Retail traders can outperform hedge funds just not at scale

[southall]

S&P emini can handle 1000 lot like a champ during 90% of rth so what's the excuse now on trading 100 mil notational ?

Lack of diversification. Only a few markets are as deep as the S&P.

This is fine if all you want to do is day trade ES or say ZN. But these are the hardest and most competitive markets around.

With a smaller account you can day trade a mix of almost any markets you please.

 

[southall]

I think Warren Buffet would agree with the thread title

He once said he could make much higher returns if all he had was 1million USD under management.

 

[Robert Morse]

What is your definition?

It is not always the size of the account. Here are a few examples.

• Any money managed by a registered person (RIA/CTA) is a institutional relationship, even though the account is a retail account owned by an investor.
• Any Hedge Fund or CPO of any size open to investors is an institutional relationship and an institutional account.
• Any PMA set up with the intent to build a track record in order to manage money, is an institutional relationship.
• Any PMA owned and traded by a full time trader with an institutional past. Sometimes they also hire traders.

Even though I handle more "retail" accounts than what I consider "institutional" accounts, these types of accounts described above are my target market as VP of institutional sales. For the accounts above, we provide added services like Nirvana Reporting to help them run their business.

 

[traider]

The primary reason money managers say day trading is impossible, sans the obvious moral hazard, is due to economies of scale against daily floats. Retail traders have an enormous advantage managing accounts up to 5-10 million in trading relative to the viable churn of equities and their respective daily volume. If your managing 100 million, at scale, you have to hold longer and are more susceptible to market conditions and overall index performance. With less money you can invariably move within moving averages, price action and volatility more easily.

I don't need to outperform anybody. Please let me know what are good strategies to make a decent return. I'm more than happy with that.

 

[Robert Morse]

Please let me know what are good strategies to make a decent return

Unfortunately, that is your role and the hardest part of trading. That said, I agree. Trading or investing is not a competition.

 

[Bill.C.]

I fear I cannot answer this question without indicting myself with a priapism of snobbery and detachment from the gentry. Will you gentlemen afford me latitude and character protections should I explain?

This is the snobbiest comment Ive ever seen yet it implies snobbery will be incoming?

 

[srinir]

we provide added services like Nirvana Reporting to help them run their business.

What is Nirvana report? I didn't see that in offerings in your website.

I guess all traders aim to achieve "Nirvana"

 

[newwurldmn]

This is the snobbiest comment Ive ever seen yet it implies snobbery will be incoming?

He followed up with an incoherent post.

 

[zdreg]

what would you classify me as then? who has 20 usd AUM?

someone who should be charged a hefty professional fee for posting on ET.

 

[benben245]

He followed up with an incoherent post.

I was high on laudanum, my opium suppository of choice. My apologies