Is a 20% Annual Return good ?

[tvplus006]

...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.

In this case, you miss about half of the opportunities when the market is in a downward movement. I think that you will rethink this over time and will trade futures with at least a minimum leverage of x1. In the end, it's almost the same as spot trading.

[shinratensei_]

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.

there's fundamental difference within staking stablecoin and get 7-5% annually, and trading since the risk involved also different, with stablecoin you can be sure your coin wouldn't get eaten by inflation and therefore you can just be rest assured that the coin you staked gonna retain its value and also getting that additional 7% as a profit, meanwhile with spot trading yes, 20% far surpasses stablecoin staking annual yield but you risk your capital to the dumpings which basically could make your capital turns into zero if worst comes to worst.
therefore i don't think 20% is really good enough, too long to get profit, it should be more than that honestly considering the risk. but of course an individual might have different opinion.

[KingsDen]

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% annual ROI is a good one if it is consistently achievable. Have you developed a strategy that will give you this consistently? If yes, it is a nice return. Other investment which is not related to volatility can boost of 20% ROI and achieve it, but any investment that is volatile is always risky. There is every possibility that throughout a whole year will be a period of bear market as we have seen in this year. In such bear market years it might be difficult for you to hit your return of investment with the tool you developed.

[AnonBitCoiner]

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 20% annual return is impressive especially when you are newbie. Numerous people looking for one month rich strategy and as a result they loss so much while your strategy is looking easily achievable because risk involved in btc is very low and you can make it from bitcoin volatility. Some people will not happy with just 20% return nut it's depends upon investment goals and risk tolerance. some want high returns while some will feel comfort and prioritize lower risk with stability.

I am interested to know more about this strategy, if its proves to be easy and low risk then newbies should also try it  of
rather than diving into the high risk coins. Your strategy will not be working same with other, it will help to think about  alternative strategy which is best suitable with our investment management.

[Out of mind]

It will depend on the currency you invest in. Also, 20% return would be best for BTC because there is no inflation, so you can do it in BTC. Moreover, if you do it in USD it will also be good if you get 20% rater here also your investment can be good. But I think it's best to do it in BTC as it can give you good amount of return and even if its price goes down it will go up again later. and if you hold BTC it will always give you profit and there is no risk of losing your money. Moreover, you have to accept that trading always involves profit and loss. There are some active trading platforms that are not to be trusted, they often give wrong decisions. So you need to gain knowledge about trading well first, and you need to take risk that any time you can lose money by trading.

[tvplus006]

It will depend on the currency you invest in. Also, 20% return would be best for BTC because there is no inflation, so you can do it in BTC. Moreover, if you do it in USD it will also be good if you get 20% rater here also your investment can be good. But I think it's best to do it in BTC as it can give you good amount of return and even if its price goes down it will go up again later. and if you hold BTC it will always give you profit and there is no risk of losing your money. Moreover, you have to accept that trading always involves profit and loss. There are some active trading platforms that are not to be trusted, they often give wrong decisions. So you need to gain knowledge about trading well first, and you need to take risk that any time you can lose money by trading.

It does not matter what the OP will get a profit in, the main thing is that this profit is stable. In addition, in a bear market, a profit in stablecoins will be more attractive than a profit in Bitcoins. After all, he can invest his profit in Bitcoins at any time. Eventually, he can invest his profit in Bitcoins at any time, choosing the most appropriate time and price.

[TheUltraElite]

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

I think you should ask this question to yourself, what you find as an acceptable return, not us. Someone may get 100% returns and still not be happy about it while others may be happy with a meager 2%. Getting more than 15% per year is a good return if you ask me, but I would also like to know how much trust you can put in an automated platform rather than your own moves of buying and selling over the long term.

For example you could run the algo there and get that returns while you can also buy at 20k and sell at 70k USD and see the 3.5x profits. I find it easier to sleep when I have my coins in my own control and hence I dont use platforms like these. Rest is yours to decide.

