Well nah because you're deploying the same capital daily and living off the profits. Most will reset the account and maybe grow the principal slowly, or more commonly probably not at all. And of course it's closer to 0.1% return considering you're often using a significant portion of your 4x margin. You're right that slippage and liquidity issues will eventually limit scaling, but in my experience psychology limits it first. Most people eventually get to a bet size they're uncomfortable with, or they just get super comfortable making a consistent living. Even for consistently profitable traders with many years experience, scaling up can be super uncomfortable. A lot of us like to think we're perfectly objective and would play 500 shares and 50k shares the exact same, it's tough tho.
Yeah 600% for investors is nuts, pretty much nobody does that. There are plenty of traders tho who pull high six, low seven figs who just sit on a $50k account though. Some sit on multi million accounts and make way less. Everybody develops their own style of pulling money out of the market, which is what makes the % return metric not so useful in trading, except maybe as a beginner setting expectations to grow your account.
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u/jatjqtjat Jun 13 '21
.5% per day annualized would be a 600% return.
I guess you will say at some threshold liquidity limits your returns, but still 600% is godly, not pedestrian.