Correct, leverage replaces cash at the cost of exponentially higher potential of loss, of bad trades, of negative market whipsaws, all depleting available capital.
Realistic return is impossible to quantify. But a valid target would be a percentage sufficient to pay for all costs of living without reducing the account capital.
So if you need £25,000 a year to live on and you have £5,000 of capital you are going to need one hell of a strategy.
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A realistic percentage gain in trading varies but often falls within the range of 1% to 5% per month, However, it’s crucial to focus on consistent profits and risk mitigation rather than setting arbitrary percentage targets.
I think you could move to real. Since May - If you really make 1% each time when you sit down to trade OR close every month with 5-10% increase, you can safely trade on a live account tomorrow.
I don`t think there is a target one should aim for but I think targeting to average a certain number of pips or points for the day is better.
Before asking “what is a realistic percentage gain”, perhaps you should evaluate the skill level of the trader.