They can on a risk adjusted basis. Don't focus on absolute return.
The S&P 500 has topped at 2430 on 6/1/17
- Thread starter volente_00
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They can on a risk adjusted basis. Don't focus on absolute return.
Not really in last 3 years. Morningstar data says in last 3 year SR was 0.78. Based on last 3 year HFRI return data, i bet they are barely above zero
Forget stocks, how about bonds. No 2-20 here. It only costs less than 10 basis points
https://pensionpartners.com/the-hedge-fund-myth/
https://pensionpartners.com/the-hedge-fund-myth/
I always have difficulty understanding risk adjusted returns, especially in long term results:
If I look at 1 yr or shorter data, sometimes RUT beats SPX sometimes SPX beats RUT, but over a 30 year period, (a running window analysis), RUT almost always beat SPX.
Can you comment on risk adjusted return over time and what can we retail amateurs do?
Thanks.
You started with the big swinging dick, and still haven't answered my question about why hedge indexes and if you do how do you make money?
You brought up hedging when this thread is about directional prediction. Your whole approach is offtopic...
Traders hedge WITH indices and ETFs all the time. They're an ideal hedge vehicle and that fact accounts for a great deal of their ongoing rolled volume in the case of index futures. If a trader wants to isolate a specific idea about the relative valuation of individual names or smaller subsets of broader markets or specific market sectors then the broad spectrum of various indices and ETFs are used as foils - correlated contrasting agents if you will. This isn't new - it's been going on for years.
If you don't know much about a trading strategy, then maybe some research on your own might be warranted prior to public condemnation.
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I think you got it this time.
All of positions are predefined on risk. I take the overnight margin and add my stop amount into the factor before putting a trade on. I push the hell out of my daytrade margin but will lighten in order to avoid a margin call by session close and then put it on again as soon as globex reopens since overnight margin is 10x daytrade. I had the top predefined as 2438-42 so I scaled into this one.
What was Paul Tudor Jones?