% Return on Turnover

[Morbius]

Focus on getting the most out of your trades, worrying about turnover won't make you a better trader

I give up
Firstly I am not worrying....people keep putting words in my mouth. Let me put it this way, if ten successful traders in a room tell you the truth as to what their return on turnover is and everyone said between .10% and .20% that this wouldn't be highly educational in terms of strategy selection

OBVIOUSLY it depends on the strategy I kind of worked that out all by myself like a big boy

[Morbius]

settled markets bit more than 10%
all bets placed added together less than 1%

Sorry Rik.missed your post, thankyou, I was losing hope of hearing anything other than it depends

[smallplayer]

Hi again Mobius. I think I first seen you on the thread I started about 6% ROI. You didn't get an answer on that one and in this one you are trying again. I think these questions are almost impossible for the guys here to answer for all the reasons already given and many more. As you already know, "how long is a piece of string" is the standard answer to all trading questions because of the complexity of trading. When I started out, as a very logically minded person, I found the lack of concise answers to be infuriating but as I started to understand more, I realized that no one could give me the satisfaction I craved. So I started trading and posted a few P & l's and worked things out and asked questions from there. I recommend you do the same, as I feel if you wait until you are armed with all the information you feel you require before starting, then you will never get going. I know you have already traded, so I am not saying you don't trade but I feel you are searching for something extra you will never find. Ignore me if I am way off the mark. GL

[MemphisFlash]

a piece of string is twice the distance from the centre to the edge!!!

[jimibt]

a piece of string is twice the distance from the centre to the edge!!!

you're late this year... normally round about september when you roll that one out

A piece of string is twice the distance from the centre to the end. Everyone knows that.

[Naffman]

a piece of string is twice the distance from the centre to the edge!!!

you're late this year... normally round about september when you roll that one out

A piece of string is twice the distance from the centre to the end. Everyone knows that.

[jimibt]

a piece of string is twice the distance from the centre to the edge!!!

you're late this year... normally round about september when you roll that one out

A piece of string is twice the distance from the centre to the end. Everyone knows that.

the previous time, it was more springtime when the cliche 1st surfaced

a piece of string is twice the distance from the centre to the end?

[Morbius]

Hi again Mobius. I think I first seen you on the thread I started about 6% ROI. You didn't get an answer on that one and in this one you are trying again. I think these questions are almost impossible for the guys here to answer for all the reasons already given and many more. As you already know, "how long is a piece of string" is the standard answer to all trading questions because of the complexity of trading. When I started out, as a very logically minded person, I found the lack of concise answers to be infuriating but as I started to understand more, I realized that no one could give me the satisfaction I craved. So I started trading and posted a few P & l's and worked things out and asked questions from there. I recommend you do the same, as I feel if you wait until you are armed with all the information you feel you require before starting, then you will never get going. I know you have already traded, so I am not saying you don't trade but I feel you are searching for something extra you will never find. Ignore me if I am way off the mark. GL

.


You are way off the mark my friend but thanks for replying ...much appreciated. this forum isn't my only educational source so no worries. Thankfully Wall Street brains think differently

How long is a piece of string???? Show me a picture of the string with something to scale it against and I can tell you

[Euler]

I've never really concerned myself with return on turnover, though I do measure it. On pre-off footy I'll use large stakes but can only ever return small amounts unless the market is spectacular. So I'm more concerned about the risk I'm taking. If there is little risk, I'll happily use much large stakes and accept a lower return.

But the return on turnover varies wildily between markets and strategies. There is no one answer that is correct and everybody will be wildly different. I don't think there is much you can infer from that.

[Derek27]

Learn to swim and then read books about how to improve your technique. Don't start off reading books. Knowing that you're 10% buoyant won't help.

[Morbius]

I've never really concerned myself with return on turnover, though I do measure it. On pre-off footy I'll use large stakes but can only ever return small amounts unless the market is spectacular. So I'm more concerned about the risk I'm taking. If there is little risk, I'll happily use much large stakes and accept a lower return.

But the return on turnover varies wildily between markets and strategies. There is no one answer that is correct and everybody will be wildly different. I don't think there is much you can infer from that.

Thanks Peter....at last a post with detail but there was more to infer from your post than what seems apparent. Your post indicates that you take volatility seriously which I know your philosophy is geared around it. The level of risk is connected to volatility and position sizing so dollar volatility plays a part but these metrics differ in a strategy to strategy basis and even a market to market basis as you well know. However a return on turnover is a derivative of these components and so in the absence of further data, you can only take a piece of the puzzle and back engineer, as for what Derek said about walking before you can run.....well let's just say I walk very well in that regard and sometimes in financial markets one has to do the opposite of what is obvious and work not from the beginning but from further down the line

[Morbius]

That's me done with this thread as clearly the "conversation" didn't go down the expected pathway

[spreadbetting]

Only a matter of time before you start asking for everyone's star signs

[Jukebox]

Only a matter of time before you start asking for everyone's star signs

LOL It depends!

[Kai]

I think OP is just gathering feedback to compare the numbers with his own strategy and approach, not specifically asking in order to copy what others are doing.

I don't measure these things since I already know my trading is woefully inefficient.