Is a 20% Annual Return good ?

[Lakai01]

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.

I don't see it that way at all. Large-scale investors expect average (!) returns of 3 percent per year on projects, e.g. large photovoltaic plants, buildings or large equity portfolios.
Anything above 3% is already considered a utopian high and very unlikely profit. I don't understand how you can say that 20% is not very high. Just calculate that over 5 years ...

Of course, with large-scale investors the invested capital is significantly higher than with our trades, but the idea behind it remains the same: To make constant profits and end up with more money than before the investment. If you want to earn more percentages, you also have to take (significantly) more risk, which, however, over a longer period of time can certainly lead to the fact that the overall balance becomes negative.

[Bitcoinpoly]

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

[pawanjain]

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 hope you are also considering the trading fees and taking it into account. I have seen strategies that look good but when trading fees is added it's not that great.
20% return is very good I would say, but only if you are able to make it after all the deductions.
I would be happy with anything more than 15% to be honest. Compounding it over the years would give a good return.

[leonair]

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?

People always want more.  If you have a passive income or a standard business then getting 20% ​​annual return from Bitcoin trading is not bad.  But only 20% return will not give you a comfortable life if you want to meet your daily expenses with it. And if you want to live your life with 20% return then you need to trade at least $20k with annual return of $4k which you can live with somehow. So whether the 20% return is applicable to you will depend on your financial status. 20% return is a good return for many but not for everyone

[Fuso.hp]

If you can make 20% yearly profit by trading with relatively large amount of money then I will never see that as a bad profit. If you are a good trader and if you have strategy and if you have confidence in yourself that you can make twenty percent profit per year then I will tell you to start trading with more money. When you start trading with more money, your profit will be more at the end of the year. Since with your strategy you can earn 20% profit every year so I think investing more money here is not bad. 

As far as I know trading is risky and not only there is a chance of profit but there is a chance of loss along with the chance of profit so definitely plan your trading with this aspect in mind.

[Silberman]

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?

People always want more.  If you have a passive income or a standard business then getting 20% ​​annual return from Bitcoin trading is not bad.  But only 20% return will not give you a comfortable life if you want to meet your daily expenses with it. And if you want to live your life with 20% return then you need to trade at least $20k with annual return of $4k which you can live with somehow. So whether the 20% return is applicable to you will depend on your financial status. 20% return is a good return for many but not for everyone

You need to also take into account the long term when looking at those profits, because even if it is true that if you do not have a substantial amount of money already then that 20% may not seem like much, if you keep saving money and you keep booking those profits then at some point your capital will grow to the point you could sustain yourself just with your trading profits, which could allow you to eventually leave your job, become a full time trader and then earn even more money thanks to all the free time that you have now available.

[LogitechMouse]

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?

Banks only give a little less than a percent in interest. The Stock Market is giving an average of 8% per year. Bonds give lower return.
Tell me you are sarcastic without telling me your sarcastic. Are you sure you asking if this return is acceptable or not?

Well, it's acceptable since 20% return is considered not just high, but very high already. Now the question is, how consistent you are in doing that. Do you think that you can get 20% annually? TBH, in crypto, there is a way to get that return just by doing basically nothing, and that is thru staking. Both trading, and staking have risks. The only difference is that, you don't need to read charts in staking. Just stake your coins, and wait for it to multiply. There are only a few coins that gives at least 20% though, and most of them are low market cap ones. DOT gives at around 14% annually, ATOM gives ~20%, and most of them are coins that I don't even know.

Overall, 20% return is good already, but it will all comes to how consistent you are in getting that return. I guess good luck with your trading journey, and I hope that you will become a successful trader.

[wajik-tempe]

In a volatile and dangerous market, a 20% yearly return on cryptocurrencies is highly appealing. It requires really high risk management abilities to get those outcomes even if your method appears to work well for Bitcoin, it may be worthwhile to investigate how it works with other cryptocurrencies for asset diversification. Finally, while earnings are vital, we must also preserve them since we know how "safe" and "unsafe" assets in the form of cryptocurrency are.

[poodle63]

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 hope you are also considering the trading fees and taking it into account. I have seen strategies that look good but when trading fees is added it's not that great.
20% return is very good I would say, but only if you are able to make it after all the deductions.
I would be happy with anything more than 15% to be honest. Compounding it over the years would give a good return.

thats true with compounding it will be more worth it but we are talking about annual return of trading here whereas we all know one mistake in making decision could lead half if not entire capital vanish into thin air.
20% honestly is still arguable whether it's worth it or not when it comes to this, if its investment where the risk significantly lesser than trading then its already good enough, even deposits not even half of it.
therefore i don't think its such awesome income either.
honestly if we got that rate as an annual return, we might recalculate whether it worth the risk or not, seeing from past trading history, whether its worth it putting that much capital for such returns.

