I've done some work extending the research that went into my Retail forex trader success rates - some real data post from a couple weeks ago. Since the broker-reported figures that we see each quarters are based on accounts rather than individuals, I decided to look at the latter in my data set. I'm still working on fully replicating that prior study, but the first part of the results I think are interesting in and of themselves.
This table compares the quarterly figures reported to the CFTC (averaged) with my initial "By Accounts" numbers and the new "By Traders" figures.
There's a pretty obvious drop between the account and trader columns. One is led to conclude that, among other things, profitable traders are more likely to trade multiple accounts (or sub-accounts, as my data set treats them as separate accounts) than unprofitable ones. Obviously, one cannot conclude that trading multiple accounts will make one a more successful trader. Multiple accounts is merely some kind of indicator.
I'd be curious to hear what folks thing about this - why profitable traders are more likely to trade multiple accounts than non-profitable ones.