The fact that I posted more than 1000 postings means that most of ET posters reach the required level. The fact that you cannot meet the absolute minimum required proves that you are on the ET ranking of intelligence close to the bottom too. Looks like a zero with a zero dividing problem. LOL. I will put you on ignore now because intelligent discussions are impossible when the difference in IQ is bigger than 30. And as I don't want to make you look ridiculous ignoring you will prevent you from that too.
Those bigger/huge funds score or aim for like 10%, or 20% return per year. Smaller traders can easily beat that record. given the right strategy, mentality and execution ops_O As for evidence, that can be a little tougher to prove. this is a relatively private world. -- but I would say it's safe to assume that the majority do fail, but the few rare one's who do succeed...they do so fruitfully. (those numbers/ratios kind of applies to every kind of endeavor in life)
Whats with this risk adjusted return? You count your money after the game.Compare it to what you had before the game.Should be a simple calculation.Who the hell really knows what the risk really was? The real risk.Not the fancy calculation. If you are limiting the size relative to your gamboling bankroll that should protect you from catastrophe. The only reason for the stock market exchanges to exist is to take the suckers money.
Small traders systematically get fleeced due to lack of real information and over-confidence based on false or irrelevant information-- but it doesn't have to be this way. peace, surf
In answer to the OP's question: personally I would say the average small trader, especially day traders, systematically loose because even if they manage to be right half the time , commissions, mistakes and emotions will erode any edge they may have. However those that manage to stay in the game long enough to figure it out will outperform the big hedge funds on average I would say, if you are basing it on strictly % returns rather than total sum earned. Its quite possible for a small or 6 figure acct to make a few hundred percent returns a year using leveraged instruments such as futures or options. Also successful small traders can take advantages of small inefficiencies whereas a big fund wouldnt bother wasting their time on such a strategy. And as the other have mentioned already, a small trader can convert to cash in an instant allowing him to move his money around ways a big HF couldn't. Also even the best HF at most have been returning over 100% in a single year , and they're lucky if they do it more than once. A small trader can do several hundred % year in year out ( ive personally witnessed this so dont give me any bullshit). Of course those kinds of people represent a very small minority of the overall group of small traders. Although hard to prove, I would probably say there a steady flow of capital from novice new small traders accounts that end up in successful small traders, hft and big funds accounts.