How linear is arbitrage growth?

princebet

Jr. Member
Firstly, apologises for starting a new thread every half minute, and thanks to the more experienced users who continually offer advice. It’s invaluable. Really.

To my point…

The number that continually crops up on most material I read is 10%. That’s a 10% R.O.I you can expect month on month from your starting capital. More specific sources say 6-12%.

As an example…

If I start with 12k capital, if I stake 5% of that capital on 3 daily arbs at an average of 2.22%, then I make the target suggested 10% R.O.I.

If after 24 months of continuously reinvesting my 10% profit, my capital will be £118,196.79. (Sceptical emoji face)
I’m going ahead with my arbitrage adventure regardless, and I’m expecting it to be lucrative, just not as lucrative as my ‘ideal’ spread sheet is telling me it will be.

So, while there are some obvious factors and variables that will effect this growth, my questions are…

How accurate have experienced traders found these numbers? How linear is the growth? What are the major factors preventing this growth from being linear month on month?

Basically - Is my spreadsheet talking sh*t, and if so, why?
 

vbet

Member
Max bet in unrestricted accounts will stop the growth, betting limits, lack of unlimited accounts... As your bankroll grows you will find it more difficult to invest it 100%. How quickly you'll reach that will depend on how "good" you've become at it. Only way to find out is to try and see where your personal limit lies, no point in theorizing what your potential profits can be and dream about it if you haven't placed any bets yet.
 
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