Allocation, monthly return, profit split and variance — an honest calculation instead of a screenshot.
Key takeaways
- Income equals allocation times monthly return times your split, minus variance.
- Consistent 2–4% monthly returns are a strong professional outcome.
- Plan around a losing month, because they are certain to occur.
The arithmetic is simple. A ₹20,00,000 allocation returning 3% in a month is ₹60,000 of profit; at an 80% split, ₹48,000 to you. That is the calculation — not the screenshots of a single exceptional week.
Is 3% realistic? For a disciplined trader with a tested edge, a 2–4% average month is a strong professional result. Anyone promising 20% monthly consistently is describing variance, not a career.
The complication is distribution. Returns do not arrive as equal monthly instalments; a good year might be four strong months, five modest ones and three flat or negative. Budgeting on the average month is how traders end up forcing trades in a slow one.
Two practical rules follow. Build a personal cash buffer covering several months of expenses before treating trading as primary income, and scale allocation rather than risk when you want to earn more. Increasing risk per trade to hit an income target is the most reliable way to lose the account that provides it.
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