New personal objective : Double capital every year!

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When I kicked-off OPNewsletter few months back I started it with the objective of 5-7% monthly returns on “invested portfolio” (it delivered consistently >+20%) and also shared portfolio allocation guidelines.

After reviewing my past 12months performance, I wanted to stretch my target. Though I have already secured over 100% returns in less than 6months time on overall capital, but I don’t think doubling in every six month is a realistic and achievable target as markets had been on a roll in past six months as well. But doubling every year is quite inspirational and motivating, for me.  

I am now stretching myself for “doubling capital” every year!! On the surface this seems quite an ambitious goal I am getting into, but when I nail it to monthly level it is 6% per month compounded that can deliver this goal. Though on absolute number basis, it is still similar to OPN’s target but now I am targeting on “portfolio capital” not “invested capital”. That means there will be some months of positive gains and some with losses, but overall I should generate enough returns to compensate for 6% compounded. I shall find ways on how to post audited results as soon as capital is doubled.

This goal will be harder when portfolio is large. I shall therefore also be paper-trading for a large capital base and fine tune strategies to achieve similar objective for that.

I shall share more later how I plan to achieve this. Till then, enjoy the ride,

Have fun, profitable trading, OP


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5 responses to “New personal objective : Double capital every year!”

  1. Chiu Avatar
    Chiu

    Double the investment in one year might be viable if we are consistent in a
    predictable market place. With the current volative market, it might be slightly more
    difficult for this short period of time.

    But with your proven record in applying different strategies under different condition,
    I feel that you could achieve that. That is quite amazing with many professional fund managers
    not achieving that.

  2. Ginko Avatar
    Ginko

    Op, how do u determine ur ranges for the RUT IC, do you use technical analysis?
    Likewise for Calendars & Diagonals?

    Good luck on ur next challenge.

  3. OptionPundit Avatar

    Thanks for the kind comment Chiu.

    Ginko, thanks for the comment. I use a combination of technical as well as statistical analysis for RUT Iron condor, double diagonal as well as calendars.

  4. Kim Avatar
    Kim

    OP, I just came across this old post. Is doubling the capital still your goal and are you achieving it?

  5. Bill Avatar
    Bill

    Have been trading just puts and calls, options. Have never traded doing what doing. Can one learn this. You don’t have any spots open anyway I assume. Thanks

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