These FX traders pull 100%+ per month, why can't hedge funds do this???

Discussion in 'Trading' started by short&naked, Apr 12, 2011.

  1. MKTrader

    MKTrader

    Those 1-month FX contests are a joke. Anyone can trade with really high leverage and occasionally make 400% in a given month. There's a reason you never see the same people winning those contests month after month, though. Mr. 400% becomes Mr. Margin Call the following month.

    There's also a reason you rarely see 6- or 12-month contests. (I think FXStreet may run a longer-term contest, but I'm not sure.)
     
    #11     Apr 13, 2011
  2. Joman

    Joman

    Leverage is a factor:

    - With an account value of 100k a FX Retail trader can scalp 5-10 millions and profit from the intraday market volatility.

    - HF manage several millions and can't scalp billions to replicate the same kind of performance: they have to scale in and out in longer time frame or to be much less leveraged.

    And investors would run away with the drawdowns showed by Duka's "trader's of the month" :D
     
    #12     Apr 13, 2011
  3. #13     Apr 13, 2011
  4. I agree
     
    #15     Apr 13, 2011
  5. +1
     
    #16     Apr 13, 2011
  6. ...and actually being paid 2/20 for it...in some cases 3/50 (SAC Capital). ay, ay, ay...

    I think, I have to change this landscape a bit and charge 4/60 for REAL PERFORMANCE :D :D :D
     
    #17     Apr 13, 2011
  7. I thought you had a "5 and 100"? :confused: :D
     
    #18     Apr 13, 2011
  8. I am not yet as "good" as Goldman...:D
     
    #19     Apr 13, 2011
  9. This fee structure is too low. Remember clients are willing to pay for good performance.:cool:
     
    #20     Apr 14, 2011