Making 3% profit everyday

Hi guys

Is it possible to make 3% daily? If it is, how is that achieved?

Is it based on some EA or indicator? It it done manually?

I just cant figure out how one can make 3% everyday.

3% per day… ?
Means 60% a month(considering 20 trading days)…?
Means 720% a year … ?
Increasing capital 7 times in an year… ?

Pretty nice but impossible dream…!!!

Its possible, like anything…

3% return on equity employed over 20 days compounded would be around an 81% return a month. That’s doing one trade a day with a risk level of 1/10th your account and earning 30 pips each trade, no losses and no blowing your account.

Possible, but risky and you would need to get it right the majority of the time. Every trade you lose on would require two more to redeem your loss, and continue to increase at the rate above (assuming you losses equal your gains).

At the same time, you could gamble half your account and double your money in one trade or you could lose more than you even realised…

Lots of strategies out there mate, but I would aim to grow your account by more than what you would earn sticking your cash in a bank account and the value of your time spent looking at charts!

Bitterseatrader

So in a short time you’d be rich. I imagine that even if 3% a day were possible the psychology would mess with your head at some point - pretty quickly the risk necessary to achieve that return would be pretty heavy. Imho many newer traders tend to target overly-ambitious percentage returns to compensate for their small accounts. Starting with a small account it is very hard to make real money for quite a while, until compounding increases the account size. Personally, I don’t think that a 3% daily return is sustainable over the long term.

3% per day is a lot, having that kind of goal means you will place a high amount of pressure on yourself to find trades to achieve that. That will mean that you’ll force trades, I’ve tried this before, it involved a high amount of risk and it only lasted about 3 weeks before I lost all the profits I made, and it went downhill from there.

Calculations are accurate. Agree with you. Achieving 3% a day (81% mothly compounded as you said) in a month require only [B]30pips a day[/B]. Sounds nice.

I can become so rich, If I can earn at least 5 pips in a day with a risk level of 1/10th of my account as it will increase my account by 10% in a month(Considering 20 trading days in a month).

A 10% reward, after compounding can make you a multimillionaire in 10 years with an initial balance of $1000.00. Yes, I say with just $1 K.

How

Initial amount $ 1000.00
After 1 month $ 1000.00 + $ 100.00 = $ 1100.00
After 2 months $ 1100.00 + $ 110.00 = $ 1210.00
After 3 months $ 1210.00 + $ 121.00 = $ 1331.00
AND
SO
After 120 months $ 84280971.65 + $ 8428097.16 = $ 92709068.82

[B]yes $ 92.71 million[/B]

See, How sweet it is…

If it was that much easy to gain 5pips consistently everyday, then almost all members would have been left this forum as they will be busy in searching to find out extra areas to spend their huge money.

Calculations are easy. But are not practical. Your emotions will be your enemy.

I am not discouraging. All the best… and try to be practical…

Also, you’re not factoring in any losses.

Btw, what broker will be able to provide that liquidity for you to be able to get to that stage?

Not suggesting its achievable…(maybe my post is misleading) But I personally don’t believe I good gear my account to those levels and get 30 straight correct trades a month.

ā€œanything is possibleā€ its just not very likely…

Take it easy. Earlier I was in a race to achieve so many millions in no time. Worked very hard, Always in front of PC… No Sleep…No rest…No food… No other activities…

After a long race, I found myself nowhere…Even, my base was not there…

But after so many months of experience, now I am somewhere… I am somewhere only because of suiting risk management.

Those who understand the risk before loosing heavy bucks will be lucky. But those who understood the risk after loosing all their bucks will be more creative.

I think that the losses are factored in. When people put up questions like this, they are implying a ā€œnetā€ 3% p/day gain. So they assume that whatever losses are realized p/day are canceled out by the daily wins so that the net profit is 3%. They do not assume 100% success on their trades.

As to liquidity, this isn’t a problem either. One can break up the big account and split it between brokers and use a trade copier to copy out the trades so that when factored together they all are equal to the one larger trade that you were looking for. Doing this would create variable results because fills on both the entry and exit wouldn’t be the same as whatever the fill would be on a single large order, but it would actually probably be advantageous to split up orders to be honest.

