My PnL: From 170k to 460k in 14 months

He's likely trying to hedge his risk. If he continue compounding with his own money, he's still exposed to risk to himself. But if he forms a hedge, he's only risking other people's money and making the same amt if not more.

Still, it takes more then 1 year to be exposed to all kind of market environment changes. 1 year is not adequate data. If he's automated his strategies then an investor would like to see how it would have performed historically.

 

This is very true. How do we know it's not luck is the question investors will ask.

Edit:
I mean smart investors. However most investors are dumb so his plan might work out.

 

If 170k to 460k in 14 months, annually compounded rate is x=
1.161333

by 170*(1+x)^(14/12)=460

Therefor for the next 10 years yours will be
2.16^10 =
2210.739 times

and 30 years later
2.16^30 =
10804695562 times.

Probably Buffet and Gates should be broke 30 years later

 

So he has half a million dollars?! What does he want from us again?? :-0

 

Think about the greatest traders. They are all managing/have managed OPM before. It is impossible to scale up quickly by using your own money.

 

I use swing trading.

 

What can half a million buy in a major financial center. maybe just a bathroom?

 

It shows a steep learning curve. I start with very few strategies and then developed new ones.

 

Unfortunately that track record as of now is nearly worthless as far as raising money from investors. It's impressive gains no doubt and has clearly done a lot of good for your personal account, but I seriously doubt other investors would touch it. Not yet anyway...

You had a few good months, but anytime massive monthly gains like that are possible, the opposite is also true. There is no trading system that can make 50% in a month, but can't also lose 50% in a bad month. Unfortunately risk reward goes both ways.

If you could somehow show over the next couple years, through different types of market environments that you aren't going to give some or all of that back, then you might have something.

But until you legitimize your track record and have something that would interest investors, just keep doing what you're doing and I hope it works out for you. On the very off chance (no offense) that you are actually that good, in a few years you won't need other people's money.

 

Bullseye -- I never understood why truly excellent traders want to deal with other people's money -- it's just a pain in the ass.
...if you are Truly good, you'll be rich in no time with compounding your own personal account.