i've always been interested in VN. i mean hell the guy is capable of making >30% returns year on year, only other funds capable of that are rentech SAC and probably centaurus. Any ideas as to how he actually trades? i mean what kind of strategies does he actually employ?
He has also been proven capable of making 100% drawdowns. So, it's a mixed bag, if you ask me, and that's a kind metaphor.
Something to consider. Although we don't use the term "return on investment" since that normally applies to passive investing, not active trading (since the $$ is just a tool to be used by our traders to generate earnings). If you can get 10% returns on your money (pretty easily doable, right?), and then use additional capital, perhaps RegT like 6 to 1, then would you not be generating a pretty good amount of $$ from your investment? Allow for "draw downs" (I hate that term, I just say "losses" - it happens to the best of us)...so, take that 60% and divide it in half, and end up with 30% "returns." But, of course if you're making 6 figures with a $20K start up amount, that might be even better (take work, obviously). My brother, who handles the family trading LLC (much better him than me, LOL), expects to return approximately 36% on our capital invested (and has), again, using RegT margin of course. FWIW, Don
His book was a total waste of time. It is all about how good he is, how smart he is. Even his last name is a speculator in Hungarian. Do not think about sex while trading. Thinking about sex will make you loose. That is why he trades with his wife so she can relieve the pressure. And because he is the smartest person that is why he is the best. He is a champion of squash because he is smartest and his wife blows him every morning (and it is about two people that play squash in the world). And do not tell him about his blow ups because he is smartest. Should you still decide to read his book DO NOT EAT close to the end of the book, I puked at the end.
Niederhoffer Investors also expect and stomach months of 30% drawdowns, according to a Bloomberg article... making 30% a year highly leveraged while drawing down the same amount 2 or 3 times a year seems unbalanced to me... actually, something seems off in the R/R there. George Soros- who, by the way, made over a billion last year- stopped using VN to manage money (in 96 I think). Soros said VN's method was "flawed, and made money only when the markets were going sideways, he lost money in a trend". He also said VN had the decency to close his account when he was losing money but was still up, but he has not used him since. Personally, VN seems like an interesting guy though.
I didnt make it to the end. The book is useless. Unless you want to read about some guy who thinks he's the greatest in the world. I like when he puts up pictures on his website of his get togethers. Makes the guys from Revenge of The Nerds look like studs.