Is a 20% Annual Return good ?

[cryptobeestrategy]

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?

[_act_]

What some people consider as good return is to never lose a trade. Even if it is 1% and no loss, it is a good return. As for me, I will prefer at least 100% annual profit but it also depends on the amount of money that you put in it. The higher the money the lower you will want the risk to be and the more the lower the risks, the lower the return in percentage.

[tabas]

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?

Yes, that's an acceptable return but are you able to prove that it can happen to you through trading? How many times did you back tested that? Having an specific percentage of profit or ROI annually is hard to hit. It's because this is a volatile market and you will never know how much you'll be earning through trading. While you can actually make good money if you've got that percentage and then you've got a huge capital, that makes sense but to think of how much exact it is is like that might not happen. Another thing, this topic belongs to the Trading Discussion.

[Upgrade00]

There is no acceptable return percentage. Traders lose and win to very varying degrees depending on their skill and control of emotions, and a bit of luck. Many traders will want something more risky that 20% which can promise a some more profits, but winning no matter how small is better than losses.

But since there are no guarantees, even with backtesting there is no guarantee of profits.

[Wapfika]

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?

Of course yes, any form of profit is good when it’s consistent. 20% is already an insane percentage for fixed profit yearly when you have high capital invested. Banks only offer below 5% while most defi platform offer below 10% APY with their stablecoin and top coin staking.

But this acceptability on the percentage still varies on how much margin you are using because it’s useless to have 20% profit while the total profit in fiat value is just a penny. To be precise, it’s based on your preference on the profit amount to categorize it as good but 20% profit generally speaking is already above good return.

[_BlackStar]

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?

Getting an average return of 20% per year is quite good if you trade - in fact it is still better than the return on my bitcoin investment in the last 10 months. So far I've had 15% returns in the last 10 months - but this is still worth enough for me to accept as a holder.

The thing is investing and trading are of course different - but in most cases I think traders always have a hard time maintaining their return percentages consistently. I don't know how honest you are about the annual percentage return on your trades - but I don't think you need to lie about it. 20% is pretty good - it's your profit, not someone else's.

-snip-

Another thing, this topic belongs to the Trading Discussion.

It has been reported.

[EFS]

It depends on the currency you invested. %20 return for USD would be good, because it would be higher than inflation rate. %20 return for TRY would be a disaster because annual inflation is more than %100. %20 return for BTC would be the best one because there's no inflation. Even if Bitcoin price goes down you would know it will go up again. As long as you keep your BTC you don't lose anything.
As for how you got the 20% return, I wouldn't trust any automated trading program. There is both winning and losing with trading. You have to accept risks first.

[Bananington]

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

20% is good until you start getting it, and after a while it no longer is enough and then you need to set a higher target. Then maybe you set a target of 40% as the percentage that is now a good return and then you start getting it and it becomes no longer enough again. In a straightforward sentence, I mean any percentage you see as a good return is only good until you start getting it. To someone who has never recorded 20% annual good return, that target is good for them, for another person who has had that return, it no longer will be acceptable, a higher target will be needed.

[o48o]

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?

Acceptable to me, yes, acceptable to most people, yes. But only thing counts that is it acceptable to yourself. Anything that isn't taking bag down with the bear market is excellent results. On the other hand, with the bull market, if you are doing worse returns then just holding... Well results are obvious just by comparison, right?

But i have to say that you are setting bar pretty low with only 20% gains.

[jeraldskie11]

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?

How do you know that you can make up to 20% profit every year in trading? I'm not sure if you backtested your strategy for a year or just a couple of days. If you backtest for one year, I can be sure that you will reach that level of profit. For me, you will not only be able to reach 20% profit next year because the halving phase of Bitcoin will happen. We know from the history of Bitcoin that as long as the halving phase starts, after that, the price of Bitcoin will increase. It's a huge profit if you compare it to your annual income from the Bank.

[Wexnident]

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's good. I say anything above your capital is good enough and can be considered as a success already, anything past that is just a bonus. Even more so if this was a stable annual return (which I doubt, but hey who knows), heck even a 10% stable return is more than enough to be called a success imo.