In truth, as others have said here before, the problem is psychological in nature which translates into a lack of discipline. Are you undisciplined and apt to do stupid things like cutting risk in half after so many losses in a row because you want to ā€œsave your accountā€? If so, then you’ll probably find that your wins, when you see them, are only at half strength and when you power back up to full strength by doubling risk back to your original level, that’s probably the time you’ll hit a losing streak again. Which means you’d have a period of half-strength winners followed by a string of full-strength losers. That’s what happens when discipline breaks down.

Here’s where it get’s more complicated. You might have the discipline to take your losses like a man and see your $50,000 account (which you grew from $10,000 over the course of 3 months with high risk trading) diminish by 75% to $12,500 and STILL put on full-strength trades with the result being that 4 months later your balance is sitting pretty at $110,000…new equity highs! But when your account balance is $500,000 would you have the SAME discipline with every trade as you see your account beat down to $125,000??? or would you fall into the trap previously out lined? If you fall into the trap when your account is $50,000 or when it’s $500,000…the results will always be the same.

If you have the discipline to put on a full-strength trade and follow your plan even as you lose $375,000…then you might just be able to trade high risk until you get to $100M or so. After that…liquidity is going to become a problem and your movements in the market might be making enough waves that others behave differently ā€œjust enoughā€ with the result being that your system doesn’t work as well anymore.

Actually in a perfect market place where all brokers use the top tier 10 liquidity providers it would make little to no difference splitting up a big account into several different brokers. Liquidity is liquidity, no matter what broker you go through. And if we are talking big numbers, there will be no MT4 copy trader involved, most high spec accounts use Java or Currenex as the platform of choice.

You’re right that liquidity would work out pretty much the same whether the trades were split between brokers…the only problem is that you might not be extended the same terms of credit at a single broker vs. multiple brokers.

I’ve seen many brokers that have 400:1 leverage up to $50,000 then 200:1 up to $100,000 then 100:1 up to $1M and then 50:1 over $1M…or some similar schedule.

So if your system is a high-leverage system and you ā€œneedā€ to have access to 100:1 leverage in order to trade the system as designed, then you’d have to split the account across multiple brokers in order to keep the respective balances low enough to still qualify for the higher leverage.

I once asked the live chat people over at Pepperstone if they cut leverage on Razor accounts once the balance grows beyond a certain level and they replied that they did not…so maybe there are brokers out there that don’t chop leverage down as account size grows.

:22:

Ooooo, no, you didnt just ask this did you? Of course im taking the bait on this one, lol…

Is 3% a day possible? I dont know, I havent talked to anyone that has. But on paper, its possible… So like already said, its all in your brain stability… Can YOU make 3% a day?

Now, I am a big advocate for this type of money management, as many here know… If Im trading Oanda, I use 90% of my units available, and end the day after 15 pips, for 5% increase on opening day balance.

No, Im not trading live yet, once again got sidetracked with bills… But its giving my time to fix some of my trading issues, which I do have a few… Not perfect…

Right now, Im in a contest, and in 3rd place out of 50 traders, hitting 85%… hopefully I win, and there is my deposit, but also, a huge accomplishment… So thats what im working on right now…

The key is, dont lose more, then what you won yesturday. So, you lose 1 day of profits, but its what you take from the days lessons, and dont do them again… New day tomorrow, go after your 3%…

And, if you can be right more often then being wrong, its a great plan…

I have a pretty good strike rate at 90% over the long term, so I expect to be right most of the time, which inturn, gives me the Best chances to succeed with a plan like this…

A problem is, Stepping away after you get your 3%… " Man, that was easy", " Lets try for 3 more %"… DONT

Just walk away, and dont trade anymore that day… Its easier said then done, I know… But you must practice this plan, and find a routine in the system… You have to do this everyday, for who knows how long… So get a Routine together… A detailed plan, that you MUST follow, step by step, exactly the same way EVERYDAY… This inturn will build consistancy within your trading, AND in life…

Man, 25% a day is doable… The pips are there, the liquid is there, but the MIND must be there…

Practice ROUTINE, and make every move a calculated step…

You know, I hear alot of traders that say, " I can double my demo account in a week", its differant… WHy practice with unrealistic approach? Because evidently, realistic isnt making many traders money, thats why…

WE dont move the price, WE must ride the price, when we see it favorable to jump on the train…

Give it a try, but dont treat as a test, treat as a new plan.

