Milking late-night slow movement (ZB)

[xelite777]

5.3% on what? Not on margin or the value of the contract, the cost just represented 5.3% of his profits per trade not that he has to make 5% on the account to break even.

Yes, but then you are assuming that his average profit per trade will be the same in the long run.

In any case and in general, if the commissions/spread/slippage represent 5% of your gross profit, you need to make at least 5% just to break even, on each trade.

And like I said before, the overwhelming majority of hedge funds cannot even make 2% a month on average.

 

[smallStops]

...

And like I said before, the overwhelming majority of hedge funds cannot even make 2% a month on average.

on what capital ?
2% represents how much in $ for the average hedge fund?
So that we know if it is worth dusting off a CV.

 

[xelite777]

on what capital ?
2% represents how much in $ for the average hedge fund?
So that we know if it is worth dusting off a CV.

Hi SmallStops,

If you deposit let's say a hundred grand in your trading account on January 1 and on January 31st you now have $105.000 you just made 5%.

And again, for the last time, make just 2% a month consistently and Warren Buffet will be looking for you

 

[smallStops]

:eek:

I think I'll continue working on my psychology/spirituality as it related to trading.

 

[pleckerchris]

Hi SmallStops,

If you deposit let's say a hundred grand in your trading account on January 1 and on January 31st you now have $105.500 you just made 5%.

And again, for the last time, make just 2% a month consistently and Warren Buffer will be looking for you

I don't really think it's about % earned more then money made. Making 2% a month on $100K isn't that hard. That's only $2,000. The big traders/investors manage $10s of millions. So 2% would be a huge deal. But what do I know.

 

[smallStops]

I don't really think it's about % earned more then money made. Making 2% a month on $100K isn't that hard. That's only $2,000. The big traders/investors manage $10s of millions. So 2% would be a huge deal. But what do I know.

10 million : 2% ==> 200 000$ / month.
Or 100 000pounds/month roughly.
So it is about being able to trade 1 000pounds/move ( pip/tick...)

 

[xelite777]

Making 2% a month on $100K isn't that hard.

Really?

Then call Soros or Buffet or Bill Gates, they will beg you to manage their billions right away!

By the way, 2% a month equals more than 27% return on investment at the end of the year, compounded.

In other words, 3 times the average yearly return of the S&P 500!!

So you guys are either drunk (and I can understand that, it's the weekend after all...) or you are just fooling around

 

[smallStops]

Now I am starting to understand why a retail trader who was doing 3 000 pounds a pip on the dax tried to keep quiet.
Now we know what the numbers are, it makes sense.

 

[pleckerchris]

Really?

Then call Soros or Buffet or Bill Gates, they will beg you to manage their billions right away!

By the way, 2% a month equals more than 27% return on investment at the end of the year, compounded... or 3 times the average return of the S&P 500!!

So you guys are either drunk (and I can understand that, it's the weekend after all...) or you are just fooling around

Managing 2% monthly return on $100K vs $10M is a totally different ball game, both psychologically and in risk.

 

[pleckerchris]

Take Barclay Hedge for example. Looking at their January monthly, top CTAs managing <$10M earned 8.93-38.76% while CTAs managing >$10M earned 6.74-14.33%.