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Re: Opinion Poll on REAL returns (Monthly)to all metastock users.



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In a message dated 7/14/98 12:29:19 AM Eastern Daylight Time,
altag@xxxxxxxxxxxx writes:

> Hm-m-m-m, let's see, Rajesh.  25 days / 40% = 1.6% per day return on
>  equity.  Approximately 252 trading days a year, 252 x 1.6% = 403.2% per
>  year.  Yes, this is an acceptable return on investment.
>  
>  You are certainly encouraged to post your formulas and selections each
>  week.
>  
>  Al Taglavore

I think you forgot to compound the figures.  If you
compound 1.6% over 252 days, you get a 5360% gain for
the year, not 400%.  Of course 40% of that will go to
taxes, so your annual gain will be something like 3210%.
Not bad at all!

On a more realistic level, a 1% variance per day
happens all the time.  If you are accurate on 2/3 of
your trades you can average 1% every 3 days, or just
over 7% per month if compounded.  Compounded to a
year would give a 130% gain, or 75% gain after taxes.
I don't plan on being accurate on 2/3 of my trades, but
I do plan to continue an average 5% per month (80% gain
per year, 50% after taxes).

Randy Given
GivenRandy@xxxxxxx
http://members.aol.com/GivenRandy
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