The question of profitability Forex is interested, first of all, for those who are just planning to engage in trade or those who intend to invest in a trader and want to evaluate his level of profitability relative to some average value.
If we analyze the trading strategy of different managers, the profitability of their Forex trading can vary from 100 percent or more per week to 1-2% per month, which makes the accounts of the latter comparable to some deposit programs in banks. Thus, the fluctuations are very significant and depend on the trading system of the manager and the level of acceptable risk.
Thus, the yield of 50-100% or more per week or month is extremely high. On the one hand, such trading allows you to quickly return the money invested, but on the other hand it carries with it very big risks of losing everything you had! With a weekly yield of several tens of percent (20-30) the probability of losing everything becomes less, because the risks are limited, but the drawdown can still be quite significant.
Forex profitability and trading systems
The most conservative traders trade without significant drawdown over several months, and acceptable risks are usually limited to 10-15% of the capital. If in this case, the yield is about 7-12% per month, then it is very acceptable. Since, on the one hand, the yield is significantly higher than that in comparison with the same bank deposits, where they promise no more than 10-12% per year (depending on the chosen currency and deposit program). On the other hand, the risks are not as high as those of aggressive traders, where you can lose all your capital in one day.
When investing in a manager, it is better to choose conservative accounts and supplement them with a few aggressive ones. Risk diversification will not let you lose all your capital, and aggressive traders will increase your average return. If we are talking about independent trading, then you yourself limit the risks in your trading system, so you can choose both aggressive tactics and restrained trading on a long interval. The main thing – do not start trading with significant amounts, since novice traders often lose their money. Start with mini-accounts, and when you have the proper experience, you will be able to understand the acceptable risk level for yourself, and determine the average Forex yield per week, per month and year.