Is a 20% Annual Return good ?

[Cookdata]

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?

What if your predictive model doesn't go as you expected if your historical data doesn't match up with the current data, have thought of what will happen as we progress? What if bull run never comes as we approach halving? Have you tested it? I would love your swift answer because it is even better for you to test your model before even making assumptions on the 20% annual tool, you should consider what will happened if this doesn't go as plan, the back up plan except you want people to come after you if it doesn't go as plan.

Another thing is, when I see any return on investment that exceed 5% in crypto is nothing but hype that is scam or will definitely end up as scam, if 20% is a good return, why don't you improve the model and make it work for only you, if you can prove that your model works in trading, there are plenty of loans to push the project to where objective and aims tell you to achieve.

I will tell you for free, 20% is too high.  

[uswa56]

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.

In fact, if we look at the risks we face, in my opinion 20% is a small number and not worth it with the big risks in the crypto market, we should be able to get bigger.
However, if you compare it with other investments, 20% is a fairly high return. We also have to look at this realistically because every possible profit will be proportional to the large or small risk we will face.

[TakeItEasy]

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 mostly depends on the portfolio a person has, if he has more portfolio then due to the fear of loss, 20% is better than loss. But if he invests in this type of annual return, then it is better to have a decent portfolio and get a decent profit. There will be no fear of ending with the loss. Most traders have the fear of losing, if you are one of them 20% is great for you. Just stay with it, and if you have some budget, through which you want to do day trading and want to get more, then it will be also the best choice to start trading with that amount.

And also the profit is even small, it is worth it, doesn't matter how much profit you have. But if you are addicted to your 20% annually and suddenly a bull market starts, then you will regret, that should have invested in some other cryptocurrencies and get a huge amount instead of 20%. The main thing in the annual return is, should be invested more to get more.

[Twentyonepaylots]

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.

In fact, if we look at the risks we face, in my opinion 20% is a small number and not worth it with the big risks in the crypto market, we should be able to get bigger.
However, if you compare it with other investments, 20% is a fairly high return. We also have to look at this realistically because every possible profit will be proportional to the large or small risk we will face.

You are right, it is generic to say that 20% is a good number for profit, I agree on this at first because 20% is better than nothing or a loss, but return should be associated with the risk. If you get 20% of return in a very high risk trade I guess it is not worth it, WHY? because you could have lose a 100%, is this worth of the risk? I don't think so. I'll say if you get an annual of 20% profit, that's a pretty good strategy. I wonder if we still need to know the frequency of trade here since we need to the 20% comes from a good winning rate as well.

[Findingnemo]

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.

It is a pretty good achievement to be honest and I suggest you go ahead with the same strategy for long-term trading so that 20% annual returns along with the compounding effect will produce great ROI in the next few years.

20% seems very low compared to the volatile nature of crypto assets and I won't be surprised if many others say it's not enough but from an investor perspective this is something too good and if you manage to hit that value for the next few years then your capital will be doubled. But as I always recommend just go with a maximum of 30% as capital for your trading from your total crypto portfolio value and anything beyond is a huge leap towards risk.

[SquirrelJulietGarden]

20% seems very low compared to the volatile nature of crypto assets and I won't be surprised if many others say it's not enough but from an investor perspective this is something too good and if you manage to hit that value for the next few years then your capital will be doubled.

20% looks to be low and small ROI in cryptocurrency market where you can see many altcoins pump 100% or 200% or even higher within 24 hours or a week. However if it is about a long term ROI, 20% is a very good profitable rate from trading.

Altcoin enthusiasts can x2 x10 their capital with one or two successful bets but after that, they can quickly lose their capital as well by falling in rug pulled projects and fiascos like Terra and FTX. I think you know well about risk of altcoins so the 20% annual ROI from OP's trading strategy is good one. It's just will it be able to work well in different market phases.

But as I always recommend just go with a maximum of 30% as capital for your trading from your total crypto portfolio value and anything beyond is a huge leap towards risk.

With capital management and allocation for trading, I even self-limit it to less than 10% of my capital. The main part of my capital like up to 90% belongs to long term holding and most of them is in BTC, not in altcoins.

[lienfaye]

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?

For me that's pretty good already, so if you put a huge capital then you'll also have a decent return from it. But how certain you're 20% is accurate annually? The market is unstable and the profit is depending on its status so if you can make it to be consistent for annual return then it's acceptable.

Anyway, as long as you're gaining that's a good progress. When we trade or invest, regardless of how much we gain, what matter is we profit, right?

[FinneysTrueVision]

20% APR is very good for Bitcoin trading. Over the past year Bitcoin is up 35% so these returns are certainly realistic. Bitcoin isn't as volatile as it was in its early years. It is possible to have many months of sideways price action and it can take a long time to recover from bear markets. If you were buying Bitcoin leading up to its all time high your strategy might have failed and you would have negative returns right now.

[wxa7115]

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 depends on what you mean by an annual return of 20%, is that 20% on top of what the market by itself will offer to a long term holder or do you simply mean a 20% annual return which is independent of the market conditions we encounter?

If it is the first case then that is a great performance and you should use that strategy as you will earn a fortune with it, but if it is the second scenario then you should just remain as a long term holder as you will make more money this way than with your strategy.

