What kind of returns can I expect

AI & Machine learning
1

Hi,



I was wondering about the returns we can realistically aim for with our trading strategies. Following a recent discussion with a friend who operates a private equity firm, he suggested that achieving a consistent 12.5% return would place one in the top 5% of traders globally. Is there any evidence to substantiate this claim? I am not seeking an anomalous 100% annual return but rather a consistent average over a five-year period. Thank you for your assistance.

John

2

Hi,



While you can set an aim of achieving consistent returns of 12.5%, claiming that it would place you in the top 5% of traders globally may oversimplify the complexities of trading. So, rather than focusing on an absolute return like 12.5%, using a benchmark index helps frame performance in a broader context.



Hope this helps!



Thanks

Rushda