Topic: Is a 20% Annual Return good ? (Read 786 times)

Hello, I have downloaded the backtest data so that you can better visualize the strategy I am implementing. The backtest covers the period from 2020 to 2023 with a capital of $1,000. In the following link, you will find the spreadsheet where everything is more detailed. Thank you very much for your feedback. https://docs.google.com/spreadsheets/d/1TCRy0wyyBBvGvz8p2wEyB2RcslsJvZ9eN0gGrHWJOjo/edit?usp=sharing
PLEASE CHECK THE BACKTEST

I want to share the tool I've developed with the community, and the Telegram group is for that purpose, to address questions about my strategy. I need more than 20 people to be able to publish the strategy on TradingView and not waste money in vain. If you want to try it, please join the Telegram group, and when we reach 20 people, I will upload the strategy along with a manual for its use. Thank you. https://t.me/CryptoBeeStrategy


There is a post where I will be sharing the results of the forward test of my strategy. If you'd like to take a look, here is the link.https://bitcointalksearch.org/topic/31-days-later-testing-own-strategy-5470605

In my opinion 20% is awesome as return, depending on the risk you are taking with your strategy. It's hard to give a general advice on a trading strategy on the returns alone, because we always need to compare it to the risk you are taking. How long was your back testing and how much did your results? 20% is a nice return when you only lose 10% in a bad period, but when you face risks of losing 80-90% of your portfolio in a year then 20% returns are not enough to compensate for the risk. Let's assume you don't take such high risks with your strategy, then 20% is a great target. Because if you keep reinvesting any profit you make your portfolio is going to grow very quickly in a few years. It’s all about finding a strategy that will bring us consistent returns, so we can keep investing any additional savings we get over time. Back testing is a great tool to see how profitable our strategy would have been in the past. But we also need to be careful, it’s not going to be a guarantee that our strategy will keep performing in the same way. In case you are still unsure with your strategy, I would recommend you start running a live test in a demo account without real money. This way you can keep observing your strategy and maybe adjust it before using any large sums of money.

20% on a small account might sound small but if you are managing a big account of say a million dollars, this percentage in profit is more than generous!!

As for the backtesting session, how many times did you test your strategy and were you using the bar replay for this??

Did you factor in any potential news and how it could affect your trading results?? If all this was done with satisfactory results then you could be ready for he real markets..

20% ROI is more than acceptable unless you want to over-leverage your account for some crazy profits that is likely inspired by most of these YouTube videos that show one trade gaining huge profits !!!

BTW what trading platform do you intend to use??

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20% is like free money and had to check this out...

From what I saw on BItget>> https://www.bitget.com/earning/staking the popular coins don't get the offer anyway near this rate, which isn't surprising as the model is used to hype the smaller tokens/coins  

That is true. I have said that in my previous reply. We should not be limited by one investment. If we are getting a fixed 20% annual return, then we should keep it like that. That's a way of passive income and it is going to help in the long run. And rather than increasing the annual return we can focus on other investment that could give us much more which also comes with a little bit of extra risks. When we are getting a passive income in a fixed annual return we can focus on other things like multiple investment in other assets. Or we can use that annual return to start another form of investment or business.

We will be able to keep the main asset while we make the best use of our profits. We can also try something that has higher risk with higher gain. But just to be on the safe side, you should always focus that we only invest what we can afford to lose. Investments are not risk-free so taking a good measure before jumping right into it is a wise choice. Focusing on multiple things rather than one should always come handy in a world where we are facing inflation quite often.

I'd like to give you a warning that some random guys will message you and tell you that they can do that for you. Never entertain any of them and if OP is successful in doing this 20% return yearly with his trading strategies, that's actually a good amount. It's not too good to be true because there will be a lot of obstacles in able for someone to reach this amount. An experienced trader can reach such annual profits with all of the knowledge, basis and strategies that he has learned over all his trading career.

Yes maybe this is some kind of Bot strategy or script in Tradingview and this does not do automatic orders,
this is just a display in Tradingview with indicators that move automatically providing buy or sell guidance. 