[cryptobeestrategy]

**Performance in 31 Days:** Forward test
I've completed twelve trades,. Over these 31 days, I've achieved a return of 1.91%, which translates to a daily return of 0.06%. Projected over a year, that would be 22.52%, but this can vary based on market behavior. It's important to note that this is in the spot market. Can it be done in futures? Yes, and with leverage (2x or 3x), you can easily reach 60% to 70% returns due to compound interest. However, I prefer the spot market as I see it more as a long-term investment.

Here's the link to the spreadsheet https://docs.google.com/spreadsheets/d/1nfNuJB5ZkewvZ8A9ACPJik0p3Vq1g-TO/edit?usp=sharing&ouid=105063930982027234018&rtpof=true&sd=true where you can see all the trades I've made, a screenshot of how the strategy operates on TradingView, and a sheet of risk. I'll provide another update at 60 days and continue until I reach 180 days, which will conclude my testing, and then I'll consider adding more capital. Feel free to ask anything...

[Hamphser]

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 hope you are also considering the trading fees and taking it into account. I have seen strategies that look good but when trading fees is added it's not that great.
20% return is very good I would say, but only if you are able to make it after all the deductions.
I would be happy with anything more than 15% to be honest. Compounding it over the years would give a good return.

thats true with compounding it will be more worth it but we are talking about annual return of trading here whereas we all know one mistake in making decision could lead half if not entire capital vanish into thin air.
20% honestly is still arguable whether it's worth it or not when it comes to this, if its investment where the risk significantly lesser than trading then its already good enough, even deposits not even half of it.
therefore i don't think its such awesome income either.
honestly if we got that rate as an annual return, we might recalculate whether it worth the risk or not, seeing from past trading history, whether its worth it putting that much capital for such returns.

20% is really that easy to gain but of course it would really be needing that somewhat active dealing with the market or simply making up trades on active manner.It doesnt really need up to wait up for a year before you could really be able to reach out this annual gain but if you do really like to have that lesser risks then 20% is enough or good which is way more  than with those banks been offering but if we do speak about staking which APY's are really that something interesting but its not. Risks is there as always on which we do consider that value of crypto doesnt really stay on one place on which tendency or chances
being unprofitable would really be always  there.

Totally it would really be just that depending on you on what are those % returns that you would really be preferring into as long you do make yourself go with the path on which you are comfortable with then
it would really be always falls down into your own choice. We are really that too skeptical and mindful about risks factor which it is really that a normal approach
on which we cant really be just taking actions without minding about those probabilities.

[goldkingcoiner]

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% is more than acceptable, I would say. In my experience 30% is more realistic if you really know what you are doing and have a lot of years of experience in trading, technical analysis and fundamental analysis. And even then there are many traps for emotional traders to fall into. Even I, myself sometimes do something stupid and act on emotion without even realizing it until its too late.

Everybody is only human. Especially in trading.

[tjtonmoy]

Calculate your profit and if you are satisfied with it then that percentage annual return is good for you. But money is something that people can't avoid. The more it is the better. It is hard to be happy with what you get. But if you have a plan and think it as an investment then it could be a good solution. 20% annually could be decent amount if you are looking for a slow but steady less risky investment. But in the end it's all about your satisfaction and if you are happy with it then it's all good.

But why stop there? In order to evolve we need to take risks in our life. If we want to become successful then taking risk is inevitable. Spread your investment into multiple stage. You can keep your 20% annual return while you can go for a higher annual return and invest on that. Your 20% annual return will keep on coming while you work on making more money. I think with this strategy you can have the best of the both worlds.

[fullhdpixel]

**Performance in 31 Days:** Forward test
I've completed twelve trades,. Over these 31 days, I've achieved a return of 1.91%, which translates to a daily return of 0.06%. Projected over a year, that would be 22.52%, but this can vary based on market behavior. It's important to note that this is in the spot market. Can it be done in futures? Yes, and with leverage (2x or 3x), you can easily reach 60% to 70% returns due to compound interest. However, I prefer the spot market as I see it more as a long-term investment.

Here's the link to the spreadsheet https://docs.google.com/spreadsheets/d/1nfNuJB5ZkewvZ8A9ACPJik0p3Vq1g-TO/edit?usp=sharing&ouid=105063930982027234018&rtpof=true&sd=true where you can see all the trades I've made, a screenshot of how the strategy operates on TradingView, and a sheet of risk. I'll provide another update at 60 days and continue until I reach 180 days, which will conclude my testing, and then I'll consider adding more capital. Feel free to ask anything...

