So let's assume that a trader has indeed

Millionaire said:
I don't want to jinx my trading results.

Interactive Brokers really clamped down on day trading leverage, I only ever made 200% in a good year with IB. And they got even more tighter the last few years. So I closed my account.

I have moved to AMP. The returns with an AMP account are multiples higher than what i could get from IB. So that will give you an indication of what can be made in a good year.

These kind of big returns are all down to using high leverage + very good market conditions, not my trading skills (entries and exits etc) which are good but not outstanding.

In a year when the market action is not so good I can not make these kinds of returns.
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Interesting. So, you're returns are not noticed by your broker? Why, tho? This information is always exploited. Either someone trades before you or after you based on your actions.

If you leverage down to 1:1'ish, you could easily pull a 20% yearly return, i suppose? You'd be the best fund manager out there basically. Making 7+ figures on just management fees would be standard. (not to mention performance fees)

So, again. Why not?
 
Lucas_Paul said:
Interesting. So, you're returns are not noticed by your broker? Why, tho? This information is always exploited. Either someone trades before you or after you based on your actions.

If you leverage down to 1:1'ish, you could easily pull a 20% yearly return, i suppose? You'd be the best fund manager out there basically. Making 7+ figures on just management fees would be standard. (not to mention performance fees)

So, again. Why not?
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Most retail trader strategies are not scalable.So their successful strategies can not be used to run a fund.
On the other hand, if you have a scalable and high profit strategy, you don't need a fund.
 
wmwmw said:
Most retail trader strategies are not scalable.So their successful strategies can not be used to run a fund.
On the other hand, if you have a scalable and high profit strategy, you don't need a fund.
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I'm not talking about most, i'm talking about this specific example. Most traders can't trade anyway.

If you make 200% with 20x lev, means you're making 10% with no lev. If you're trading SP500 index, you don't have a scalability issue with a 100M account.

wmwmw said:
On the other hand, if you have a scalable and high profit strategy, you don't need a fund.
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I guess we're talking about different sizes here. Obviously a 1M Fund isn't of interest to a successful trader. But if you run a 100M fund with 2/20 fee structure, it basically means you have 20M account that you trade for yourself. Now, do you have that kind of money yourself?Does anyone here actually has an account above 1M (which equates to 5M fund management which is not the size i'm referring to anyway)?
 
Lucas_Paul said:
I'm not talking about most, i'm talking about this specific example. Most traders can't trade anyway.

If you make 200% with 20x lev, means you're making 10% with no lev. If you're trading SP500 index, you don't have a scalability issue with a 100M account.



I guess we're talking about different sizes here. Obviously a 1M Fund isn't of interest to a successful trader. But if you run a 100M fund with 2/20 fee structure, it basically means you have 20M account that you trade for yourself. Now, do you have that kind of money yourself?Does anyone here actually has an account above 1M (which equates to 5M fund management which is not the size i'm referring to anyway)?
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If I have a strategy making 100 times per year, do I still need to work for a fund?
If I make 500% a year, I may just pick one wealth person and trade his money.

If you think 100 times a year is unrealistic, well, OP is trading a prop firm challenge that needs him to profit 200% in 2 months.
 
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wmwmw said:
If I have a strategy making 100 times per year, do I still need to work for a fund?
If I make 500% a year, I may just pick one wealth person and trade his money.
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That's nice and all, but...you don't. Market has an "upside ceiling" on alpha. The fact that someone thinks it's possible tells a lot about that someone. Sure, jackpots happen every day everywhere...but be consistent...especially when...information leaks...

wmwmw said:
If you think 100 times a year is unrealistic, well, OP is trading a challenge that needs him to profit 200% in 2 months.
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Where are you getting that 200% in 2 months? Isn't he doing that E2T challenge which has like a 6% goal? (That new 25k account has a 7% goal, so seems like they raised it)
 

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His challenge has a drawdown of $4500 and profit target of $9000.
Don't be fooled by nominal amount $150000, that amount is meaningless. You lose 4500, your account blows up.

Where you get the idea of "upside ceiling" on alpha? That is illogic.
 
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wmwmw said:
His challenge has a drawdown of $4500 and profit target of $9000.
Don't be fooled by nominal amount $150000, that is meaningless. You lose 4500, your account blows up.
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Is that how you all calculate returns? Do you even know what Sharpe is?


wmwmw said:
Where you get the idea of "upside ceiling" on alpha? That is illogic and untrue.
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I have a tendency of talking nonsense, i know. So, i won't get deeper into that...
But, just for fun - why don't you show me your trading results :)
 
Lucas_Paul said:
Is that how you all calculate returns? Do you even know what Sharpe is?




I have a tendency of talking nonsense, i know. So, i won't get deeper into that...
But, just for fun - why don't you show me your trading results :)
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Why I need to show you? Tell me a reason.
If you pay me some money, I will show you.
 
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