The largest amount that retailer could manage &

The largest amount that retailer (single individual) could manage & still beat the market, be it Fx, equities, bonds or all together in portfolio.

$20M ,.$100M ,.$1B ?

At such size/scale, - would automation be a must, or it's still possible to build those blocks mannualy, while achieving such results ?

Is there a theoretical/stereotypical limit for how much retailers could scale ? Like at which point in portfolio size, the returns would start to fall bellow of those that market offers ?

,,At first you run the bis & then the bis runs you"
(No ,,free" time left)

Thanks.

 

For the kind of trading I do (diversified futures, medium speed mostly trend following) I'd say that to:

1. 'always' (Say 99.9% of the time) be able to execute at the inside of the order book without going deeper
2. be no more than 0.1% of the daily volume to avoid market impact
3. Be able to allocate whatever you liked to any futures contract in your portfolio without worrying about (1) or (2)

... you're probably looking at @ 50 to 100 million.

For quicker traders in illiquid stocks.... would be a lot less.

GAT

 

Is 50-100 million risk capital (net liquidation value) or underlying asset value?

 

Risk capital at a 25% annualised standard deviation target. So 12.5 to 25 million dollars of annualised risk.

GAT

 

I would think any amount could be maintained as a retailer as long as they spread it across multiple securities and scale in and out in block sizes that remain under the radar, perhaps utilizing the VWAP to scale in and using block sizes that are about average to the relative security's order size so as to remain inconspicuous to be recognized by competitors.

 

Meanwhile -

 

I always try to focus my small part of net worth to forex trading. I prefer to set it in my risk to reward ratio so that I can manage my other investments too. I never stick to one type of source of income. I believe in diversification.