Numbers-wise, what is needed to make $100 per day with a $5K account?

Trading Discussion
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The reason I used the word “numbers-wise” in my title is because I prefer not to get responses such as: “You need to be a skillful trader”, “you need great money-management”, “you need patience”, etc. Okay, I know all those things. Instead, I want to specifically focus in this instance of what - mathematically - is needed to make $100 per day with a $5000 account.

For example: do I need to risk 1%, 2%, 3%, or more per trade? Do I need to make a certain number of pips per week (if so, then is there a particular number)? Do I need to compound my profits … or, just trade normally without compounding? Is a specific SL and TP needed (if so, what SL and TP would I need)?

The above is just some examples as a basic idea of what I am talking about. I’m not expecting everyone to answer each and every one of those questions. I just basically want to know what is needed to make $100 per day with a $5000 account. Having said that, it does not necessarily have to be with a “$5000 account”. If $100 can be made with a smaller account size, then great! Let me know mathematically what it will take. Conversely, if $100 a day cannot reasonably be done with a $5000 or less account, then will up to $10K be needed? Or will it take even more than that?

I will very much appreciate any replies you guys have to offer. No reply will be looked down on (at least not from me!). I’m open to all suggestions.

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You need to risk 2% of your account per trade. You need to take 2 trades per day with a win rate of 50%. You need a 2:1 risk reward on each trade.

Hope this helps. Best of luck. Hope you crush it.

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OK. Than u need to go to Babypips school.

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Alanlim3, the reason I didn’t want this thread to turn into a discussion of what it takes to be a successful trader is because I wanted this thread to instead only focus on what it mathematically will take to make $100 per day with a $5K account. That is the only purpose why I made this thread.

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steveepperson, thank you for your precise and clear answer to my post. However, I do have a question. Using your formula, would I need to compound my profits? Or do I instead just trade my account “straight” (non-compounding) with your formula?

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Obviously, as your account grows, the amount of money per trade grows with it. So you should keep it at 2%. I should also mention that my above example would probably mean you would have to be on the fifteen minute charts. Also, you probably would have to trade 2 different currency pairs or perhaps a different instrument such as a precious metal along with your favorite currency pair.

Hope this clarifies instead of confuses.

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Thanks for clarifying your post. I actually trade the 4 hr charts and not the 15 mn charts. Is there any reason why the same principle won’t work on the 4 hr charts? I don’t understand why a specific timeframe would matter in regards to the trading forumla in your post. It seems to me that “math is math” and that any specific timeframe has nothing to do with your formula. BUT, I may be wrong. (By the way, forgive me for calling it your “formula”. I’m not sure of the proper term to call it and thus I just call it a “formula”).

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Have you not answered your own question here?

$100 per day on a $5k account is $100 per day, regardless of the permutations…

This answers your above post. Time frame, method, account stats…its all irrelevant. How you get there is down to your own knowledge and experience.

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Given the fact that you are trading with 2% of your account, on the higher timeframes it will take longer to realize the same amount of profit. Therefore you will have to trade between 5-10% of your account because there are fewer trades taken.

On the 15 minute chart, you will get about 10 trades per week, whereas on the 4 hour charts, you will only get 3-4 max.

Hope this helps.

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Okay, I got it:

On the 4 Hour chart, trade $250 per trade (5%). You need two trades per week . You need a 50% win rate. Your risk/reward ratio is now 1:3.

Now, stop making me do math. I’m an American, it gives us a headache when I have to do math!

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Well Pip, its like this, do you want to make $100.00 a day, literally, or do you want to make $100.00 a day average.

USA only Centric

Sooooo, lets count trading days ------ 250 regular working days in 2017, this is a start, because you will have bank holidays, two weeks for Dec 25, the whole week of thanksgiving etc.

Anyway, to keep it simple, lets say 250 days. Now $100.00 X 250 = 25000. I’m sorry, this cannot be done with $5000.00. If anyone says it can, show the certified paper baby. Certified, verified, “signed, sealed, delivered, I’m yours”. The old story is that hedge funds are too big, they can’t move the volume or they will move the market, etc. But a small trader, he can make 500%, because, yada, yada, yada. Yeah I know, I didn’t count the “Magic” of compounding, but you couldn’t compound because you are pulling 100 bucks out every day.

Understand you are looking for 500% per year. If you want to talk math, and probabilities, ok good. So lets start with atoms, did you know that there is a calculated probability that, due to Brownian motion, etc. That all of the atoms in the universe could move together at the same time in the same direction, thus moving the whole universe to the left. That means the atoms in me, you, my mules, everything would, randomly jump to the left. Now do you worry about this, because I sure don’t, and neither do Physicists. The same is true of what you suggest, very, very, very improbable.

I know this is not really the question you asked, but, I am telling you the cold hard reality. People who tell you that you can do this, I don’t know why they encourage such an unrealistic goal.

Ya know what, I’m tired, I give up, you won’t listen, you will blow 5k trying to do the improbable, I’m going back to watching The Feynman lectures, have a great night.

The Ever Physics Lovin VIPER

The Ever Wishing Well VIPER

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The truth, most people can’t handle the truth.

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I totally understand – I’m an American just as you are and math gives me a headache also! :grinning:

I have one last question (no, I won’t ask you to do any more math. lol.) : So, in theory, if I am somehow able to make 10 trades per week trading on a 4 hr TF, then does that mean I can still apply your original formula of 2% risk per trade, 2 trades per day, with a win rate of 50% and 2:1 risk reward on each trade? ( In theory it is possible to get 10 trades per week if I am looking at 20 or more currency pairs. It still won’t be necessarily easy, but it is possible to get 10 trades a week with that many - or more - pairs to look at.)

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Oh you are listening to the wrong people. Go buy a lotto ticket instead. Give up on trading bro. It’s not for you.

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Obviously it is 2% profit daily
To have such profit you need a lot of luck
And it cant end up good

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Yes, without running the numbers, in theory, I believe it would work. Keep in mind, with this formula, you are risking 20% of your capital per week. For most traders, that’s a bit rich.