Hi, Larry, I'm currently managing two products at Robbins and plan to have returns similar to those of your 1987 contest account, 50% drawdown, and the two programs I have at worldcupadvisor.com are called Quant Master, and we haven't named the other one that's still in incubation but doing well. Eventually we want a third double corn product.
This entire thread appears to be the trajectory I'll experience.
Just today I'd looked at the effects of scaling a 2-1-2 NQ 2 ZC combo at $25,000 with a 2 NQ 2 ZC scale at $12,000 and $15,000.
As I scale, the amounts approach astronomically high returns much similar to Mr. Williams, even the drawdown.
Assuming it gets to $2 million by year end that would be substantially similar to what happened, and while Larry may not have planned for it even the amount of the drawdowns are similar in magnitude but, Larry, really, you might have been trading a mix of strategy and gut instinct but I'm sure you knew how big the drawdowns might be.
When it comes to the fund you started with them I, too, have similar intentions, but drawdowns aren't light, and multi-thousand percent returns under 2 years is worth risking half of your money everyday. Until I'm older, though, I still plan to scale these combinations of trading algorithms to max lot size.
Michelle Williams needs to either keep following her dad or take a closer look at what's going on at worldcupadvisor.com.
Their technology is great and easy to use. I've learned not to overleverage myself now, (just as you did), and ever since I let them trade my algo's performance has been spectacular, between 7% weekly and 38% every 10 trading days, which I hope continues.
I think that'd be around 4% daily, and I can't imagine correcting that value to something more reasonable.
I see compensation as 2-3% per month in sub fees, and when the disclosure documents done add on 2% APR monthly fees, 20% performance based fees with semi-annual clawback provisions.
I think had the technology been better both managed accounts, a fund, and subscription based revenue to each model all come with super high returns and 30-50% risk everyday.
Wouldn't want to see these mistakes come up again, but after seeing the model's performance this week it won't be possible to have 1 account do that much in profit, but as he had been scaling and increasing size in order to win that contest, I don't think you had done as much risk management as you should have done, but it was dam hard back then just to do one backtest, let alone hundreds that'd go into r&d before implementation.
Glad to see you're still trading.
The scales up create uncertainty, and 87 must have been a very scary time in the futures market. When I'm done with these strategies and went as far as they can go, I'll take a vacation, and just let them run.
For now I'm actually managing the trading system, risk management and letting Robbins execute, so that has taken a huge weight off while focusing on other ways to produce value from within the most optimal backtests, portfolio optimizations, and sharpe ratio optimizations.