2 Likes

Very good point, I didn’t even consider that leverage/margin requirements change as the trade volume increases.

Bheks. it is possible.
I was making solid 3-10% profit. A month ago I had 7000 in my account and just before I got margin called 2 weeks ago I was at 19000. this was from an original deposit of 2500, with almost all deposits withdrawn (ie 6500 of that 7000 is profit). (why did I get margin called then? I thought I’d be notified before they closed off my positions so when GBP, EUR moved 84 in 90 minutes while I was asleep, with phone and credit cards handy). If I’d put the equity shoreup deposit in I would have made 25% by lunchtime the next day… (or if the NZD had moved at the same time, rather than 4 hrs later)

This is how I was doing it.
First of all, I’m more property than forex, and don’t bother with shares. I know mortgages and ag and video business.
My account is (was) with CMFX, using their NoDealingDesk option, and TradingStation software.

positions bought and sold were based on my equity size. 2.5k = 1-5 minilots. 6k 3-10minilots. 14k 10-30k minilots.
I would watch Tick, 1m and H4 charts in KD, GD, ED (kiwidollar, pounddollar, eurodollar pairs). 1m candles were my church. Tick would add a little icing on the up or down if I was manually closing. H4 (and 15min) helped make sure I didn’t get caught betting against any ā€œmacro-trendsā€.

My only real indicators used were the candlecharts and the volume indicators (shows depth of market, so if people are likely to be holding/waiting or acting, and whether it was brisking trading over time or a large account holder bullying the market)

So I’d look at the chart and decide whether it looks favourable going up, or down. look for recent supports and resistances. on the candles!! (classics, had we had shoulder behaviour? is there elliot wave appearing? Do others in the market appear to be using a fibacconi - or pipping out those who do).

And then I’d set a Limit Order (and write it down in my log! with expectations). A check of the news for upsets if you have time is worthwhile. If I’m really confident I’d just market order it.
And then I’d set a alternative (ā€œstraddleā€) position, using limits orders. So when the market moved against me I’d make a profit. enough profit to cover my loss on the initial position, and I’d set a limit order past my profit take point.

Confused. at this point most are. especially the currency traders, because I’ve made little equity and lost on the hedge spread. But I’m more into property and mortgages. My ā€œprofitā€ at this stage is just buying back the equity in the move, the further the market goes away against that first position the more important it is to get that hedging profit to cover the floating ā€œmortgageā€.
Because currency goes up and down. And as the trade eventually swings back my way, my ā€œmortgageā€ gets paid off, my losses reduce (and my ā€œhedgesā€ become my new mortgage and I recover equity on my original position).

Important points are: Keep the gains conservative - and a few minor positions for long swings. You still have to consider risk vs profit (ALWAYS) but we’re taking a longer view on the position to reduce the risk factor. but you’ll never clear 3% cutting your business off short. It means being ready for swing and overnight/weekend positions so have equity deposits close at hand. Bet to favour carry trade, it’s nicer holding a position that gains a pip a night than one that costs you. Margin management is critical!!! currency, trades, fundamentals, or playing cards will all go for and against you the aim is to stay in long enough to see the position win. I manually manage my stops (as a minnow the big fish like to ā€˜stop me out’ for their lunch money) and this requires a bit of nerve and serious consideration - often I’ve closed off a ā€œmortgageā€ with a hundy left on the clock only to see the overnight hit the profit limit and drop back. Now if I’m worried I’ll give it a 1pip margin and wait to see whether the market holds.

