Is a 20% Annual Return good ?

[Questat]

With my experience in the cryptocurrency market, I decided to develop a short-term Bitcoin spot trading strategy using the TradingView platform and its strategy programming tool. I managed to create a strategy that yields an average annual return of 20% according to backtesting. My question is, is this return acceptable, or in your opinion, what would be an acceptable or good 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.

[GeorgeJohn]

With my experience in the cryptocurrency market, I decided to develop a short-term Bitcoin spot trading strategy using the TradingView platform and its strategy programming tool. I managed to create a strategy that yields an average annual return of 20% according to backtesting. My question is, is this return acceptable, or in your opinion, what would be an acceptable or good return?

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.

[taufik123]

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.

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.

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.

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.

[bhadz]

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

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.

[tjtonmoy]

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.

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.

[Woodie]

With my experience in the cryptocurrency market, I decided to develop a short-term Bitcoin spot trading strategy using the TradingView platform and its strategy programming tool. I managed to create a strategy that yields an average annual return of 20% according to backtesting.

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..

My question is, is this return acceptable, or in your opinion, what would be an acceptable or good return?

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??

With my experience in the cryptocurrency market, I decided to develop a short-term Bitcoin spot trading strategy using the TradingView platform and its strategy programming tool. I managed to create a strategy that yields an average annual return of 20% according to backtesting. My question is, is this return acceptable, or in your opinion, what would be an acceptable or good return?

You can get an APR of more than 20% on Bitget Flexible savings

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  

[Mauser]

With my experience in the cryptocurrency market, I decided to develop a short-term Bitcoin spot trading strategy using the TradingView platform and its strategy programming tool. I managed to create a strategy that yields an average annual return of 20% according to backtesting. My question is, is this return acceptable, or in your opinion, what would be an acceptable or good return?

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.

[cryptobeestrategy]

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://bitcointalk.org/index.php?topic=5470605.0