Recent content by Cavendish

i prefer "Those who can't teach, teach gym"!

in theory yes, although depending on how you structure the fund, fees are generally accrued and paid monthly or quarterly. so if day one investor makes 8% gross return a month for six months they would recieve 8% * 0.8 return net monthly. also need to take off the management fee which if is...

Different share classes.

You would be better served getting a finance and computing degree then working for an investment bank as an intern in the summer, then trying to trade for a bank if you want to run a hedge fund. It is next to impossible for a hedge fund to start without $25million at the very least. Opening...

This is hilarious, and to be honest goes to prove the point I've been trying to make. As i've said previously, risk managed consistent returns are what keep people in trading, whether this is on a 4k account or an institutional account. I keep imagining my investor letter...

I think i menioned the expected shortfall. The Bollinger band at three stdev will be good for the smaller trader, as long as the time period is pecified correctly, and will have much the same type of risk parameter.

although it may not be of a massive relevance to a 4k starting up account, but in my opinion the central premis is relevant, this is how i look at risk budgeting. I also agree with JJ about positive expectance, and it always leads me on to thinking about another perverse piece of logic, which...

to me the principals are the same. good money management skills, understanding of leverage and position that are appropriately sized. for the kid running a four k account, this matters just as much. good execution and shopping around for brokers is important at any account size. trading sensibly...

and indeed to get back on topic, I think that these returns mentioned are of course possible, but I would want anyone new at this difficult business to know that 1 percent a day four out of five trading days is an extremely tough call, I would try and start aiming at three to five percent a...

To correct a couple of points I have made that may have been misinterpreted: 1. institutions certainly do use leverage, but are aware of the level and danger of it. in my opinion 800 percent levered can be okay on bond contracts, with leverage calculated as gross contract value over supporting...

Show me a daytrader with a decent risk adjusted return, with solid performance over a long period, who can attract money from investors to really make a career and business from it, and i'll keep it quiet. if people want to screw around trading 3 contracts, fine, thats whats sad. Daytrading...

I never understand why people trading on these posts don't do same basic research on what is achievable. They make themselves look like fools from the second they say its easy to make 1% a day consistently for years. Do people really think that the 100 phd's sitting researching hedge funds...

Exactly - any GTAA model looking to choose between global equities and global bonds will be long equities all day, against shorts on bonds. expected real rate of return on bonds is so low, with a stable macro environment and good corporate profits that equities are favoured on this expected real...

I believe that the yen and the unwinding of the carry trade is the big driver here. it is tied in to the liquidity crunch angle also, and is what is running the world economy and has been for many years now. the markets will continue to rally or stay high for as long as it is possible to...

I think you are confusing leverage within a fund and the funding level it takes to put on positions supporting a notional. eg if a hedge fund was given $10m by an individual that $10m would be split so that only say half would be used for putting on positions. the otehr half would sit in a...