such easy compounding concept is NOT valid in trading. There is psychological limit of how much lots you can handle, also cost of slippage increases with higher volume.
I am getting more than 220% yearly return in average from day trading since last 6-7 years (trading more than 10 years).
But, I such fast compounding is not possible. I don't think it even in my dreams.
Traders hit their psychological limit of trading with maximum capital, then after some time they overcome it. Capital increasing in trading is slow process. I have increased my capital slowly in last 10 years I know traders psychology.
How much pressure we can handle actually increases with time and experience. Such excel sheet compounding never work in real life. But, yes 200-300% return possible from trading consistently over long years if we can understand our limit - the maximum capital we can handle comfortably.
You have overlooked above statement.
The easiest process of burning out the whole capital is trying to compound capital without knowing the psycholigical limit of handling maximum capital at a time. You always need to shift some profit for backup in a way that, even if 100% capital is lost you can fill it. If u know u can fill it, u have greatest psychological advantage of tension free trading. Then you can go for higher risk and higher return trades and you can wait for long to run on profit patiently. Smart money management never favour such compounding bcoz u always need to shift part of profit for backup caiptal, as soon as you increase the capital for trading. Remember this always. This is the way a pro trader cut the risk.
There is no risk in my trading, you know why? Bcoz even if I lost 100% capital, I can fill it next day. I am confident I can get back it soon. When we are trading, we must remember we are using leverage so actual turnover is much much higher. We can't compound it so easily bcoz we need to save backup. All big pro traders are using only a part of capital for trading, they can refill it multiple times if they required(although they know they don't require in real life). There is min risk due to their money management.