week11 50% ROI. Linear or Compounded growth?

After 3 months of using myfxbook to track this account which trades om trappedtraders signal, a humble but yet truthful & realistic of 50% ROI was reached. Profits was regularly withdrawn to protect them. This was to mimic how traders who “traded for a living” would function. It also brings to discussion on whether a trader should focus on linear growth or compounded growth.

linear growth

The equity curve should ideally be gradually slanted up. However there will be no exponential growth as profits are mot compounded as they are withdrawn.
week11 50% roi 170316

Compounded growth

A system that aims to compound its growth will have an equity curve that looks like this:

week11 compounded growth

While compounding the account is a very possible & sexy notion which is what attracts many people to leveraged trading in the first place, it is also the reason why many accounts are burnt. A workable profit withdrawal plan is required in order to chart equity growth. Whether am account cam multiply or not depends om the following:

week11 compoumdimg accoumt 170316

While update again when account reaches 75% ROI.


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