I have a trading strategy that yields 8% per month. I’ve conducted a backtest over the past two years (2022-2023), and every month has shown positive results, with a minimum gain of 8% and a maximum of 22%. The maximum drawdown was -4% over the two years. The strategy has a 45% success rate, but I’m not feeling very confident. I watch videos where people have more successful strategies than mine. It’s a strategy that doesn’t involve any technical analysis or indicator on the Nas100 index. I simply place my order and go to sleep. The risk-reward ratio is 1:3. I’m a beginner, so I wanted to know if these statistics are good or bad. Thank you.
This is a fine performance. A risk:reward ratio of 1:3 is ambitious, so it’s not surprising you have a win rate lower than 50%. If you leave your profits in the account your will double your capital every year.
Whether this is sustainable or the work-load is manageable or thether this demands multipls simultaneous positions or the risk is too high or there is a bad catastrophe risk - these are other questions - without giving away full details, just what style of trading does the strategy follow?
This is where OP’s thread went off the rails.
A lot of folks out there would kill for a half of that. How much do you want… 2000 percent?
I’m new at trading, thats why I ask the question…
I cant show my strategy here?
Every expert was once a beginner, so believe in yourself and in all that you are. Understand that there is something within you that is greater than any obstacle.
I think you should be able to. But there are some restrictions for new members, though. On second thought, I don’t have any advice for you after all.
Best of luck.
The result is amazing. I would love to have this myself. 8% per month and 96% annually. Doubling the overall equity every year.
I think these results are very good. The strategies I’ve shared don’t have returns this high. Could I privately message you to ask for some advice?
8% per month is a lot more than 96% per year. More like 150%
More like 250% actually, compounding only once per month.
But nobody’s returns are as steady as this.
Not to mention quiet August, winter holiday period, etc.
Anyway there is no such thing as a system with a long term 1:3 risk to reward and a 45% winning rate, is either deluded or spam.
Ah, with compounding?
Absolutely agree. As a rough estimate, I’d say a r:r of 1:3 is going to give about a 10% win rate.
Technically, even if you only profit 1%, you’re still doing ok. That’s definitely a number you can work with. That’s a very good start.
Once you can break even, you’re off to the races!
I would love to know what strategy you use.
We haven’t heard so far, and we may never know. There are many reasons for not posting a strategy. I always post all my strategies on babypips, and traders are free to look at them and use them and find out for themselves how they perform.
8% per month is more than enough. Well, sincerely speaking there’s no such thing as “enough” because trading has such a feature which makes you believe that you can perform better and better, but the main is to stop timely.
However, even 5% of depo growth per month is okay. If we calculate it like a complex percentage, then we will have quite an appealing dynamic, but don’t get overwhelmed with your results as usually it may lead to overconfidence and as a result - black stripe or loss streak, call it whatever you wish.