I'd say judge it for yourself still though, 20% may look small if your capital was small in the first place so you might not really feel it. Depends on how you feel about it, but with a smaller capital I'd rathe risk it for possible bigger gains.

[poodle63]

good or not depends on the risk accompanied by this yield, if annual is 20% honestly thats quite low, but also need to observe the risk, if it doesn't expose your investment capital to the risk of losing it just because the market is getting red and bearish, then i guess you will be okay. but honestly spot trading, 20% gain for a whole year is miniscule, the only way to make it worth it is if you have big capital that at the very least allows you to earn quite the sum then it will be worth it.
otherwise if its just thousand dollars gaining 20% a year, it will be just a waste of time in my opinion.

[cryptobeestrategy]

Yes, that's an acceptable return but are you able to prove that it can happen to you through trading? How many times did you back tested that?

As for how you got the 20% return, I wouldn't trust any automated trading program. There is both winning and losing with trading. You have to accept risks first.

How do you know that you can make up to 20% profit every year in trading?

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%. Currently, I am actively testing it on a real account since September 15th.

[lombok]

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?

20 percent per trade in the short term is enough in my opinion. The aim of trading is to seek profits, whatever it is, even 1 percent if one trade is more than enough. Sometimes what makes trading a loss and a waste is greed, the desire to get more even though the market is no longer able to move in the direction we are going.

[GreatArkansas]

What some people consider as good return is to never lose a trade. Even if it is 1% and no loss, it is a good return. As for me, I will prefer at least 100% annual profit but it also depends on the amount of money that you put in it. The higher the money the lower you will want the risk to be and the more the lower the risks, the lower the return in percentage.

This is what is on my mind also.
You are already profitable here, especially if it is 20%, that's already a huge win. Just make sure to maintain it. If you manage to do it consistently, you can really be a profitable trader, you can just improve other things once you area already profiting this good amount, like increasing your capital, learning more different strategy or better risk management.
But  overall, that's already a win for me

[freedomgo]

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?

More than acceptable. Anyway, that's still based on your capital. If you compound that amount without taking out your profit, it will yield a huge amount of money in the long run. As long as it's consistent, you should be happy with that. Even putting your money in a bank, which I consider safe, does not generate that kind of percentage, so yeah, stick with that.

[cryptobeestrategy]

But this acceptability on the percentage still varies on how much margin you are using because it’s useless to have 20% profit while the total profit in fiat value is just a penny.

otherwise if its just thousand dollars gaining 20% a year, it will be just a waste of time in my opinion.

Exactly, it would work well with accounts that have slightly higher capital levels. But it's better than having it in the bank or staking, right?

[hd49728]

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?

20% APY is a good return rate and you do it naturally without joining Ponzi scheme. Terra collapsed because of their high APYs which failed to maintain when bankrun happened in May 2022.

I want to ask you, 20% is a good rate but if it is a figure you get from back-testing (even one year backwards), it does not guarantee you will get a same APY when you are in actual trading with the strategy moving forwards.

What will be your risk management if the 20% APY fails in actual trading?

[cryptobeestrategy]

Anything that isn't taking bag down with the bear market is excellent results. On the other hand, with the bull market, if you are doing worse returns then just holding... Well results are obvious just by comparison, right?

For me, you will not only be able to reach 20% profit next year because the halving phase of Bitcoin will happen. We know from the history of Bitcoin that as long as the halving phase starts, after that, the price of Bitcoin will increase. It's a huge profit if you compare it to your annual income from the Bank.

It all depends on one's preferences and risk tolerance. Whether it's aiming for a 20% return over 3, 4, or 5 years, or the potential for a 100% return within five years, it's important to acknowledge the inherent uncertainty when dealing with assets like Bitcoin.

[cryptobeestrategy]

I want to ask you, 20% is a good rate but if it is a figure you get from back-testing (even one year backwards), it does not guarantee you will get a same APY when you are in actual trading with the strategy moving forwards.

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%. Currently, I am actively testing it on a real account since September 15th.

The way my strategy works is by averaging purchase prices. I buy when volatility is high, making it less likely to fail, all supported by the backtest. Of course, in real trading, anything can happen.