Is a 20% Annual Return good ?

[Poker Player]

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.

In other words, what you have done is a simulation of those five years ago until now, and for the last 15 days you have been testing it with real money. It would not be the first time that when testing with money the results are not the expected ones, besides, past returns (and even more if they are simulated) do not guarantee future returns. But supposing you are one of the few traders that get long term profitability, yes, 20% per year is a good return.

[adaseb]

Yes 20% is great but you most likely won’t get this every year even if it was possible in the past. Generally backtesting is never accurate because you don’t take into account slippage and liquidity. You will find that in real life you won’t get the fills you normally want and profits won’t be as high as expected.

[Ben Barubal]

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?

        If you compare it to the bank, that's high because the bank only has a 1%–5% APY. But if the only investment you make is around $100,
you will not feel that $100 has grown. But if that is around 10,000 dollars and then it's 20% APY, somehow you will feel what you have grown because the profit is also around 200 dollars.

       That's why the only people who do this in crypto currency are those who have large holdings in their wallets and are willing to hold their
assets for a year.

[so98nn]

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?

Bro that's highly acceptable if you are capable of doing it. In the current economic crisis it is more than a blessing for you because most of the market is down run by uncertain collapses. It would come to our surprise if there is any financial brokerage firm, mutual fund products or any companies share would give such high returns. I'm wondering what sort of strategy you have built because you are on the roll with this return.

This take some serious skills to work with share market, tackle the crisis impact or maybe have indepth knowledge about the company to invest. Even though you have mastered it so that's big one.

The MF that I joined back in 2022 is minus right now with no guarantee of its recovery anytime soon. I can't even bother asking the agent why is that so because all he answers is it's economic crisis and things are not in favor. I definitely gotta see some one else to do this job. You are safely doing well this market, just keep up those returns.

[TheSpiral]

Accept the return may be its smaller or larger because something is better than nothing and if you don't face any loss throughout the year and get 20 percent return then its enough for you which will increases with passage of time. But if you Loss 40 percent and get 20 percent return then your loss will be more than return which is not a true way of earning.

During some year the price become lower of all the coins and getting profit under such circumstances 5 or 10 profit is even more for you because all the time market is not higher to offer you outcomes that will based on your desire. Minimum percentage of profit will be more for you if you avoid yourself from loss percentage because if you Loss become equal to gain then it implies that your gain is also equal to zero.

[kingvirtus09]

If that applies to Bitcoin, that's high for me, especially if you put large holdings of Bitcoin in stakes or farming. I just don't know about other cryptocurrencies; if there is such a percentage given, are there any others? In these times, it is actually good to accumulate crypto assets.

So let's take advantage of the opportunity while we're still in a bear market anyway. Just save and don't stop until the bull run or the halving of Bitcoin. But how many years is this 20% that you say OP? Is it 1 year or more than 2 years?

[BitcoinTurk]

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?

The annual earnings rate actually varies depending on the person's own wishes and expectations. To express my opinion, I think it is appropriate to earn an annual profit of 20% depending on the capital amount. The reason why I evaluate it depending on the capital amount is that there is not much advantage in gaining 20% profit with small capital on a unit basis. Of course, earning this amount as a percentage is a nice success but there is a big difference between earning 20% with a capital of 1,000 USD and earning 20% with a capital of 100,000 USD.

As I mentioned, if we need to interpret it as a percentage, a gain of 20% or more can definitely be considered quite sufficient because many investment instruments do not offer this much profit on an annual basis.

[tabas]

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?

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%.

Nice, so that means that this is really backed up with real test and you've been doing that for so long. And the percentage that you're projecting is realistic unlike those that I have seen in other platforms that are unrealistic and looks like a too good to be true thing. And hopefully it goes well with your actual test with real money.

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

You're nearing to a month within the next 2 weeks so I hope that it goes well for you and it's nice that you're answering the queries here and providing some clarity to how you've been doing that because most of the posts like this that everyone has seen before seems just like a bluff. How long do you plan to test this on real account?

