That bald guy telling HED presenter to take second mortgage and higher risk was nonsense advise. Startups need to have lots of staying power and high risk dissolves that. Also having him shut down the newsletter business was another load of stupidity. You can give same signals to 10 traders and after some time period each will have different returns. On the otherhand, HED guy had 7 years of returns amounting to 224% cumulative as per his annual report, which is good 17-18% a year. If he did not trade his own calls with own money then no point starting a hedge fund. I would like to know him as a real money trader too. Making calls is half as easy. His system was also suspicious and looked like a some Advanced GET, Minor Dynamics type of software being presented as exotic Math model. That's why he reserved the right to override and called the system signals only 60% on the automatic.
Interesting video, the second pitcher thought he could get sharpe of almost 3 managing $1 billion. Something like 9% a year with 4% drawdowns. His strategy was short term, holding for 1 to 3 days in markets like ES and FESX. For comparison i was looking at Toby Crabel's fund returns, Crabel has about $2 billion, employs 85 people and has a sharpe of 0.5. Averages 9% a year with largest drawdown of 16%. So dude #2 thinks he has the Holy Grail and they didn't even question it much, i doubt he could get a long term sharpe of anything near 3 on even 100 million.
Can you post a link to the video? The browser on iOS doesn't recognize the embedded video in the post. Thanks.