My Sharpe is < 1 yet I am doing just fine in the last decade and a half with a CAGR > CAGR of QQQ. With a Sharpe of > 3, you can easily be a billionaire by now? Are you? Just curious.
Doing so well, he needs funded prop firms, and calling it his "hedge funds". https://www.elitetrader.com/et/thre...le-prop-challenges.378170/page-3#post-5926848
I meant to ask you and Noah, after observing him all these years, are you able to figure out how and what method he trades, i.e., does he use indicators, etc.? Thanks for your time sir.
No there is no such strategy holding on for more than just a few months. I was lucky while I traded for a real hedge fund remotely apart from my other prop firm activities. There is no such fine strategy at all. Sharpe 1 strats there are some and widely known too. But do not expect to make more than 20% per year with 20% max. Drawdown too. And he, Tom, is just trading some pattern stuff. ORB is one of his US markets strat. The other on EU markets is kind of mean reverting. Just watch his latest youtube live videos and you know all your answers to your questions.
It is OK and more power to him if he can get funding from a pro firm. With a Sharpe of >3, he should be able to quickly use his profits to start trading on his own. Not too many are able to trade their own funds, especially those just starting out.
You think anyone with experience trading for hedge fund or has strats of sharpe >3 for even few months need retail prop firms like FTMO? So like you said, that person is either a noob or blew up so much.
I do not trade with prop firms anymore and I also left the hedge fund. I just trade my own personal account. Again there are no high sharpe strategies going forward or when traded live. You can be lucky for a few months but usually this is just an eye wash and data snooping bias. That is why I concentrate on discretionary trading. And yes Money Management itself is an advantage. Trailing your SL and scaling in itself produces an edge because you minimize risks while you can maximize profits when you are just correct on market direction. Also I think the prop firm era is over. It can be cheated meaning it can be arbitraged. For profitable traders on personal broker accounts the advantage on such prop firms are gone. There is no big money to be made here from. These days are over. Most prop firms are just scam artists, when it comes to payout day. They will refuse to pay you, your hard earned trading profits with ridiculous reasons. I made same experience here. That is why I left.
You have narrowed view, I was just making some extra money kind of risk free for me as I had profitable strategy. Also the hedge fund was small and they did not allow me much assets to trade with. So I boosted my monthly trading income with additional prop firms. That is all. You are too negative. I hope your trading is fine actually ?.
Just look at the link here in this thread, there is all you need. And yes it is only backtest here. You cannot be sure it will go forward as backtested, as always. You can also have 2 years no profits with this kind of strategy. Just as reminder.