Topic: Is a 20% Annual Return good ? - page 4. (Read 788 times)

20% APR is very good for Bitcoin trading. Over the past year Bitcoin is up 35% so these returns are certainly realistic. Bitcoin isn't as volatile as it was in its early years. It is possible to have many months of sideways price action and it can take a long time to recover from bear markets. If you were buying Bitcoin leading up to its all time high your strategy might have failed and you would have negative returns right now.

For me that's pretty good already, so if you put a huge capital then you'll also have a decent return from it. But how certain you're 20% is accurate annually? The market is unstable and the profit is depending on its status so if you can make it to be consistent for annual return then it's acceptable.

Anyway, as long as you're gaining that's a good progress. When we trade or invest, regardless of how much we gain, what matter is we profit, right?

20% looks to be low and small ROI in cryptocurrency market where you can see many altcoins pump 100% or 200% or even higher within 24 hours or a week. However if it is about a long term ROI, 20% is a very good profitable rate from trading.

Altcoin enthusiasts can x2 x10 their capital with one or two successful bets but after that, they can quickly lose their capital as well by falling in rug pulled projects and fiascos like Terra and FTX. I think you know well about risk of altcoins so the 20% annual ROI from OP's trading strategy is good one. It's just will it be able to work well in different market phases.

With capital management and allocation for trading, I even self-limit it to less than 10% of my capital. The main part of my capital like up to 90% belongs to long term holding and most of them is in BTC, not in altcoins.

It is a pretty good achievement to be honest and I suggest you go ahead with the same strategy for long-term trading so that 20% annual returns along with the compounding effect will produce great ROI in the next few years.

20% seems very low compared to the volatile nature of crypto assets and I won't be surprised if many others say it's not enough but from an investor perspective this is something too good and if you manage to hit that value for the next few years then your capital will be doubled. But as I always recommend just go with a maximum of 30% as capital for your trading from your total crypto portfolio value and anything beyond is a huge leap towards risk.

You are right, it is generic to say that 20% is a good number for profit, I agree on this at first because 20% is better than nothing or a loss, but return should be associated with the risk. If you get 20% of return in a very high risk trade I guess it is not worth it, WHY? because you could have lose a 100%, is this worth of the risk? I don't think so. I'll say if you get an annual of 20% profit, that's a pretty good strategy. I wonder if we still need to know the frequency of trade here since we need to the 20% comes from a good winning rate as well.

It mostly depends on the portfolio a person has, if he has more portfolio then due to the fear of loss, 20% is better than loss. But if he invests in this type of annual return, then it is better to have a decent portfolio and get a decent profit. There will be no fear of ending with the loss. Most traders have the fear of losing, if you are one of them 20% is great for you. Just stay with it, and if you have some budget, through which you want to do day trading and want to get more, then it will be also the best choice to start trading with that amount.

And also the profit is even small, it is worth it, doesn't matter how much profit you have. But if you are addicted to your 20% annually and suddenly a bull market starts, then you will regret, that should have invested in some other cryptocurrencies and get a huge amount instead of 20%. The main thing in the annual return is, should be invested more to get more.

In fact, if we look at the risks we face, in my opinion 20% is a small number and not worth it with the big risks in the crypto market, we should be able to get bigger.
However, if you compare it with other investments, 20% is a fairly high return. We also have to look at this realistically because every possible profit will be proportional to the large or small risk we will face.

What if your predictive model doesn't go as you expected if your historical data doesn't match up with the current data, have thought of what will happen as we progress? What if bull run never comes as we approach halving? Have you tested it? I would love your swift answer because it is even better for you to test your model before even making assumptions on the 20% annual tool, you should consider what will happened if this doesn't go as plan, the back up plan except you want people to come after you if it doesn't go as plan.

Another thing is, when I see any return on investment that exceed 5% in crypto is nothing but hype that is scam or will definitely end up as scam, if 20% is a good return, why don't you improve the model and make it work for only you, if you can prove that your model works in trading, there are plenty of loans to push the project to where objective and aims tell you to achieve.

I will tell you for free, 20% is too high.  

It's a really good return, your 100 bringing back 20 is nothing to scoff at, if you look at what banks offer when it comes to returns or rather their interest rates, people are flocking on 5% annual return so yeah I think it's a good return but given it's crypto market, you should know that there's a possibility that you might not be able to continue that kind of return unless you have a solid plan.

20% on any measure, if it is the dollar measure, is bad because on average the price may rise by more than that based on the date of the first opening in January and the last close in December or any average of 12 months make more than 20% unless the strategy will guarantee 20% in the bear market season as happened in 2022, which It can be considered good.
But if it is 20% more than Bitcoin, it is very excellent because Bitcoin is POW and other than trading or loans, there is no way you can achieve a guaranteed profit, even by 1%, and through your talk, you may give the user a guaranteed profit of 5% if we assume that 20% is possible, so If the return is in BTC, you can launch a paid service after sending it to trusted people to make vouch copies for you.

Okay, thanks we will see if you've been doing well on the actual since you're good based on your testing with the non actual so should you be done with that, it's nice that you'll share the data.

