Investing a good investor has a 55% win rate pretty much at best, which is why your only making 18% per year, the longer the trades the less control you have in short. A good daytrader can be 90% win rate and make 2% many times per day, until there contract size is maxed out. Ofcourse this means a bad daytrader can lose 90% of the time, thats the flip side. Where as a bad investor can worst loss rate 55% End of the day works put the same, just investor loses and gains slower that is all.
Teaching him isn't the point, he's old school and rich/fake rich and against margin, its the others, if you work at daytrading long and hard enough you can ( many will fail ) turn a small sub 1k even account into a good life style. That's my mission and major progress sadly manic week
when a hedge fund says how much they earned.. didn't they already subtract salaries and costs of place of business etc..? they are talking return to investor. but when the retail trader talks return, they usually don't have the overhead. And.. a retail trader can mostly get in and out pretty much without much splash. The large fund can't always. The return of a hedge fund vs the retail return.. apples to oranges
Best advice here: listen to GAT, everything he says makes sense. And he's a risk taker. His strategies run at 25% vol per annum (if I'm not mistaken). That's pretty agressive: DD scales linearly with vol, and for most (surviving!) CTAs that multiplier is 1.5. So I think he's looking at a maxDD in the range of 35 to 40%. Pretty significant. I very much respect his patience in this thread...
You guys that are making over 20% a year daytrading need to sign up with Fundseeder. Jack Schwager would love to interview you for his next book...