With a return of 20% per year, this is a pretty good strategy, but it depends on how much capital is used.
If the capital is only a little, then the profit will also be minimal.

A specific amount?
But whatever he invests if the target is a 20% return it will adjust.
He just uses the available indicators or scripts or he creates his own strategies that he applies to the scripts.

Their something I want you to understand in this your concept, does it mean that this short-term bitcoin spot trading have to deal with a bot, if it should be a programming tool it assumed that it's a bot applications you are emphasising on, because if the returns is 20% that means it depends on your funds or capital.

This scenario of yours is not clarify, I would want you to throw more light to elaborate more the program you are using and what is going to be the risk measure using your programming tools to get 20% return..in this kind of thing I think someone have to know the specific amount you can use to get 20% return.

It was more than satisfying for me as it was huge enough as I could imagine. Yes, that was pretty huge enough for a trader to make a 20% return consistently until 1 year. If I had that kind of strategy, I would say that I have already reached my goal. Why? Because of the volatility of the market and price corrections, it was hard to gain such an amount.

Well, some say it depends on how much your capital is - of course, everyone is expecting a huge possible return if we also have huge capital.
Anyway, just continue your backtesting and try to apply your strategy just to know how effective it was.

Generally speaking, 20% is already a good return on investment, especially since we are still in a bear season. But there are more follow-up questions that will make or break it.

1. Is the 20% annual return material to you?
2. How much capital will you risk to make that 20% gain turn into something material and worth the effort?
3. How many trades are needed to reach that 20% annual return?

Because we need to make sure everything is worth our time and effort. Trading can be stressful too.

Another thing to consider is that we are already approaching bitcoin's halving where it is anticipated that a big bull run will happen in the next 2 years. If you check on bitcoin's volatility even at this stage, 20% is not that big. All bitcoin halvings break their previous ATHs the following year. This means bitcoin is expected to reach $69k again or more most likely by 2025. And $69k is more than 200% of the current price.

So if you have ample of time daily to do regular trades and the capital then you can proceed. But if you are a busy person with lots of stuff to do in life then it is better to do a regular DCA or daily cost averaging on bitcoin and maybe on some altcoins.

I know that this is purely subjective and according to what someone said in this thread, but I find it difficult finding his username to mention him. Some people like to earn more than they need, while some just want to earn normal and live a comfortable life. In a safe investment, 20% is high and risky. 10% is fair enough. There is no financial advisor that will tell you that 20% annual return is bad.


20% is good, talking about the limitation, we can encourage diversification rather than forcing ourselves to increase the annual return on a particular investment such that it will become risky to maintain consistency.

I get your point. An emergency situation could come at any time in our life and for that we need to be prepared. Talking about OP, 20% annual return could be a good start but we should not be limited to only that. Whatever we earn we need to keep saving for those emergency situations. Investment is one thing and saving is another. Investment could bring profit or loss, but savings should be kept aside from everything only for emergency situations.

And when it comes to money, no one is satisfied with what they are making. Look at soccer player Messi or Ronaldo, Don't they have enough money to live their whole life? Yet they are still making money. I'm not comparing us to them because that won't be a logical comparison. But the fact is when there's an opportunity we should always take it. Because unfortunate situations are bound to come and no one knows when it will come.
Once we learn what money is we keep on pursuing it. So I agree that it is not a need but want. Who doesn't want money?

There is a limit where it's okay to not have more, you will want to have more but it would be ok if you fail to, but under that limit it's just that you end up having life trouble. For example in my nation you can live with 1k dollars a month, that's a good income and you could live with that on a normal period, but what if something goes wrong?

What if you get sick? What if something at your house breaks and you need to buy a new one? I mean all these are extra money, so that means if I make 2k that's good? That sounds about right, not bad, I mean still not rich at all but those urgent things and problems could be taken care of, or at least could be better, but what if 5k? That would be lovely, then I would be able to say that I do not need more money, would I want more money? Sure, but not need that's "want" that's different. So, people are looking to make more than that need, not want, if they make more than they need, that is good, regardless of what the % annual is.

That's super good return. Can you trade for me please?

