Quote from atticus:
Gains were all from one index short.
Hmm, I bet you'll say that when I hit a profit target and make 8% on 1, 2, or 5.
I saw you guys joking about the trader that made $5,800 on index futures, and "will you join my fund?" kind of stuff.
I guess as soon as the idea that "I need to reach $15 billion in 2 years", became, "but I could be all right with just my money hitting $50 million 30 months later", then I started to wonder why I'm even trying to be a representative at all?
When the APR reads xx,xxx% and DD<50% and the net profit percentage in less than 3 years reads xxx,xxx,xxx%, who would do anything but trade that? Really?
I remember a couple good NQ's this year, but when I wasn't undercapitalized, I'd look at 75 NQ and think 100, 150, 200? Ah, 250! No, I'd sell before then, wouldn't I?
Maybe there was a couple index trades that could account for half, but then there's the other half of the pnl, and that could be attributed to a dual corn limit up futures trade for $4200, and a rockin RBOB trading day worth about $3500 on accounts worth $25k.
Ignoring the index trade I recall going up to 5 NQ's in the base unit, the other trades have actually been more profitable percentage wise, but because that was a decent trade percentage since there wasn't as much risk it didn't have as much of an impact on the bottom line apparently as 5 that get a 1 year track record at 10% monthly average as risk adjusted isn't good when the sharpe exceeds 1.5.
I guess I'm saying I don't see 1 index futures trade in the 900 or so round turns I've had, and, incidentally, that program is the entirety of my personal futures trading. Doing a little extra pairs trading with another account about half the size where I just trade my pairs system, which can make greater than 7.75% on the index in less than 20 trading days.
Here's the issue. The Pairs Trading Strategies I have stand on their own, but after applying risk management and synching the trade size with Price Physics Trend Following, the effect is $5,800/$25,000 which makes the percentage seem large but there is another even crazier aspect to this. I have statistical arbitrage models and when you combine stat arb, price physics, and risk management without the pairs trading, your average monthly return per unit is around $6,500, or 26%. Again, that's just 3 of the models and when you add the pairs trading models, 40-80% months regularly appear to be possible.
On the risk side, the warnings all say you can lose all your money, and even though I don't believe you will, there are other manipulations you can do with your wealth that can either make you millions or make you billions...
Let's see, $5,800 on the base unit is 23.2%. Yes, 1 trade contributed to a fifth of the profit. Hmm, must feel good to be right for 2 consecutive months and make a payday on $25k.