An updated view for profits and staking

A place to discuss anything.
Post Reply
stueytrader
Posts: 863
Joined: Tue Dec 15, 2015 6:47 pm

Apologies for posing this rather perennial question, but I do feel it is something that is rather due an 'update' for our modern trading times and environments. Times, exchanges, markets, the sport may have changed, so has this question and answer?

As a relation to your trading bank size (your full trading capital), approximately what % of your bank would you consider a realistic profit figure? I realise this will be a generalisation as different markets/days will vary, but what average do you consider both realistic, targetable on a fairly regular basis (as a % of your bank)?

I am only interested in this question in relation to horse race trading, just to note, as other markets may vary IMO.

My own estimate is currently that I can look to make approximately 8-10% of my bank size, as a realistic average day profit.

Would love to hear if people agree or disagree with that figure, and why. Higher, lower, similar?
User avatar
Crazyskier
Posts: 1157
Joined: Sat Feb 06, 2016 6:36 pm

stueytrader wrote:
Sat Mar 16, 2019 2:05 pm
Apologies for posing this rather perennial question, but I do feel it is something that is rather due an 'update' for our modern trading times and environments. Times, exchanges, markets, the sport may have changed, so has this question and answer?

As a relation to your trading bank size (your full trading capital), approximately what % of your bank would you consider a realistic profit figure? I realise this will be a generalisation as different markets/days will vary, but what average do you consider both realistic, targetable on a fairly regular basis (as a % of your staking)?

I am only interested in this question in relation to horse race trading, just to note, as other markets may vary IMO.

My own estimate is currently that I can look to make approximately 8-10% of my bank size, as a realistic average day profit.

Would love to hear if people agree or disagree with that figure, and why. Higher, lower, similar?
Personally my bank is kept at £200 - £500 with daily profits averaging £3 - £17, typically £12 (100% automated). I've tried upscaling my stakes but my strategy relies upon being 'invisible' below £2 mostly, with high volumes of penny pinching, so it's a shame that I can't scale what is now a very mature tried-and-tested strategy.

Anyways, those are my figures as requested.

CS
spreadbetting
Posts: 3140
Joined: Sun Jan 31, 2010 8:06 pm

If you're making 8-10% of your bank size daily, compounding that means you should be a very rich man.

But I think bank sizes can get very misleading as few of us will ever be able to utilise all the money we have at our disposal as 'banks'. If I lost my Betfair bank through some fluke I could simply top it up again and imagine many others could easily do the same. Unfortunately market liquidity has a big effect on what sort of percentage you can gain daily. You might be better off looking at your turnover ROI as a better guide.
User avatar
Derek27
Posts: 23477
Joined: Wed Aug 30, 2017 11:44 am
Location: UK

stueytrader wrote:
Sat Mar 16, 2019 2:05 pm
My own estimate is currently that I can look to make approximately 8-10% of my bank size, as a realistic average day profit.
That is impressive, but it all depends on the size of your bank and how scalable your methods are. With £100 I think I may struggle to maintain a 5% average daily profit over a period of time ‒ most days profits would have to be well over 5% to accommodate losing days. With £1000 or £10K that figure is bound to be lower.

At your profit rate you must be doubling your bank every two weeks. Do you withdraw the profits or have you considered scaling up?
stueytrader
Posts: 863
Joined: Tue Dec 15, 2015 6:47 pm

Actually guys, I realised I may have slightly misdirected you with my wording there.

I didn't mean that I have managed to average that high across all days (I wish :lol: )

What I actually meant was my average 'winning' total for my positive days - of course there are also days where my total is negative, so the overall average is a fair bit below that (estimate around 4-5%). Sorry if I wasn't quite clear about that wording.

What I'm getting at is what sort of range of realistic profit figures would you be aiming to look to achieve, without overstaking of course, on a given day. A sort of starting point in your thinking so to speak.

I aim (and often do make) for around that 8-10% by the end of the day, as my realistic day target.
Last edited by stueytrader on Sat Mar 16, 2019 5:58 pm, edited 1 time in total.
stueytrader
Posts: 863
Joined: Tue Dec 15, 2015 6:47 pm

I take the point about markets also limiting what you can reasonably stake, and ROI can sometimes be a better way to frame it too.
stueytrader
Posts: 863
Joined: Tue Dec 15, 2015 6:47 pm

I should just add (for info) I am probably not one of your more standard 'traders' in the sense that I position take also to some degree in many of my trades.
Post Reply

Return to “General discussion”