it matters because they want a smooth equity curve. managed money does not like fade-add-add-add=massive-loss-puke traders who consistently fight market direction trying to pick highs and lows. Their equity cure history resembles a world-class coaster ride... not conducive to managed funds.
+1 Spot on Kid. I used the obese example. I also used the "getting a job at Goldman" example. What? Goldman wants me to have an MBA from a top 10 school? That's BS. I'm suing. Or I'll trick Goldman into thinking I have an MBA when in fact I'm just a high school graduate. Or, Goldman knows they will never hire me, they will just make billions without me. I think people in life generally have a victim mentality. That's their default position. And only through hard work and persistence do they break that.
Huh? how do you explain the 40% plus drawdowns of the huge trend funds like Dunn ? I think you are talking about institutional money, not managed money. surf
Yes, in the real world, that's the way it works. Awhile ago, we placed money with 5 hedge funds. 2 lost a little bit, 1 made a teeny tiny amount, and 1 had a hefty lost but one made 75% on the year. Think the investors were happy? It was their best year ever-- despite the losses--- they could care less due to the one big win in 1 out 5 allocations. surf
The entire post was good. But this portion above is gold. Look in the mirror people, the enemy is looking back at you.
you are diversifying over several instrument there. If you are backing a handful of futures traders you do not want to see large drawdowns ever. Backing traders is a risky business and can easily blow up in your face. If you cant see why a backer wants to back a smooth equity curve over someone who continually swings for the fence then it's probably time to move on. Of course none of this matters anyway, you do realise that. All that matters is that you make money and if you cant all that matters is getting into an 'environment' where you can make money. everything else is a sideshow, a distraction from the job in hand. I could tell you what i had for lunch and it would be equally as useful. good luck to you.
when i was a kid they had a contraption guaranteed to killl flies, it was $2,it was 2 pieces of wood, instructions, place 1st board on table, place fly on board,place 2nd board atop first...it worked, so it mustn't be a scam, that is the point here ,we have to split hairs to determine whether tst is a scam... if it was legit,there wouldn't be 3 threads and several arguments,.....in the above example ,because it works,it's technically not a scam......if it looks like ,smells like ,tastes like,it must be,,,,?
don't tell me it's gold that will just make my head swell bigger. lol the sooner people understand that trading is just a game where some people win and some people lose the better. For anyone struggling all you have to do is work out why most people lose, then don't do that. If you dont do those things you will greatly increase your odds. everyone in the trading business is out for your dollar and expecting anything else is foolhardy. everyone. demand value in everything you do or walk away. If I had a chunk of change and wanted to learn to trade I would certainly try the combine simulator, 90% better than most propositions out there imo. what's great about this business is the amount of dumb money in the markets, it's frikkin great. all these people trading with no plan , no discipline, when they mess up they blame someone else. I shouldn't write this stuff as I want more dumb money in the market but people being people just wont get it anyway. I could give 100 new traders EXACT instructions on how to profit from the market and only 1 or 2 would make it. The reason for this is most people wouldnt even read the instruction properly, then a chunk would not follow the instructions. Then another chunk would give up because their expectations are not met. another chunk would bitch and moan and say the rules are wrong. just the nature of humans. and it's getting better, people nowadays want everything now, for no effort, they want in on 0% interest, they want an app for it, there has never been so much dumb money sloshing around.
Well to be fair you did not invent the concept I highlighted. But saying it warranted the kudos. (just keeping that head small for you)