Unfortunately the new margin rules at CMFX might stop this trading system from being effective. So I’m looking for a new broker that allows the upwards pips to cancel out the downwards pips, without adding margin weighting for a hedge position.

currently 2 weeks after being margin called, to 6440 equity, I’m back at 9400 (that’s about 1k increase in profit, and having to ā€œbuy inā€ a new set of positions, and a 2k shot in the equity to get out of the penny leagues). it’s slow going because I’m watching to see if a safer system can be worked on the equity number.

Sum up: staddle positions. safe but profitable Limit Order (profit take). carry trade. margin management.
I normally have 15-30 trades open at any one time and system seems to work on moderately predictable currency pairs (KD tends to sit between 0.5-0.9, Pound tends upward, Euro tends downward) doesn’t really seem to work well on JPYUSD or AUDNZD (I don’t have the ā€œfeelā€ for the Yens ā€œnormalā€ movements, and the cross (AUDNZD) is too erratic in shorttimes to allow ones ā€œfloating mortgageā€ to clear to comfortable levels - this system relies on modestly quick turn around (20% of trades within a few hours, 60% of trades close in 48hours. 10% of trades may take over a month to go into profit but they’re some of the sweetest. anything longer I get bored…)

I can’t recommended the system. But I can say I’ve been doing it for months.

And the losses? always the losses! 2500 on a bad day early on when I had to pull 5000 to pay for the farm rent, and closed off a bunch of ā€œmortgagesā€ to protect my margin. 400 lost on a day because I closed the wrong transaction (duh!!), 2 days where I lost about 50 because trade was slow. about 2days where I got <3%.

I haven’t got to the profit take point but the system I was going to use was never more than 50% of the previous months equity gain, and never take before the 20th of the following month. I was still in capital build phase of the system so the profit take MAY affect the way system margin sits.

Trade fast, trade profitably, protect your margin.
Luck be with you.

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Oh 1 rule have also discovered. [B]Never[/B] try to cover a couple of smaller positions with a larger one. Iteratively smaller positions, even several of, but never bigger. Bigger is opening a new ā€œmortgageā€, which if you’re trying to cover an existing position, is pretty much exactly the opposite effect to what you want. ie Instead of ā€œcovering the positionā€ you’ve not covered the position AND you’ve opened new exposure AND reduced your margin safety. Instead of solving one problem you’ve created 3 !

ā€œproblem is, Stepping away after you get your 3%… " Man, that was easyā€, " Lets try for 3 more %"… DONT "

If you’re in swing trade then it’s fine - every trade is a new trade, and stands on it’s own.
But I certain agree if you made 3% one day, don’t ā€œtry and go for 4…or 6ā€. that’s russian roulette thinking, like thinking the last trade sucked so the next one must be better.

You bank your 3% in equity. And keep to your systems rules. just like MoneyNVRSleeps says…

@Bijoymi:

"3% per day… ?
Means 60% a month(considering 20 trading days)…?
Means 720% a year … ?
Increasing capital 7 times in an year… ? "

3% per day, been doing it… here’s a hint: IT COMPOUNDS!

3% per diem (without profit draw) = 1.03 ^ 20 = 80% in a month
and 120,300% in a year. but it’s still only 3% per diem. (inc losses & no profit taking).

Admittedly I’m only up 1.6% (150/9000) so far since open of trading today (5 hrs ago) and just a minnow (wee account) but I’ve been out most of the day. But I’ve been playing it cool to develop system to a lower risk, and since I haven’t been watching the magic wavy money line much today it’s harder to call what sentiment in the market is likely to be.

19hr after market open this week (cf previous post 150/9000). $226 (+6 carry) with balance 9,544; floating same 1,000 loss. 2.3% with 5 hrs to go.
Haven’t bothered opening much in the way of new positions at moment. Only a Limit Order on GD, as there’s some nice ranging volatility (ie high probability that the currency will track well within it’s band, reducing risk.) LO: 1.59131 as@ 20/Nov/12 05:48. take limit at 1.58954. no stop set so not to feed the big fish. check back 3hrs time.

It’s not possible to make any fixed number, since it’s a decentralized market, never & ever.