Performance report and verification

Discussion in 'Professional Trading' started by xiangfin, Dec 20, 2007.

  1. xiangfin

    xiangfin

    Hi,

    My partner and I have turned 40k into about 800k this year (yes more than 20x), and we decide to start a small hedge fund next year, with our trading system.

    My questions:
    1. how to make presentable and verifiable performance reports to investors? We use InteractiveBrokers as broker, does it provide better reports than its activity report? Can it verify the result?

    2. any third-party services can help us?

    3. if we have to do ourself, any sample/template out there? Can we get it verified?

    Thanks. Merry Christmas!
     
  2. First of all, a serious investor would disregard your claim in the past. Second of all, a serious investor would want to know HOW you did this - what is your Sharpe & Sortino ratios, were you seriously overleveraged, your max drawdowns, your profit factor, expenses, whether the profits came on a few big trades, and a lot of other stuff. Thirdly, a serious investor would wonder why you need to trade other people's money if you claim this kind of return. I would consider your claim as having a high likelihood of blowing up if you traded real money like that.

    Your claim seems too incredulous, and you need to prove it "under the lights." Broker statements are nice, but you could also instead get yourself tracked via one or more of the following services: timertrac.com, collective2.com, striker.com, attain capital, robbins world trading championship, hulbert, futurestruth.com, or a few other places.
     
  3. dabao91

    dabao91


    My partner and I have turned 40k into about 800k this year (yes more than 20x),


    WOW! That is incredible. How did you do that? Did you trade REAL money? or it is paper account?

    If you already have 800K and if you can repeat your performances next year, you will have 800k * 20 = 16M.

    And in third year (assuming you can have the same performance), you will have 16M * 20 = 320M.

    Why you need to manage some one else money?
     
  4. Bingo.
     
  5. Wow, get rid of your partner and trade on your own, so you can bag the profit all by yourself!

    Forget starting a hedge fund. With your system, you will be filthy rich in no time.

    Also, you need to continue to build on top of this impressive year to attract any serious investors.

    I would never give my money to anyone with ONE YEAR of track record.



     
  6. oraclewizard77

    oraclewizard77 Moderator

    So let's assume I have a system with around 15% drawdown, over 40% return per year real money, and proven results through C2 of over a year.

    Is there a way for me to trade for a hedge fund? How would I go about attracting capital, or do I just need to settle for my many subscribers that pay me a monthly fee to trade my system through C2?

    Or maybe I need to write a book on trading like the rest of the market wizards.....
     
  7. xiangfin

    xiangfin


    Hi rcanfiel,

    We want verifiable performance reports just to answer questions like yours. Thanks for your questions tha we believe are commonly raised, and we will addressed them one by one.
     
  8. xiangfin

    xiangfin

    Yes. The results are from REAL money.
    We may also want to trade somebody else's moeny because we have another strategy with more capital requirement, and we want to diversify. Renaisance Technology also traded others' money until last couple of years.
     
  9. xiangfin

    xiangfin


    Repeat here:

    We may also want to trade somebody else's moeny because we have another strategy with more capital requirement, and we want to diversify. Renaisance Technology also traded others' money until last couple of years.
     
  10. xiangfin

    xiangfin

    We build this system together, and none of us should ditch the other. Also, it is a global strategy trading almost 24 hours--focuses on different markets.

    That's why we are preparing 2-year track record to the end of 2008.
     
    #10     Dec 20, 2007