[EarnOnVictor]

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 have two pieces of advice for you here, First, regarding your question, it has to be based on the capital you are using. You can't be trading with $100 and depend on it and still believe that a 20% annual return will be able to pay for your stress, expenses and internet billings. It's better to do something else than to trade and not get a good return from it. For those with big capital, there is nothing bad in that as long as the money is sure. But unfortunately, trading is not guaranteed, results will always vary, even if the trader does not lose annually.

Second, since you've mentioned backtesting and not forward testing, your plan is a failure even before it starts. I've never seen a backtested result that is eventually replicated in the live results, and you might not. Don't just put your mind on it yet.

[Blowon]

it is good. 20% per year is the same as if you were a safe investment. if this is some kind of staking I think it is worth it and it is definitely low risk unlike most which use high APY. unless it's trading for 20% annually, that's too little. I think it is better to take even 200% more if it is in the annual term because it is long term.

[jeraldskie11]

...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.

In this case, you miss about half of the opportunities when the market is in a downward movement. I think that you will rethink this over time and will trade futures with at least a minimum leverage of x1. In the end, it's almost the same as spot trading.

When you spot trade, you only make money when the price of Bitcoin goes up. But when the bearish market starts, it will be difficult to make a profit because the price will go down. That's why it's also a good idea to use 1x leverage in futures trading to still make a profit even in a down trend, but it's not the same as a spot because it has no liquidation, it's possible that your trade will be liquidated if you don't put a stop loss. That's the only disadvantage I see in futures trading.

[lixer]

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.  

Yes, he should have created a back up plan because in cryptos, everything here is unexpected even though 20 percent looks realistic for an annual or yearly return, especially if the strategy is a good one. Some past price movements may not repeat again but when it comes to the halving I think it is always followed or there will always be a bull run that can happen after it.

5 percent is much lower than in 20 but it all depends on the source of the signals or strategies that we are getting because a scam can happen no matter what is the values they are presenting. If he can't prove the credibility of this model, then I doubt even he himself will try it.

[tvplus006]

...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.

In this case, you miss about half of the opportunities when the market is in a downward movement. I think that you will rethink this over time and will trade futures with at least a minimum leverage of x1. In the end, it's almost the same as spot trading.

When you spot trade, you only make money when the price of Bitcoin goes up. But when the bearish market starts, it will be difficult to make a profit because the price will go down. That's why it's also a good idea to use 1x leverage in futures trading to still make a profit even in a down trend, but it's not the same as a spot because it has no liquidation, it's possible that your trade will be liquidated if you don't put a stop loss. That's the only disadvantage I see in futures trading.

If you open a short position with x1 leverage, then your position will be liquidated by the exchange only if the price reaches zero. As you understand, this is practically impossible not only for Bitcoin, but also for most of the top altcoins. And if indeed the price reaches zero, then your spot position will also be virtually liquidated.

[mindrust]

Not just good it is great. The average return of S&P500 since 1930’s is ~10%. If you can generate 20% every year and start with $200k, you will be a millionaire in 10 years. That’s x5 return and it beats the inflation... The question is, can you do this every year? Maybe you think %20 is a low number. That happens when you invest a lot in crypto but for the traditional investments, 20% annual returns is a lot and usually unsustainable. If you somehow found a way of making 20% every year, don’t let it go. You are basically printing money.

[abel1337]

Not just good it is great. The average return of S&P500 since 1930’s is ~10%. If you can generate 20% every year and start with $200k, you will be a millionaire in 10 years. That’s x5 return and it beats the inflation... The question is, can you do this every year? Maybe you think %20 is a low number. That happens when you invest a lot in crypto but for the traditional investments, 20% annual returns is a lot and usually unsustainable. If you somehow found a way of making 20% every year, don’t let it go. You are basically printing money.

True. Imagine if you have million to as a starting capital and there's no way that you will lose. I'm sure that strategy would be the greatest strategy of all time if it's an assured 20% annually. But yeah, the consistency is surely uncertain. We don't have a clue how does the strategy work but if I were have that kind of formula and I know it's working, I will continue doing it since I believe it's a good return. The only enemy you have in this kind of strategy is the greediness that is hiding with in you, maybe one day, 20% isn't enough for you and you want to increase it.

