Sorry BJL I was grumpy this morning and looking for a fight. Nice job on ten years in! That's something you can truly be proud of as it includes the internet years which took a good amount of luck & skill to get through and still have friends much less clients.~ stoney
no problems mate. have my bad days as well haven't been managing OPM for ten years. been a corporate bond trader for five and traded my own money for 4 years first. in my first year of trading other people's money and so far all my customers are still my friends
Nice performance so far ( vs. benchmark). Question: why not short the benchmark and go long on the fund a la pairs? You would have be 7% up on absolute bases by now
I still think that fund failures or sudden significant degradations in performance are "human factors" related, more than methodology/system breakdowns. Trading OPM in a fund is like "running through a minefield".....there is a hyper vigilant minute to minute psychological awareness needed to keep all your "plates spinning on sticks". At any moment, you or your collective team can let their guard down from a psychological human factors standpoint, which can START a disaster. Fund failures are exactly like plane crashes imo....many times there are a string of "bad decisions" while in a weakened psychological state that turn into a point of no proper return event (pilot error). These human factors can be pride, ego, exhaustion, confusion, poor communications, over or under confidence, etc. The inability to CATCH the first few bad decisions in a thought process can turn into a string of bad decisions, which has a very high probability of creating a disastrous outcome (think of how quick a few bad decisions strung together will affect you running through that exciting minefield). The inability to recognize the initial "bad decisions", and then many times later, the lack of action after the realization of those first bad decisions is the death card. From here on it is all downhill, if there is not immediate proper and corrective actions during the initial bad decisions period. We all know human nature extremely well, but we fail many times to RESPECT the power of the negative aspects of our human nature as it can work against us. When humans are indecisive or lacking proper response during the realization of a bad decision string, it usually leads to a very undesirable and UNINTENDED result. So my message to you all as traders is this....have a blast running through that exciting market minefield, but stay hyper vigilant to your "decision strings" so you don't get BLOWN UP!!! :eek:
And just where did there personal wealth come from? PREVIOUS PERFORMANCE FEES!!!! unless they were born wealthy, cause it aint from day trading at ib.
Spectacular results, the kind that lead first to fame and fortune, and then to blow-ups and infamy, if they don't involve illegality, monopoly, or cartels, are associated with spectacular risk. Seems no one has yet been able to cheat for long this fundamental relationship. It is so much more enticing to take the plunge when you're risking someone else's money. Though many have done it, you'd be a fool to take those kinds of risks with your own money. Apparently there are many fools.
Schindler's fund in the last six month is pretty good. I really hope he will be successful this time.