These FX traders pull 100%+ per month, why can't hedge funds do this???

MKTrader · Apr 13, 2011

Those 1-month FX contests are a joke. Anyone can trade with really high leverage and occasionally make 400% in a given month. There's a reason you never see the same people winning those contests month after month, though. Mr. 400% becomes Mr. Margin Call the following month.

There's also a reason you rarely see 6- or 12-month contests. (I think FXStreet may run a longer-term contest, but I'm not sure.)

Joman · Apr 13, 2011

Quote from short&naked:

These FX traders pull 100%+ per month, why can't hedge funds do this????

Leverage is a factor:

- With an account value of 100k a FX Retail trader can scalp 5-10 millions and profit from the intraday market volatility.

- HF manage several millions and can't scalp billions to replicate the same kind of performance: they have to scale in and out in longer time frame or to be much less leveraged.

And investors would run away with the drawdowns showed by Duka's "trader's of the month"

intradaybill · Apr 13, 2011

Quote from short&naked:

http://www.dukascopy.com/swiss/engl...ng_award/monthly-fx-trading-award/winnerJune/

Do these traders have edges that can last?

No. You should not be asking this type of question. They are the outcome of selection bias. In layman terms, luck.

Free Thinker · Apr 13, 2011

Quote from short&naked:

http://www.dukascopy.com/swiss/engl...ng_award/monthly-fx-trading-award/winnerJune/

Do these traders have edges that can last?

http://en.wikipedia.org/wiki/Survivorship_bias

mcgene4xpro · Apr 13, 2011

Quote from YuforaCapital:

Most large hedge funds manage the accounts of endowments and pension plans and only need to make consistent returns.

I agree

Martinghoul · Apr 13, 2011

Quote from intradaybill:
No. You should not be asking this type of question. They are the outcome of selection bias. In layman terms, luck.

+1

ASusilovic · Apr 13, 2011

Quote from nazzdack:

....consistently below that of the S&P-500? They're "good" at doing that.

...and actually being paid 2/20 for it...in some cases 3/50 (SAC Capital). ay, ay, ay...

I think, I have to change this landscape a bit and charge 4/60 for REAL PERFORMANCE

nazzdack · Apr 13, 2011

Quote from ASusilovic:
----being paid 2/20....
----in some cases 3/50....
----charge 4/60....

I thought you had a "5 and 100"?

ASusilovic · Apr 13, 2011

Quote from nazzdack:

I thought you had a "5 and 100"?

I am not yet as "good" as Goldman...

FrankSlaughtery · Apr 14, 2011

Quote from nazzdack:

I thought you had a "5 and 100"?

This fee structure is too low. Remember clients are willing to pay for good performance.