Why I have to reach 5%+ profit target in evaluation?

At our firm, we require traders to generate >5% annualized returns because this ensures we outperform the opportunity cost of capital. The 10-year US Treasury yield (~5%) is the risk-free benchmark—if we can’t reliably beat this, we’d be better off passively holding bonds.

Our 5% target reflects:

Risk premium: Active trading carries volatility, leverage, and drawdown risks, demanding higher compensation.
Cost coverage: Returns must exceed operational costs (tech, salaries, etc.) and capital costs (investor expectations).
Sustainability: Consistently beating Treasuries allows compounding growth and resilience in downturns.

Simply put: No alpha? Then we’re just taking unnecessary risk for Treasury-like returns. Your edge must justify the exposure.

All content published and distributed by Sieg Evaluation Limited, which is registered at Room 2005, 20/F, 248 Queen's Road East, Wan Chai, Hong Kong SAR, with company No: 77606483, and its affiliates is to be treated as general information only. None of the information provided by Sieg Evaluation Limited is intended as investment advice, an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any security, company, or fund. Bigbang Technology Co., Ltd is it's subsidiary company located in Taiwan R.O.C, registered at No.189, Section 1, Yongfu Rd, West Central District, Tainan City.

Any information contained on the SiegPath website, social media, or any other third-party site in relation to SiegPath, is used at your own risk and SiegPath assumes no responsibility or liability for any use or misuse of such information. Trading in financial markets is a high-risk activity and it is advised not to risk more than one can afford to lose. Sieg Evaluation Limited does not take into consideration your personal financial situation. If you require financial advice, it is recommended that you speak to a financial adviser or licensed professional.

Sieg Evaluation Limited is not a broker, does not accept deposits for brokers, and does not provide any investment services. Sieg Evaluation Limited does not act as or conduct services as a custodian. Purchases of programs should not be considered deposits. All program fees are used for operating costs including, but not limited to, staff, technology, and other business-related expenses.

Open Pop Up