What risk management mistakes did Victor Niederhoffer make to blow up a few times?

Butterball said:
That's the irony of financial markets. A blindly speculating put seller gets blown out of the market twice during major market dislocations in 1998 and 2007. Then swears off selling puts for 10 years because its "too risky". In hindsight that turned out to be the BEST 10 year period period to be selling puts.

In in a similar vein, Niederhoffer said "Trendfollowing funds will be completely gone in 10 years" in 2004 "because they don't offer any edge". Yet here in 2017 they have five times as much in assets under management compared to when Niederhoffer predicted their demise. He is now blown out of the market and retired after arrogance got the best of him.
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Hard to swallow FACT for Vic.
 
piezoe said:
On second though, I want to take this statement back . I think the HFT folks have found a way to legally eliminate most risk. The SEC may be looking into this. And when they finally figure out what's really going on and how and why the HFT traders are able to jump ahead of you in the queue even though your order arrived at the exchange first, they may do something. I doubt they will stop queue jumping however. Probably as far as they will go is to require full disclosure (on page 100 in very small type) how your order is really handled and how queue position is really determined.)
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Have you ever heard of the "Crazy Ivan" reverse-trade? I call it this way, because every time I want to literally but-ph.ck HFT machines, I buy 17.000 Mini S&P at market and in the next step sell 25.000 market. The difficult part in doing so is order management.

Globex Control allows only 3000 lot orders per ticket. Accordingly, you must fire orders like a machine gun into the market.

Rat- tat- tat tat! Kalashnikov-like.

Crazy Ivan and Kalashnikov are my best friends against HFT dominance.

And yes, I trade S&P´s for 25 years+
 
marketsurfer said:
Thanks Debit. Let this be a lesson to readers, lots of anonymous trolls on this site write as if they are authorities since they get no respect in real life--- but when they are called out on their words, the excuses start and they can't produce.
surf
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How's the 1000 point guaranteed short on YM progressing?
Oh, where are you btw?
 
OddTrader said:
Q

Still, Niederhoffer sounded philosophical. “The market was not as liquid as I anticipated,” he said. “The movements in volatility were greater than I had anticipated. We were prepared for many different contingencies, but this kind of one we were not prepared for.”

UQ
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He did not know what he did not know...


PS both Toby Crable and Monroe Trout are from Niederhoffer tree of fund managers
 
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