[rat03gopoh]

If you're satisfied, then it is a good return. This assessment must refer to several factors, in fact Bitcoin has a price trend that is never consistent every year. The most traders hope for is to remain profitable in a bear market. Imo, calculating average profits over several years isn't ideal as a trading evaluation.

[Dunamisx]

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 acceptable, 20% annual reward on return on investment is not too bad, if it were to be more than this I would have said its likely not to be true, many people always think about using high yielding return on investment in other for them to get enough satisfaction of their desired profits, but things doesn't work that way in most cases, the higher the return the higher the risk, that is why we shouldn't be too focused on what gives us a quick return or promise on a vain platter.

[Nrcewker]

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?

The percentage of return completely depends on you mate. If you are happy with this, then yes this will definitely work. If this is a sure sort winning strategy, and if the returns are guaranteed, then why not to increase the amount that you have invested, this can yield you more profits. Now if you want to increase the numbers of the percentage of returns, then you to take risks accordingly. Moreover from my personal experience, no profits are guaranteed, so yes keep us updating about the returns that you are getting.

[tvplus006]

...I managed to create a strategy that yields an average annual return of 20% according to backtesting...

This is a good profit, but only if it is received on a real, not a demo account. And in order to get the right result, you will need a more significant period of time, calculated in several months. But even in this case, the data may be incorrect, since your strategy will not be able to be executed due to market changes.

[Fatunad]

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% per year or 1.66% every month is something that much better compared into those traditional platforms or institutions that we do know offering 1-3% per year on which making up some comparison
then you do know on whats or whose better on which there's no doubt that this is a considerable thing but results on backtesting doesnt mean that it would be surely be that ending up on what you do gain in a span of year.
Why? dealing with crypto space is never been that an assured thing specially into its movement. There's no way that movements would be fixed and something that would really be in uniform on which it would really be just that normal that breaking those analysis would really be just like a normal day on this space which means that adjustments is a must and getting along with the flow will really be a typical thing on here.
If you do set up those analysis with lesser risks and if you are really that contented with those results then go ahead, but be better to be wary about the volatility of the market on which you would really be needing
to be that versatile and never ever make yourself that forgetting on having a couple of back up plans whenever your initial analysis had failed because it would really be just that so normal that market
could break out an analysis in a snap no matter how good and realistic it would be.

[el kaka22]

Warren Buffet may or may not be doing 20% a year. Let me put that out there, it should be explaining how important a 20% return per year is. Obviously he has been doing that for 70 years and that is why there are a lot of people who puts money into his firm and he has a lot of capital to make that 20% return. Making a 20% return on 1000 dollars and 1 billion dollars are not the same and you can't really consider it same success.

However, if you make that type of return per year on the dollar, you will be very very very rich in 50 years as well, just find a website that calculates it for you, put in the starting amount, put in years, and put it that 20% and you will see how rich you will be. Bitcoin could help you with that, I bet that on the long term bitcoin will bring more than 20% return.

[noorman0]

Warren Buffet may or may not be doing 20% a year. Let me put that out there, it should be explaining how important a 20% return per year is. Obviously he has been doing that for 70 years and that is why there are a lot of people who puts money into his firm and he has a lot of capital to make that 20% return. Making a 20% return on 1000 dollars and 1 billion dollars are not the same and you can't really consider it same success.

That is income earned passively, and on the other hand billionaire investors tend to avoid investment instruments with returns that are too large (if any, it is probably only a small part of their investment portfolio).

In the context of trading which is a more active effort than just holding, such returns may be relatively small especially for small capital traders, let's say you only trade $1k for the whole year + $200 in profits. On the other hand, there are several things that need to be counted as your sacrifices, including the time and energy spent.

[cryptobeestrategy]

In other words, what you have done is a simulation of those five years ago until now, and for the last 15 days you have been testing it with real money. It would not be the first time that when testing with money the results are not the expected ones

You're nearing to a month within the next 2 weeks so I hope that it goes well for you and it's nice that you're answering the queries here and providing some clarity to how you've been doing that because most of the posts like this that everyone has seen before seems just like a bluff. How long do you plan to test this on real account?

