No. Are there any other questions?
Do small traders systematically outperform the market?
- Thread starter Lloyd W. Coutee
- Start date
Exactly.
Markets turn direction many times a year. So the portfolio should be able to follow these moves. The bigger the portfolio, the more difficult to turn it in the other direction. This causes extra losses and missed profits.
If you have to make a turn with a 100 feet yacht or a +1000 feet tanker, which one will be turned the fastest in the right direction?
Speechless.
(pushes air back into lungs)....
How do you calculate a performance measure when taking zero risk w/o triggering divide by zero error?
Everybody who went to school till the age of 18 learned this at school. So from your posting we learned something new about your "career".
I start to understand now why TA does not work for you. Even some voodoo would not help you.
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woooooossssshhhh... Went right over your head that one
...and we discover more about you, the self-confessed multi-gaziillion dollar wielding super-trader
No, small traders systematically lose. 
Thank you, I have this miraculous effect on people.
Now let's bombard you with numbers. Here are the AVERAGE HF's returns in the last 5 years:
http://www.barclayhedge.com/research/indices/ghs/Hedge_Fund_Index.html
It is probably impossible to get an average retail return, unless you have access to a brokerage. Nevertheless we can find some numbers :
http://www.investopedia.com/articles/active-trading/053115/average-rate-return-day-traders.asp
Now we have the problem of different timeframes, nevertheless:
"Taiwan Stock Exchange from 1995 through 1999. In a typical six-month period more than 80 percent of day traders lost money, and only 1 percent of them could be called predictably profitable."
So the average HF in the last 5 years (being positive 4 times out of 5) beat the average Taiwan retail traders between 95 to 99. But I said top 10%, not average. Also, once you get your breathing back, you can google average HF performance for 95 to 1999.
The very best HF's performance was for the last 3 years:
" Larry Robbins’ Glenview Offshore Opportunity fund claimed the No. 1 spot, with an impressive three-year annualized gain of 57%."
http://www.barrons.com/articles/barrons-best-100-hedge-funds-2015-list-1431743877
Here is the list of the best:
http://www.barrons.com/articles/best-100-hedge-funds-for-2015-1431743869
I am sure we can find retail traders beating that...
Here is an article comparing traders and investors:
http://www.travismorien.com/FAQ/trading/futradersuccess.htm
And here is a help for you and OP: google.com
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I only respond to postings if they show at least some signs of intelligence. As this is not the case with your last posting I will not comment on that one.
Hey thx for the detailed posting illustrating your point, which is well taken and perhaps, arguably, applicable to a non-risk adjusted comparison. Similarly one could compare the success of the top 0.1 % of outcomes in a casino to the "return" of high-frequency algorithms that profit from front running orders in the marketplace, and no doubt arrive at the same conclusion. I hope you realize the humor in this exercise
I propose another spin/perspective when referring to "return" comparison between so-called "Retail" & so-called "High Frequency" participants. For you see Sir, no discussion of "returns" would be complete w/o factoring in risk, hence the term risk-adjusted returns. No matter what measure of return per unit of risk employed, for a statistically profitable algorithm over a large number of observations, the denominator will be so small as to lead to an effectively infinite result
ops_OSo I guess what I'm saying is not that I disagree with what you are saying but more so that I don't know what to w/it.:eek:
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Seriously, how do you manage to feed yourself?
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