve.
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  • #8
  • Mar 15, 2017 3:55am Mar 15, 2017 3:55am
Quoting RondaRousey
2-3% in 2 years means you are on the right track and better than most traders on FF. So good on you. But does it rank you among the top traders? No.
Hmmm. I disagree - a 2-3% return is not only on the right track..Its bang on if the drawdown remains in the 5-10% range (ideally 5-7%).

This sort of performance would attract significant investor capital if marketed properly under the right 'umbrella'.

  1. 3% pcm compounds to 42.58% per year
  2. 5% pcm compounds to 79.59% per year


If a trader can achieve that consistently they are up there with the greatest Market Wizards in history.

Very few can demonstrate these sort of stats over 24 months or longer..Very very few

  • #9
  • Mar 15, 2017 7:21am Mar 15, 2017 7:21am
Quoting Tom81
My aggressive MM trading account is showing that 5 % monthly can be done easily. But I wouldn't trade this way with investor's money involved. 13,9 % drawdown is too high for most people to handle. I try to be conservative and stay under 5 % drawdown, which gives more modest results but less volatility to equity curve. {image}
Hope you don`t mind me asking but what do you do when you exceed the 5% drawdown ? quit trading ?
Trade
  • #10
  • Mar 15, 2017 7:36am Mar 15, 2017 7:36am
Quoting Tom81
Monthly gain of 3-5% is very good! We are talking in rang of the best forex traders. But realistic goal with small account if you know how to trade. Things get complicated when you hit 200K mark. Your leverage gets reduced. No bucket shop is willing to give you as high leverage as before and you're too small to go to investment bank. If you're a scalper, it becomes a big problem. Lower leverage means slower growth of your equity.
I'm curious about this - couldn't you just open up multiple accounts and set up an MT4 signal to run them all at the same time?
  • #11
  • Mar 15, 2017 8:27am Mar 15, 2017 8:27am
Quoting FXClarity
{quote} Hmmm. I disagree - a 2-3% return is not only on the right track..Its bang on if the drawdown remains in the 5-10% range (ideally 5-7%). This sort of performance would attract significant investor capital if marketed properly under the right 'umbrella'. 3% pcm compounds to 42.58% per year 5% pcm compounds to 79.59% per year If a trader can achieve that consistently they are up there with the greatest Market Wizards in history. Very few can demonstrate these sort of stats over 24 months or longer..Very very few
Lol you have no power over DD. one year may be 10%, another may be 30%.. s**t happens!

According to my findings.. the higher the return, the higher the DD.
  • #12
  • Mar 15, 2017 8:52am Mar 15, 2017 8:52am
Quoting HeyYou
{quote} Lol you have no power over DD. one year may be 10%, another may be 30%.. s**t happens! According to my findings.. the higher the return, the higher the DD.
Yes its usually the case that the higher the return the higher the drawdown..that's very basic stuff and simple math.

A marketable strategy for the purpose of attracting serious investor capital is one that maintains a drawdown of under 10% and a return above 1.5% pcm...this is not my view but one that is touted across the investment landscape.
  • #13
  • Edited 9:24am Mar 15, 2017 9:08am | Edited 9:24am
Quoting Arnoud
{quote} Hope you don`t mind me asking but what do you do when you exceed the 5% drawdown ? quit trading ?
Chance of hitting 10 uninterrupted back to back losses in a row over 100 taken trades for my system is not marginal 15.7%, so I have to adjust size of my positions accordingly. When trading clients money I risk only max 0,5 % capital per position, when trading countertrend moves (lower RR ratio/higher win rate) and max 1 % per position when trading in the direction of the main trend (higher RR ratio/lower win rate) and never exceed more than 5 % risk per capital on all open trades which must have low correlation index between them (so you don't effectively hedge trades or multiply risk exposure per position). This way I have achieved max drawdown around 5 % in 5 year run. It all depends on your RR ratio and win rate to calculate position size that will give you acceptable maximum drawdown. This simple calculation can help you determine probability of losing streaks so you can manage position size more effectively to limit your max drawdown http://completecurrencytrader.com/to...ty-calculator/
  • #14
  • Mar 15, 2017 9:21am Mar 15, 2017 9:21am
Quoting TmhwkTrades
{quote} I'm curious about this - couldn't you just open up multiple accounts and set up an MT4 signal to run them all at the same time?
They don't care how much accounts you have, they care about their exposure. If they don't hedge your relatively big positions they are highly exposed (they should hedge, but sometimes they obviously don't). If something like CHF, GBP event happens again, unprotected bucket shop on high margin could go broke, so they limit your max margin instead.
  • #15
  • Mar 15, 2017 9:53am Mar 15, 2017 9:53am
Quoting Tom81
{quote} Chance of hitting 10 uninterrupted back to back losses in a row over 100 taken trades for my system is not marginal 15.7%, so I have to adjust size of my positions accordingly. When trading clients money I risk only max 0,5 % capital per position, when trading countertrend moves (lower RR ratio/higher win rate) and max 1 % per position when trading in the direction of the main trend (higher RR ratio/lower win rate) and never exceed more than 5 % risk per capital on all open trades which must have low correlation index between them (so you...
Interesting thank you bookmarked the page .
Trade
  • #16
  • Edited 11:11am Mar 15, 2017 10:28am | Edited 11:11am
Quoting FXClarity
{quote} Yes its usually the case that the higher the return the higher the drawdown..that's very basic stuff and simple math. A marketable strategy for the purpose of attracting serious investor capital is one that maintains a drawdown of under 10% and a return above 1.5% pcm...this is not my view but one that is touted across the investment landscape.

You can try to limit the damage, but in the end the market decides.
  • #17
  • Mar 16, 2017 5:50am Mar 16, 2017 5:50am
Quoting michisuperfr
{quote} With what drawdown?
DD of 13.66% based on myfxbook
  • #18
  • Mar 20, 2017 8:10am Mar 20, 2017 8:10am
Quoting Tom81
My aggressive MM trading account is showing that 5 % monthly can be done easily. But I wouldn't trade this way with investor's money involved. 13,9 % drawdown is too high for most people to handle. I try to be conservative and stay under 5 % drawdown, which gives more modest results but less volatility to equity curve. {image}

That's a very nice performance dude
  • #19
  • Mar 20, 2017 4:32pm Mar 20, 2017 4:32pm
You got to say that a lot depends upon your investment. I mean 2/3% can be very cool with 10-20k investment, but it might not mean too much with 1-2k, so size of investment is what makes the difference. However, if anyone is starting up and in his first 2 years he is able to get 30/35% gain for the year. I would say hats off! It's massive thing even with low investment.
  • #20
  • Mar 21, 2017 2:49pm Mar 21, 2017 2:49pm
Quoting empire177
{quote} Sorry.. monthly gain of 3-5%

Sounds very good. Mine is just over 6% since December 2015.

What is your maximum drawdown from peak as a %?
I live entirely from the growth of my personal trading account
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