CL Redux

Quote from NoDoji:


If by "lately" you mean "today", it was tricky price action
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As usual, im against the herd.
I had one of my better days today. nearly 100ticks profit. But then when you lot have been killing it everyday last week, I had very mixed results - mainly smallish losing days.

I find it interesting - when most find it a hard day, I find it easy, and visa versa.

Maybe its because most people are looking for trends to jump on and so do better on strong trending days, wheras maybe I tend to look for reversals and naturally snatch profits which generally makes choppy days lovely for me?!

I dont know....
 
Quote from Eddiemorra:

As usual, im against the herd.
I had one of my better days today. nearly 100ticks profit. But then when you lot have been killing it everyday last week, I had very mixed results - mainly smallish losing days.

I find it interesting - when most find it a hard day, I find it easy, and visa versa.

Maybe its because most people are looking for trends to jump on and so do better on strong trending days, wheras maybe I tend to look for reversals and naturally snatch profits which generally makes choppy days lovely for me?!

I dont know....
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you use a big stop loss ?
 
Quote from Gabfly1:

Has CL gotten to be a bit more difficult to trade lately?
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I think the bastard also bot are in the system today, we have almost all the fakes breakout in almost all the TL or MA, with the overshot around 0.30-0.40, which mean those algo STOP hunter are doing a good job today.
 
http://www.marketwatch.com/story/mo...new-source-of-capital-2011-05-23?pagenumber=1

HEDGE FUNDS First-loss capital

More hedge funds lured to new source of capital
Topwater hits ‘sweet spot’ as more managers compete to raise assets

“We are currently in a sweet spot, as we are seeing a lot more talent without sufficient capital that we have been able to partner with in a mutually beneficial way,” said Bryan Borgia, who founded South Norwalk, Conn.-based Topwater with Travis Taylor.


Borgia wouldn’t disclose how many hedge funds Topwater has backed, but he said the firm expects to double the number of managers on its platform in the next nine months.

<b>Managers’ money</b>

Hedge funds typically charge 2% management fees and they get about 20% of any profit each year. First-loss capital changes this in a big way.

Allocators like Topwater usually invest about $45 million as long as hedge fund managers agree to put up 10% of that from their own wallet — in this example $5 million.

<b>Topwater pays a performance fee on the $45 million that’s more than double the industry standard of 20%. This fee is paid monthly, if the manager makes a profit in the period.

However, if the manager loses money during any month, that money comes out of their own capital and Topwater’s $45 million remains intact. In this way, the hedge fund managers put themselves in the “first-loss” position, in return for the capital
</b>
<b>Best-idea funds</b>

However, the benefits seem to be outweighing the risks for many managers. That’s especially true if they believe strongly in their investment strategy and are willing to put more of their own money on the line to support it.

Another benefit of Topwater’s approach is that managers get a chance to recoup monthly losses. So if a fund is down $100,000 in one month, that comes out of the manager’s own capital. But if the manager makes $100,000 the following month, all that money goes towards topping his or her capital back up.

First-loss capital isn’t just for new hedge funds either. Topwater also provides this type of funding for existing managers<b> who want to start a best-ideas fund or even set up a single-themed trade that can only support a limited amount of capital.</b>
 
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