I see that percentage being extremely low for a whole month. I know that 20% a year doesn't sound really bad but it is only if you are not doing anything and just getting that percentage for keeping your funds idle somewhere, but if you are making manual trades and still getting such a low percentage, maybe you should up your game a little bit. I'm not asking you to take bigger risks, but you should gain more knowledge and try to take out more profit from every single trade instead of settling down on just 0.06% per day.

You should at least be able to get 1% profit from each trade of you are that much careful, people get even more and they don't even that such high risks. You should try and learn a bit more about how you should open and close your trades in the spot market and I'm pretty sure that you can get more than that.

[rhomelmabini]

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?

Oohh, if you think like a traditional player I think that's surely acceptable but psychologically we humans tend to want more than that. A bear market in crypto with 20% annual return is still low and for me it needs to be higher than that depending on what type of investment you venture or what coins you're holding, that's what matters to maximize a return.

[Tolino]

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

[bitgolden]

Calculate your profit and if you are satisfied with it then that percentage annual return is good for you. But money is something that people can't avoid. The more it is the better. It is hard to be happy with what you get. But if you have a plan and think it as an investment then it could be a good solution. 20% annually could be decent amount if you are looking for a slow but steady less risky investment. But in the end it's all about your satisfaction and if you are happy with it then it's all good.

But why stop there? In order to evolve we need to take risks in our life. If we want to become successful then taking risk is inevitable. Spread your investment into multiple stage. You can keep your 20% annual return while you can go for a higher annual return and invest on that. Your 20% annual return will keep on coming while you work on making more money. I think with this strategy you can have the best of the both worlds.

There is a limit where it's okay to not have more, you will want to have more but it would be ok if you fail to, but under that limit it's just that you end up having life trouble. For example in my nation you can live with 1k dollars a month, that's a good income and you could live with that on a normal period, but what if something goes wrong?

What if you get sick? What if something at your house breaks and you need to buy a new one? I mean all these are extra money, so that means if I make 2k that's good? That sounds about right, not bad, I mean still not rich at all but those urgent things and problems could be taken care of, or at least could be better, but what if 5k? That would be lovely, then I would be able to say that I do not need more money, would I want more money? Sure, but not need that's "want" that's different. So, people are looking to make more than that need, not want, if they make more than they need, that is good, regardless of what the % annual is.

[tjtonmoy]

~Snip

I get your point. An emergency situation could come at any time in our life and for that we need to be prepared. Talking about OP, 20% annual return could be a good start but we should not be limited to only that. Whatever we earn we need to keep saving for those emergency situations. Investment is one thing and saving is another. Investment could bring profit or loss, but savings should be kept aside from everything only for emergency situations.

And when it comes to money, no one is satisfied with what they are making. Look at soccer player Messi or Ronaldo, Don't they have enough money to live their whole life? Yet they are still making money. I'm not comparing us to them because that won't be a logical comparison. But the fact is when there's an opportunity we should always take it. Because unfortunate situations are bound to come and no one knows when it will come.
Once we learn what money is we keep on pursuing it. So I agree that it is not a need but want. Who doesn't want money?

[KingsDen]

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.

I don't see it that way at all. Large-scale investors expect average (!) returns of 3 percent per year on projects, e.g. large photovoltaic plants, buildings or large equity portfolios.
Anything above 3% is already considered a utopian high and very unlikely profit. I don't understand how you can say that 20% is not very high. Just calculate that over 5 years ...

I know that this is purely subjective and according to what someone said in this thread, but I find it difficult finding his username to mention him. Some people like to earn more than they need, while some just want to earn normal and live a comfortable life. In a safe investment, 20% is high and risky. 10% is fair enough. There is no financial advisor that will tell you that 20% annual return is bad.

~Snip

I get your point. An emergency situation could come at any time in our life and for that we need to be prepared. Talking about OP, 20% annual return could be a good start but we should not be limited to only that.

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.

[inthelongrun]

Generally speaking, 20% is already a good return on investment, especially since we are still in a bear season. But there are more follow-up questions that will make or break it.

1. Is the 20% annual return material to you?
2. How much capital will you risk to make that 20% gain turn into something material and worth the effort?
3. How many trades are needed to reach that 20% annual return?

Because we need to make sure everything is worth our time and effort. Trading can be stressful too.

Another thing to consider is that we are already approaching bitcoin's halving where it is anticipated that a big bull run will happen in the next 2 years. If you check on bitcoin's volatility even at this stage, 20% is not that big. All bitcoin halvings break their previous ATHs the following year. This means bitcoin is expected to reach $69k again or more most likely by 2025. And $69k is more than 200% of the current price.

So if you have ample of time daily to do regular trades and the capital then you can proceed. But if you are a busy person with lots of stuff to do in life then it is better to do a regular DCA or daily cost averaging on bitcoin and maybe on some altcoins.