That's gonna take time and I'd expect that it's like gonna be a roller coaster ride for you. But since you've been doing the test for so long and you believe in what you do and only you know what's happening currently, good luck with that for 6 months and I hope that it will generate you positive outcome.

It is more than enough, in fact, banks can never offer such an amount but can be possible in crypto. As long as you are consistent in your strategy, that certainly works and it can be more especially when the market is moving high. If we have to do this, must still apply the strategy of buying low as I doubt that this will work during the bear season.

As long as we can hold and wait patiently until the price goes high before selling, we can really make a profit from our investment. But if we are impatient, I was certain that it will fail.

As of today, 02/10/2023, it has generated a 0.76% return in 17 days. We'll see how it performs until October 15th, when it reaches the 30-day mark. I will upload a link to the Excel file containing all the trades I've opened, generated by the Binance platform. I plan to conduct a backtest for around 6 months.


I was thinking the same thing, but slippage isn't as significant since I'm operating within a 3-hour time frame.


This strategy I've developed operates by averaging purchase prices. The key question is: when to buy? This is where certain mathematical calculations come into play to try to predict market volatility.


I conducted the backtest from 2018 to the present date in 2023, and on a monthly basis, it has consistently yielded returns ranging from 0.8% to 3%.


I developed it on TradingView, and when a buy or sell signal is generated, I receive an alert in my email with the purchase amount and the price at which the limit order should be placed. Currently, I'm testing it in a real account as a trial with a small capital. Once I have my figures sorted out within 6 months, I'll connect it to 3commas to make it automatic.



EXTRA
I want to clarify that this is in the spot market, without leverage, as I prefer not to engage in leveraged trading. However, it's worth noting that it's possible to leverage up to a maximum of 5X, but the risk increases significantly. Since my strategy is based on averaging prices and volatility, it's possible that using high leverage, especially beyond 5X, could lead to account liquidation before the next purchase. I prefer the spot market because it's more comfortable and aligns better with an investment approach. I mention this in case anyone was considering it.

That is income earned passively, and on the other hand billionaire investors tend to avoid investment instruments with returns that are too large (if any, it is probably only a small part of their investment portfolio).

In the context of trading which is a more active effort than just holding, such returns may be relatively small especially for small capital traders, let's say you only trade $1k for the whole year + $200 in profits. On the other hand, there are several things that need to be counted as your sacrifices, including the time and energy spent.

Warren Buffet may or may not be doing 20% a year. Let me put that out there, it should be explaining how important a 20% return per year is. Obviously he has been doing that for 70 years and that is why there are a lot of people who puts money into his firm and he has a lot of capital to make that 20% return. Making a 20% return on 1000 dollars and 1 billion dollars are not the same and you can't really consider it same success.

However, if you make that type of return per year on the dollar, you will be very very very rich in 50 years as well, just find a website that calculates it for you, put in the starting amount, put in years, and put it that 20% and you will see how rich you will be. Bitcoin could help you with that, I bet that on the long term bitcoin will bring more than 20% return.

20% per year or 1.66% every month is something that much better compared into those traditional platforms or institutions that we do know offering 1-3% per year on which making up some comparison
then you do know on whats or whose better on which there's no doubt that this is a considerable thing but results on backtesting doesnt mean that it would be surely be that ending up on what you do gain in a span of year.
Why? dealing with crypto space is never been that an assured thing specially into its movement. There's no way that movements would be fixed and something that would really be in uniform on which it would really be just that normal that breaking those analysis would really be just like a normal day on this space which means that adjustments is a must and getting along with the flow will really be a typical thing on here.
If you do set up those analysis with lesser risks and if you are really that contented with those results then go ahead, but be better to be wary about the volatility of the market on which you would really be needing
to be that versatile and never ever make yourself that forgetting on having a couple of back up plans whenever your initial analysis had failed because it would really be just that so normal that market
could break out an analysis in a snap no matter how good and realistic it would be.

This is a good profit, but only if it is received on a real, not a demo account. And in order to get the right result, you will need a more significant period of time, calculated in several months. But even in this case, the data may be incorrect, since your strategy will not be able to be executed due to market changes.

The percentage of return completely depends on you mate. If you are happy with this, then yes this will definitely work. If this is a sure sort winning strategy, and if the returns are guaranteed, then why not to increase the amount that you have invested, this can yield you more profits. Now if you want to increase the numbers of the percentage of returns, then you to take risks accordingly. Moreover from my personal experience, no profits are guaranteed, so yes keep us updating about the returns that you are getting.

It's acceptable, 20% annual reward on return on investment is not too bad, if it were to be more than this I would have said its likely not to be true, many people always think about using high yielding return on investment in other for them to get enough satisfaction of their desired profits, but things doesn't work that way in most cases, the higher the return the higher the risk, that is why we shouldn't be too focused on what gives us a quick return or promise on a vain platter.

If you're satisfied, then it is a good return. This assessment must refer to several factors, in fact Bitcoin has a price trend that is never consistent every year. The most traders hope for is to remain profitable in a bear market. Imo, calculating average profits over several years isn't ideal as a trading evaluation.