Day Trading Returns

NexusFi · 2024-04-17T18:11:05-04:00

I think if youre a highly skilled day trader, like truly elite, years of experience, a pro who can make money each day in the markets, 2% a day is attainable. And that might be on the conservative end. If you have a $100,000 account you can comfortably trade 10 contracts. At that size theres definitely room to make 40 points in the ES. Depending on how you scale out and if its a big quick move you could make a lot more on just one trade. Every day there is at least one trade in ES that is THE trade, …

Discussion in Emini and Emicro Index

Updated April 17, 2024

Day Trading Returns

April 17th, 2024, 06:11 PM

#11 (permalink)

blade algos

Rochester, MN

Posts: 2 since Apr 2024

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ES Jedi

Looking at the 40 year returns of the s&p 500 ... what type of preformance should day traders use as a measuring stick? Attachment 338489

If you don't bet, you can't win.

No need for guessing. You should be able to figure out your expected returns once you know your edge. Edge is a number, it is not a story, and is also known as expected value or EV. The formula is (win_rate * avg_win) - (loss_rate * avg_loss). For example, let's say your strategy risks 20 ticks to win 30 and has a 55% win rate. Your edge or expected value would be (.55 * 30) - (.45 - 20) which is 16.5 - 9 or 7.5 ticks for each trade you take that adheres to your strategy. Now suppose this same strategy gives you 3 valid entry signals per day and you take all 3 every day. You would win 3 * 7.5 or 22.5 ticks every day on average. If you have a small account and trade 1 MES contract your expected returns would be 22.5 * 1.25 or about $28.00 per day in this example.