Oohh, if you think like a traditional player I think that's surely acceptable but psychologically we humans tend to want more than that. A bear market in crypto with 20% annual return is still low and for me it needs to be higher than that depending on what type of investment you venture or what coins you're holding, that's what matters to maximize a return.

I see that percentage being extremely low for a whole month. I know that 20% a year doesn't sound really bad but it is only if you are not doing anything and just getting that percentage for keeping your funds idle somewhere, but if you are making manual trades and still getting such a low percentage, maybe you should up your game a little bit. I'm not asking you to take bigger risks, but you should gain more knowledge and try to take out more profit from every single trade instead of settling down on just 0.06% per day.

You should at least be able to get 1% profit from each trade of you are that much careful, people get even more and they don't even that such high risks. You should try and learn a bit more about how you should open and close your trades in the spot market and I'm pretty sure that you can get more than that.

Calculate your profit and if you are satisfied with it then that percentage annual return is good for you. But money is something that people can't avoid. The more it is the better. It is hard to be happy with what you get. But if you have a plan and think it as an investment then it could be a good solution. 20% annually could be decent amount if you are looking for a slow but steady less risky investment. But in the end it's all about your satisfaction and if you are happy with it then it's all good.

But why stop there? In order to evolve we need to take risks in our life. If we want to become successful then taking risk is inevitable. Spread your investment into multiple stage. You can keep your 20% annual return while you can go for a higher annual return and invest on that. Your 20% annual return will keep on coming while you work on making more money. I think with this strategy you can have the best of the both worlds.

20% is more than acceptable, I would say. In my experience 30% is more realistic if you really know what you are doing and have a lot of years of experience in trading, technical analysis and fundamental analysis. And even then there are many traps for emotional traders to fall into. Even I, myself sometimes do something stupid and act on emotion without even realizing it until its too late.

Everybody is only human. Especially in trading.

20% is really that easy to gain but of course it would really be needing that somewhat active dealing with the market or simply making up trades on active manner.It doesnt really need up to wait up for a year before you could really be able to reach out this annual gain but if you do really like to have that lesser risks then 20% is enough or good which is way more  than with those banks been offering but if we do speak about staking which APY's are really that something interesting but its not. Risks is there as always on which we do consider that value of crypto doesnt really stay on one place on which tendency or chances
being unprofitable would really be always  there.

Totally it would really be just that depending on you on what are those % returns that you would really be preferring into as long you do make yourself go with the path on which you are comfortable with then
it would really be always falls down into your own choice. We are really that too skeptical and mindful about risks factor which it is really that a normal approach
on which we cant really be just taking actions without minding about those probabilities.

**Performance in 31 Days:** Forward test
I've completed twelve trades,. Over these 31 days, I've achieved a return of 1.91%, which translates to a daily return of 0.06%. Projected over a year, that would be 22.52%, but this can vary based on market behavior. It's important to note that this is in the spot market. Can it be done in futures? Yes, and with leverage (2x or 3x), you can easily reach 60% to 70% returns due to compound interest. However, I prefer the spot market as I see it more as a long-term investment.

Here's the link to the spreadsheet https://docs.google.com/spreadsheets/d/1nfNuJB5ZkewvZ8A9ACPJik0p3Vq1g-TO/edit?usp=sharing&ouid=105063930982027234018&rtpof=true&sd=true where you can see all the trades I've made, a screenshot of how the strategy operates on TradingView, and a sheet of risk. I'll provide another update at 60 days and continue until I reach 180 days, which will conclude my testing, and then I'll consider adding more capital. Feel free to ask anything...

thats true with compounding it will be more worth it but we are talking about annual return of trading here whereas we all know one mistake in making decision could lead half if not entire capital vanish into thin air.
20% honestly is still arguable whether it's worth it or not when it comes to this, if its investment where the risk significantly lesser than trading then its already good enough, even deposits not even half of it.
therefore i don't think its such awesome income either.
honestly if we got that rate as an annual return, we might recalculate whether it worth the risk or not, seeing from past trading history, whether its worth it putting that much capital for such returns.