Fi

1. Equitimax
explains
how
money
compounds
Assuming
that
you
can
make
a
steady
return
of
2,
3
or
4
%
a
month
this
document
will
show
you
how
much
this
actually
makes
you
over
a
year,
two
years
and
five
years.
The
Equitimax
managed
trading
service
and
in
particular
the
Blue
Portfolio
creates
a
series
of
individual
trades
(around
100
per
month),
these
are
smallish
trades,
where
the
portfolio
risks
around
0.7%
per
trade
and
this
will
allow
the
portfolio
to
grow
as
the
winning
trades
average
out
at
around
double
the
risk,
so
the
portfolio
can
grow
without
a
serious
potential
for
loss.
The
return
of
2%
to
4%
a
month
are
achievable,
so
what
does
that
all
mean
and
how
would
it
affect
your
account
if
you
were
involved.
Compounding
tables
This
table
shows
the
returns
of
2%
a
month
on
a
5,000,
10,000
and
20,000
pound
account.
The
return
grows
to
just
over
24%
per
year
when
we
add
the
2%
onto
each
month
and
compound
the
results.

2. These
next
tables
show
the
increase
of
the
monthly
return
by
just
1%,
this
series
of
tables
are
looking
at
3%
per
month
and
the
impact
that
has
on
an
account,
you
can
see
the
staggering
effect
it
has
on
the
projected
return.
These
returns
increase
to
38%
per
year
when
compounded
by
3%
each
month.
The
next
series
of
tables
looks
at
an
increase
of
another
1%
per
month,
so
the
total
monthly
return
added
to
each
figure
is
now
projected
up
to
4%
each
month
which
is
very
close
to
1%
per
week.

3.
The
returns
have
grown
up
to
53%
per
year
in
this
projection.
These
are
interesting
studies,
as
it
does
start
to
show
the
impact
of
high
returns.
This
document
is
just
a
reference
document
that
can
highlight
how
a
high
return
will
grow
exponentially
and
deliver
an
opportunity
for
people
to
create
real
returns
Compounding
over
ten
years
The
next
set
of
tables
displays
the
returns
over
ten
years
and
the
difference
between
2,
3
and
4%.
This
first
table
is
a
2%
return
which
compounds
over
24%
in
the
year
and
then
that
is
projected
over
ten
years
and
you
can
see
the
amazing
1065%
return.
This
next
table
shows
3%
compounded
over
twelve
months
which
creates
a
38%
return.

4.
This
table
shows
a
38%
return
over
10
years,
which
compounds
to
a
staggering
3,456%
return.
The
last
table
is
what
occurs
when
the
return
is
around
1%
a
week
or
4%
a
month.
This
over
a
year
creates
a
compounded
53%
return.
Now
look
at
this
over
ten
years.
Compounding
these
kind
of
returns
are
of
course
just
calculation
on
a
spread
sheet
and
no
returns
would
provide
such
a
steady
amount
each
year.
This
is
of
course
just
laid
out
so
you
can
see
why
people
do
chase
these
larger
returns
The
percentage
return
is
over
10,075%,
this
is
amazing
and
is
of
course
is
only
an
exercise
but
it
is
very
interesting.
How
could
you
create
these
types
of
returns
then?
Well
the
simplest
way
is
to
find
a
trading
system
that
will
create
5
trades
a
day,
were
by
the
end
of
the
week
there
are
25
trades
and
each
trade
risks
0.5%
of
the
portfolio,
if
you
make
13
winners
and
12
losers
you
have
made
0.5%
a
week
or
2
%
a
month.
Take
this
one
step
further
and
all
we
have
to
do
then
is
to
trade
10
trades
a
day
which
equals
50
trades
a
week
and
if
we
create
24
losers
and
26
winners,
we
have
increased
the
return
to
1%
a
week
or
4%
a
month.
It
is
not
hard.
It
is
just
a
long
process
to
find
these
systems
and
once
they
have
been
identified
we
automate
them,
using
algorithms
to
manage
the
trades
twenty
four
hours
a
day.
One
of
our
next
articles
will
cover
algorithmic
trading
in
detail.