Growing a small account 400x
If you: 1) have a strategy that’s ~72% win rate with a 1:1 r:r 2) you risk 5% per trade, giving you an expected value of +3% 3) you get 3 setups per day on average under this strategy
Compounding your size daily, maths indicate that you can 400x a small account in a year or so.
Assuming that while scaling to 400x, your size still remains small enough not to cause slippage issues, and you’re 100% disciplined. Why wouldn’t it happen?
Reason I’m asking is that it makes sense from a maths perspective, but I keep seeing people imposing limitations to account growth, citing 1% / month to 20% / month (being on the aggressive end) as limits, while the maths tell a different story.
What are your thoughts on this fellow traders?