Hey Windsor Park:
Why do some Forex traders say they make 10% a week, or 100% a year, or 5% a day? Is that really possible? Or are they just stretching the truth? Also, if what they say is true, why do you show results on the blog that are so much smaller than 10% a week?
-Befuddled by Forex
Great question! You’d be amazed how often people ask about other trader’s claims. Most of the time, other traders will tell you how much they made (in %), but not how they made it (the settings they used). That’s not an issue here at Windsor Park because we tell you right here on this blog about the Smart Trader settings we use for the Smart Trader test results we provide weekly!
Also, every trader has a different level of risk tolerance, even you. Some are willing to risk more of their account at any one time in order to gather more profit (and more potential loss) than others. And that’s okay.
Remember, most traders agree that the following settings are very conservative: 0.1 lot on a $10,000 account, 0.05 lots on a $5,000 account, 0.25 lots on a $25,000 account. And don’t forget…that is a tenth of a lot on a $10,000 account spread out over all your open orders at any one time. Again, the settings in the previous sentences are very conservative. So, the more lots you risk, the more profit or loss you’ll get from your trades (even 5, 10, 100% a day, week, or year).
So if these traders are claiming “amazing returns”, they either are risking a lot of lots on any one trade, OR… they have a great system that allows them to trade more courageously (like Smart Trader). Shameless plug…I know.
As for the results on the blog that you think are small, let’s do some math. Take a look at the GBPJPY for the last week. It made 0.59% last week and 3.85% over the last 7 weeks. (You know, come to think of it… 3.85% beats out my bank that only pays 1.01% on a 1-year CD and 0.25% per year for my savings account.)
But stop the presses! Smart Trader made 3.85% on $25,000, but the drawdowns are small. “How small are they?” They’re SO SMALL, you can run this same strategy on a $5,000 account. If you did, that same 3.85% on $25,000 ($963) would have been $963 / $5,000 = 19.26% in 7 weeks. That’s fantastic!
So why does Windsor Park show such small % results on the blog? Two reasons come to mind:
- First, the results are the results. Now that you’ve read this blog you can see how easily you can adapt our results to your account.
- Secondly, some people are new to the Forex market and have the following view: “these returns in the Forex market look too good to be true, so they must be fake.” I’ll bet that when you were new to Forex, you had the same thought. So we post modest gains on the blog, in order to not scare anyone away and knowing that all of you experienced traders will do your own math with the numbers we post.
Oh! One more shameless plug. You can always compare more Smart Trader trading results here. That should help out.