Can I keep my Sharpe ratio higher then 4 for the rest of the year?

[macintash]

Quote from gmst:

If I were you and if I was confident about my edges, looking at your results, I would increase the position size at least 6 times. But since still want to give a bit more time before increasing size, there are two possible ways:

1. As you correctly say open another account and I would suggest start with 20k not 30k and increase position size by at least a factor of 3. Higher leverage will allow you faster compounding and smaller account start balance will soon cease to matter. After few months, you can reevaluate.

2. Continue with same account but increase position size by say 40-50%. This has the advantage of lesser number of accounts to manage and thus smoother operation.

If anything I would go with option 1. I don't have a problem with having a number of accounts

 

[gmst]

Quote from macintash:

If anything I would go with option 1. I don't have a problem with having a number of accounts

Good luck man, just a question - are you automated? Because unless you have APIs written for multiple brokers or you can connect to multiple brokers through a single order entry platform, how would you ensure operationally that all your orders go exactly at the time of signal to different brokers. Because even if there is a 10 second delay in order entry for different brokers, in a fast market your fills would be very different.

 

[macintash]

Quote from gmst:

Good luck man, just a question - are you automated? Because unless you have APIs written for multiple brokers or you can connect to multiple brokers through a single order entry platform, how would you ensure operationally that all your orders go exactly at the time of signal to different brokers. Because even if there is a 10 second delay in order entry for different brokers, in a fast market your fills would be very different.

Not automated, but I could have few accounts with 1 broker.
Anyone else here has advice?

 

[ocean5]

What is Sharpe ratio?

 

[macintash]

Quote from ocean5:

What is Sharpe ratio?

Just do a Google search.

 

[ocean5]

Quote from macintash:

Just do a Google search.

I did read Wiki,but didn`t get what mr.Sharpe was trying to present.
Is there any simple explanation on what the ratio is?

 

[macintash]

Quote from ocean5:

I did read Wiki,but didn`t get what mr.Sharpe was trying to present.
Is there any simple explanation on what the ratio is?

Sahrpe is the return above risk free return, devided by STDV, however I'm not an expert in Sharpe. Maybe some readers here can explain better.

 

[ocean5]

Quote from macintash:

Maybe some readers here can explain better.

Haha..doubt it.They just like the word Sharpe.(i wonder, how many readers are reading Wikipedia and trying to get it now )

 

[Soon2Bgreat]

Quote from ocean5:

Haha..doubt it.They just like the word Sharpe.(i wonder, how many readers are reading Wikipedia and trying to get it now )

It's basically just telling you how much return you get for the risk you take - his sharpe of 4 can roughly mean he gets 4 units of return for each unit of risk he takes. Meaning if he's willing to tolerate 10% volatility, he can expect to make 40%.

 

[ocean5]

Quote from Soon2Bgreat:

It's basically just telling you how much return you get for the risk you take - his sharpe of 4 can roughly mean he gets 4 units of return for each unit of risk he takes.

How many samples should be in the presentation?Would 2 trades be enough?