As of today, 02/10/2023, it has generated a 0.76% return in 17 days. We'll see how it performs until October 15th, when it reaches the 30-day mark. I will upload a link to the Excel file containing all the trades I've opened, generated by the Binance platform. I plan to conduct a backtest for around 6 months.

Yes 20% is great but you most likely won’t get this every year even if it was possible in the past. Generally backtesting is never accurate because you don’t take into account slippage and liquidity. You will find that in real life you won’t get the fills you normally want and profits won’t be as high as expected.

I was thinking the same thing, but slippage isn't as significant since I'm operating within a 3-hour time frame.

I'm wondering what sort of strategy you have built because you are on the roll with this return.

This strategy I've developed operates by averaging purchase prices. The key question is: when to buy? This is where certain mathematical calculations come into play to try to predict market volatility.

But how many years is this 20% that you say OP? Is it 1 year or more than 2 years?

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%.

In the context of trading which is a more active effort than just holding, such returns may be relatively small especially for small capital traders, let's say you only trade $1k for the whole year + $200 in profits. On the other hand, there are several things that need to be counted as your sacrifices, including the time and energy spent.

I developed it on TradingView, and when a buy or sell signal is generated, I receive an alert in my email with the purchase amount and the price at which the limit order should be placed. Currently, I'm testing it in a real account as a trial with a small capital. Once I have my figures sorted out within 6 months, I'll connect it to 3commas to make it automatic.



EXTRA
I want to clarify that this is in the spot market, without leverage, as I prefer not to engage in leveraged trading. However, it's worth noting that it's possible to leverage up to a maximum of 5X, but the risk increases significantly. Since my strategy is based on averaging prices and volatility, it's possible that using high leverage, especially beyond 5X, could lead to account liquidation before the next purchase. I prefer the spot market because it's more comfortable and aligns better with an investment approach. I mention this in case anyone was considering it.

[Kelvinid]

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 is more than enough, in fact, banks can never offer such an amount but can be possible in crypto. As long as you are consistent in your strategy, that certainly works and it can be more especially when the market is moving high. If we have to do this, must still apply the strategy of buying low as I doubt that this will work during the bear season.

As long as we can hold and wait patiently until the price goes high before selling, we can really make a profit from our investment. But if we are impatient, I was certain that it will fail.

[tabas]

You're nearing to a month within the next 2 weeks so I hope that it goes well for you and it's nice that you're answering the queries here and providing some clarity to how you've been doing that because most of the posts like this that everyone has seen before seems just like a bluff. How long do you plan to test this on real account?

As of today, 02/10/2023, it has generated a 0.76% return in 17 days. We'll see how it performs until October 15th, when it reaches the 30-day mark. I will upload a link to the Excel file containing all the trades I've opened, generated by the Binance platform.

Okay, thanks we will see if you've been doing well on the actual since you're good based on your testing with the non actual so should you be done with that, it's nice that you'll share the data.

I plan to conduct a backtest for around 6 months.

That's gonna take time and I'd expect that it's like gonna be a roller coaster ride for you. But since you've been doing the test for so long and you believe in what you do and only you know what's happening currently, good luck with that for 6 months and I hope that it will generate you positive outcome.

[Husires]

20% on any measure, if it is the dollar measure, is bad because on average the price may rise by more than that based on the date of the first opening in January and the last close in December or any average of 12 months make more than 20% unless the strategy will guarantee 20% in the bear market season as happened in 2022, which It can be considered good.
But if it is 20% more than Bitcoin, it is very excellent because Bitcoin is POW and other than trading or loans, there is no way you can achieve a guaranteed profit, even by 1%, and through your talk, you may give the user a guaranteed profit of 5% if we assume that 20% is possible, so If the return is in BTC, you can launch a paid service after sending it to trusted people to make vouch copies for you.

[Latviand]

It's a really good return, your 100 bringing back 20 is nothing to scoff at, if you look at what banks offer when it comes to returns or rather their interest rates, people are flocking on 5% annual return so yeah I think it's a good return but given it's crypto market, you should know that there's a possibility that you might not be able to continue that kind of return unless you have a solid plan.