11 replies to this topic

[arbman]

This is a serious offer. I don't care about the number of trades or the number of correct trades, but only low drawdown and a high annualized return? If so please send me a PM with how much money you are actually managing and however it can be verified, if you are interested. Thanks. Gokhan

[Mtrader]

Is it good enough for one month? What a high requirement!!

[hiker]

Kisa - I know a wealth manager I recommend, and have sent him this thread. He runs a one-person shop. I encouraged him to contact you. He is not a salesman, and is not familiar with this board so a post in this thread of his email address may be all you receive. His first name is Todd.

Edited by hiker, 31 October 2007 - 05:05 PM.

[denleo]

How much money are we talking about here? Denleo

[arbman]

Is it good enough for one month? What a high requirement!!

How much money are we talking about here?

At least for one year, but I was asked for 3 years. The reward is you may get an allocation from one of the largest fund of the world, $10 to $100 mil.

It is a painful process, I've been talking to one of their far reaching tentacles (through a VC) for over 1 year, they reviewed everything from the previous tax returns, every trade, any licenses, the assets listed under your company or used for trading, other qualifications...

I am qualified for more testing and some more investment for 2008, but not all the way for them to open their checkbook, in which case I highly suspect that my methods will scale up to, say $100mil or more, even if they do, I doubt it will achieve the results they are looking with my current setup...

Maybe in 2-3 more years with more automation and history since these people are interested in steady performance and they are still reasonable enough that you would get additional allocation everytime you can prove you know what you are doing year after year...

In a sense, it gives you a sense of cash looking for a home out there, just too much that a small trader like me eventually attracted their attention.

On a separate note, if you are looking to enter in any kind of venture in the future, you should incorporate asap, get a license if you partner, keep the proper records, it just looks better. I had the most trouble in looking serious than an amateur, that I mostly was and perhaps still am anyway...

Hiker, I appreciate it, thanks.

[Jnavin]

No such thing as a 50% annual return and a Sharpe ratio of 4. Your guy needs to find one of many 25% per year traders and then leverage it on his own.

[denleo]

You are not going to find 4 Sharpe and 50% return lasting longer than a couple of years. If that is what they ask for, they don't know what they are talking about. Sharpe of 2 is outstanding if combined with 15+% annual return for more than 3 years and with at least $50 Mil under management. If you do that, the street will throw money at you. Kisa, PM me and maybe I will be able to help you (give you a few names). Denleo

[arbman]

My understanding is they want you to do extremely well with a (very) small fund --like mine , before they can commit the higher amounts. I think this is achievable, even if it is for a few years... I have achieved very low draw down for some select periods --by overhedging , but the return also gets effected naturally. JNavin, I heard you did some outstanding returns on a paper trading website, how was your draw down on those? (PM me if you prefer to keep them private)

Edited by kisacik, 31 October 2007 - 07:03 PM.

[MacRo]

I agree with what others are saying. Your performance benchmark is unrealistic. I know of two RV managers who returned 15% for 10 years with a sharpe of 1.25, and JPM was basically writing them blank checks with client money...

[danzman]

I agree with what others are saying. Your performance benchmark is unrealistic. I know of two RV managers who returned 15% for 10 years with a sharpe of 1.25, and JPM was basically writing them blank checks with client money...

The benchmark is not unrealistic for a small fund with a nice little edge over the very short-term. There are
lots of systems like this. However, they tend to stop working when too much money is thrown at them.

Take a look here:

http://www.collective2.com

Some of the people on there run funds with real track records as well.

From my own experience, one of my systems had a CAGR of 48% over 15 years and sharpe of
4.6. The problem was that it could only be traded with $2 million tops before the edge started
to crumble.

D