CPO startup


I am very familiar with CPO's (been there done that) and I would say you need to shoot for 2% to 3% per month starting out with never more than a 1% drawdown for any given month (and no consecutive losing months).


Assuming the average monthly return is (2+3)/2=2.5%, that is about 35% per year annual return.

Does any one know any CTA/CPO/HF manager who has 35% annually return and only have about 1% drop down in past said 5 years? I would like to know that. Thanks.
 

Keep records so that your results are audit-able.


That is a good idea.

How do you keep records?

1. Print out monthly statements (hard copy)?
2. Save electronic copies?
3. How about daily statement? Do you need daily statement as well for audit?
 
Quote from 88888888:


Keep records so that your results are audit-able.


That is a good idea.

How do you keep records?

1. Print out monthly statements (hard copy)?
2. Save electronic copies?
3. How about daily statement? Do you need daily statement as well for audit?
More...

Monthly statements should be a summary of the month's transactions. Keep all of those and account for all monies going in and out.

At some point somebody will say, "show me some proof"... and you'll need to defend your performance claims.
 
Ok, assuming that I want to invest with a CTA. The CTA shows me his disclosure document (DD). In DD, there is a performance table.

1. Can I ask him the audit statement for CTA performance table?

2. I understand that If that is a CPO, yes, CPO performance table must be audited. But how about CTA?

3. If the CTA performance table is not normally audited, how do you trust it?

4. To look through monthly statement may not be pratice!
 

Backtesting over last 25yrs while adjusting leverage I get returns of 26.3% max dd of 13.5


What is your definition of "max dd"?

Per trade?
Peak to valley per end of month?
Peak to valley per end of day?
Peak to valley per intraday?
 
Quote from 88888888:


I am very familiar with CPO's (been there done that) and I would say you need to shoot for 2% to 3% per month starting out with never more than a 1% drawdown for any given month (and no consecutive losing months).


Assuming the average monthly return is (2+3)/2=2.5%, that is about 35% per year annual return.

Does any one know any CTA/CPO/HF manager who has 35% annually return and only have about 1% drop down in past said 5 years? I would like to know that. Thanks.
More...

35%/yr w/ a 1% DD? That's asking alot
 

35%/yr w/ a 1% DD? That's asking alot


I agree with you completely. That is the reason I asked if any know any CTA/CPO/HF manager who can deliver this!

Any one?
 
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