[tvplus006]

Not just good it is great. The average return of S&P500 since 1930’s is ~10%. If you can generate 20% every year and start with $200k, you will be a millionaire in 10 years. ..

Mate, you have something really bad with math) With a yield of 20% per annum, the OP will be able to earn $40,000 in 1 year. Even taking into account the compound interest, OP will not become a millionaire in 10 years. And what is more likely, he may lose them altogether if his strategy turns out to be wrong.

[Mpamaegbu]

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?

That's a crazy ROI, if you asked me. That's if you meant that the strategy would run on its own and you as a passive partner to earn passively. In simpler explanation, what that translates to if I were to put a figure to it is this – 20% on $100,000 as return on investment is $20,000. That's very enticing for anyone who would earn passively.

If I've a strategy like that and I ain't trading it actively by myself, I would consider 20% a great deal. However, if I'm trading it myself I want to earn higher than that. This is because I will be throwing in my all and wouldn't have the luxury of other commitments like I would when I'm earning passively.

[wxa7115]

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.  

Yes, he should have created a back up plan because in cryptos, everything here is unexpected even though 20 percent looks realistic for an annual or yearly return, especially if the strategy is a good one. Some past price movements may not repeat again but when it comes to the halving I think it is always followed or there will always be a bull run that can happen after it.

5 percent is much lower than in 20 but it all depends on the source of the signals or strategies that we are getting because a scam can happen no matter what is the values they are presenting. If he can't prove the credibility of this model, then I doubt even he himself will try it.

Depending on the asset we are talking about 20% may be a lot or not, if we were talking about stocks I would consider 20% per year to be an unrealistic goal, as some of the best traders there earn 10% per year and that is enough for them to create their own trading firm and manage hundreds of millions of dollars for their clients.

However 20% per year by investing in bitcoin should be possible as even a single trade could be enough to get that amount if you are able to enter at the perfect time, what we do not know is if such a strategy is sustainable, as bitcoin has not existed for long enough to know if this is the case.

[Zigabel]

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?

Personally 20% annual return is poor and I think that strategy is one that is playing too safe this is with exception to huge capitals. The higher your capital the lower your expected ROI percentage but with a little capital this will definitely not make sense at all, I wouldn't accept a 20% annual return on a $10k dollar portfolio, if it's quarterly it could be considered on basis of consistency.

In as much as we try to be conservative enough not to want to risk so much and not become miserable with losses some percentage on certain portfolio just wouldn't make sense and would look like a joke but for bigger portfolio it will be acceptable as it will definitely make a lot of sense, a typical example would be with a $50millon portfolio 20% per anum is a whole lot and would make a lot of sense as would do when compared to a $10k portfolio per anum that's about $2k, waiting a whole year to get $2k is not making much of a sense when you have $10k in capital.

[Yogee]

Not just good it is great. The average return of S&P500 since 1930’s is ~10%. If you can generate 20% every year and start with $200k, you will be a millionaire in 10 years. ..

Mate, you have something really bad with math) With a yield of 20% per annum, the OP will be able to earn $40,000 in 1 year. Even taking into account the compound interest, OP will not become a millionaire in 10 years. And what is more likely, he may lose them altogether if his strategy turns out to be wrong.

mindrust is probably assuming that all the gains earned each year will be added to the initial capital and everything will be rolled over.

Year 1 - $240,000
Year 2 - $288,000
Year 3 - $345,600

If he can consistently stay 20% up then it's even possible to become a millionaire in 9 years.

[....]
waiting a whole year to get $2k is not making much of a sense when you have $10k in capital.

You could probably earn more than that just by sitting on an investment depending on the timing.

[Japinat]

I was not saying is not but it was more than enough to consider in trading. If someone got it to work consistently, then you can imagine yourself becoming rich a few years from the time you started. But the question is if that really exists in trading. Because with the volatility of the market and especially when bearish comes to happen, you can never expect such ROI. I would tell you OP that no matter what we do, we can't say there is consistency in trading. You may gain huge today but not sure by tomorrow and in the following days, it might be a big loss.