Monthly Archives: May 2015

Improvements, advancements

I always try to keep my expectations realistic. But the past year, particularly since September 2014, I have made a lot of advancements in my trading. Back then my highest returning forex system returned 8% per month with a maximum executable size of $100M. Now my highest returning forex system returns 13% per month with a maximum executable size of $50B. Consequently I have changed my future expectations. Before I was expecting to make $2-3B a year at the age of 40. Now I’m looking to make $100-200B a year at the age of 40. Right now my 3 core systems have an executable size of $55B and a yearly profit potential averaging $80B.

I’m really lucky I decided early in my trading career to focus on systems with executable size. Let me show the difference in compounding on a low executable size system versus a large executable size system. Say you can return 13% per month on a 15 minute system. You can make up to $100M a year likely on EUR/USD. But say you have a system that can trade on dailies on multiple pairs. You can make $50B a year. Lets see the difference in compounding over 20 years. The first 6 years are the same on both systems. But after that there is huge divergence. On the $50B system you end up with $517B after 20 years. On $100M system you end up with $1.4B after 20 years. This is assuming no increase in market liquidity. If you take into account increases in market liquidity the difference is even bigger.

50B vs 100M