[Xampeuu]

I think if an annual return of 20% on the main account is already a good thing, especially if you use large capital, of course a good return, besides that of course the level of risk taken is small, and worth maintaining, besides that we can carry out strategies different, but with different accounts with different rewards and risks, and we can do research so we can conclude a strategy that suits our trading pattern

[DeathAngel]

A 20% annual return is fantastic & a great profit in any type of investment vehicle. Can you guarantee that though, like really guarantee it? Is it safe, is it secure? Are you the only one with access to this asset, is anybody else in control of it, because if they are it’s not a good idea & a recipe for disaster.

[Hypnosis00]

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?

Well, for me, that was big enough. If that strategy assures such a return, you can really be making rich in trading, and that is absolutely what people are looking for. But the question is if that will happen in real life. It might be working in your backtesting but was not sure it would work in real trade and you probably know why, it is because of emotional dealing and decision-making. These are some factors that cause a different result, until then, at least earning a 10% return is already satisfying.

[Subbir]

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?

Usually, 20% percent profit in a year is very high. If we look at the banks, it is seen that most of the banks are giving 4% percent to 10% percent profit. Now if we look at banks then twenty percent profit is much higher and much more profitable than that. My suggestion is if you don't want to take risks and don't want to trade then 20% percent profit is more important for you.

[Smartvirus]

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?

I feel this is a question only you can answer as, it largely depends on what’s your plan on your trade or capital. I could have even 50% of my capital and still be unsatisfied with the outcome. At other times, I could hope to have several roll over of my capital before the years end and when that isn’t the case, I don’t feel so archived in my aims.

Again, it’s a question of capital. How much capital have you got, how much are you actively trading with and how reliable is your trading strategy. Is it really as it is or you’re just inferring.

Hence, it’s really up to you and I don’t think with a good trading capital, you’ve got much not to be pleased with on a 20% ROI.

[wajik-tempe]

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?

Usually, 20% percent profit in a year is very high. If we look at the banks, it is seen that most of the banks are giving 4% percent to 10% percent profit. Now if we look at banks then twenty percent profit is much higher and much more profitable than that. My suggestion is if you don't want to take risks and don't want to trade then 20% percent profit is more important for you.

Without a doubt, a 20% yearly benefit in the bitcoin market is far bigger and more engaging when contrasted with the nearly mindful rates given by conventional banks. The choice between customary money management decisions, for example, bank investment funds and entering the digital currency market boils down to individual gamble resilience, monetary objectives, and a craving for conceivably better returns.

[yhiaali3]

You are the one who decides whether this annual return is good for you or not, because this varies from one trader to another. Perhaps some of them do not consider this percentage good enough and some of them consider it very good. For me, a 20% annual profit return is very good.

Although I believe that it is difficult to create a strategy with a fixed annual return, if you are actually able to create this strategy, it will be an important achievement and you may be able to share or sell your strategy.

[kentrolla]

That's a decent return if guaranteed but one cannot be 100% sure about returns or percentage of return in crypto as market may behave differently in the upcoming years than what you have back tested, anyways good luck with your prospect because anyone who is well versed with the other ROI and inflation rate will understand 20% is decent number but the problem arise with mindset of people as they expect 10x 100x returns in crypto and has high expectations because they are still unable to digest that's crypto is not a get rich quick ponzi and sudden pump of certain coins adda up to the expectation building.

[bittraffic]

Making a profit in USDT staking which is about 7-5% per year was great when the prices didn't inflate yet. These days, you might need a bigger profit, probably more than 20%. So it still depends on your lifestyle or how many mouths you feed.

20% is good depending on how much is your capital and whether it consumes your daily time. And then you have to evaluate whether this strategy works on all occasions because most strategies have flaws especially when it shifts from a bull to a bear market.

[armanda90]

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.

I am not sure with some trader have capacity with annual profit every year raise to 20% depend on not consistency earn profit every time with cryptocurrency trading. Based on my experienced in trading, there are not impossible with 20% annual profitable earned in cryptocurrency trading and some trader have ability earn more but not guarantee with consistency profit earned every year. Up and down of profitable earn from trading and seems can't guarantee for 20% annual profitable earn but if market or bitcoin keep stable on higher price has opportunity with higher profitable.

In the bank seems difficult earn 20% annual profitable one year due maximum profitable earn under 10% based on ration deposit interested in my country Bank.

[sana54210]

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?

Well, for me, that was big enough. If that strategy assures such a return, you can really be making rich in trading, and that is absolutely what people are looking for. But the question is if that will happen in real life. It might be working in your backtesting but was not sure it would work in real trade and you probably know why, it is because of emotional dealing and decision-making. These are some factors that cause a different result, until then, at least earning a 10% return is already satisfying.

That's the risky stuff that you take on when starting to trade. Not a lot of people end up making a profit right away, not in a single minute, I think it should be important to remember that you are going to end up with some trouble if you are not careful but if you are too careful then you are not going to end up making any profit at all. We should be trying to make some profit when we have the time and we feel like we can risk it, usually it is not all that terrible and it would not mean that we are going to end up with anything that would benefit us.

I know that life is not that simple and we do not feel like risking anything, or we fear that we would risk more than we should, but that's just what this is all about, if we are not careful then we are going to end up with nothing in return. So this is why we need to calculate the risk very well, not small enough that it would not get us any return at all, and not big enough that it would not worth to take on that risk.