What is your Sharpe?

Discussion in 'Professional Trading' started by TraDaToR, Nov 14, 2016.

  1. Fidelity Investments States my SEP IRA which uses the 3x version of my ETF Pairs Arb is annualizing 71.79% in the 5 year period with a 1.52 Sharpe Ratio 1.89 Beta Standard Deviation of 46.38, and unless Tradator states these particular statistics we know such a number as beyond 2 is impossible if properly accounted for.
     
    #81     Oct 21, 2020
  2. tradrjoe

    tradrjoe

    I hope you were joking. Sharpes higher than 2 are difficult but definitely exist in professional circles. I am not vouching for Tradator, but much higher sharpe strategies exist for limited capacity. Market making strategies commonly have sharpes over 10. The best quant funds such as Renaissance Medallion and Millennium are able to achieve sharpe 3+ on multi-billion AUM.
     
    #82     Oct 21, 2020
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  3. A 20:1 HFT is not part of a sharpe ratio calculation as returns are pay for play limited to some arbitrary halvsie or as such, essentially limited due to a leverage by the exchange.
     
    #83     Oct 21, 2020
  4. tradrjoe

    tradrjoe

    No idea what you mean by pay for play or "halvsie", but the sharpe ratio metric is independent of the volatility you set the strategy to.

    EDIT: going through your post history, I just realized that I've been trolled by a spambot
     
    #84     Oct 21, 2020
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  5. sef88

    sef88

    Just keen to follow up, how's your sharpe since 2016?
     
    #85     Oct 21, 2020
  6. TraDaToR

    TraDaToR

    I haven't calculated it recently, but I suspect it has gone down a lot, since I had a good drawdown last year that lasted 5 months peak to peak. I had no losing months in 2017 and 2018, 2 in 2019 and 1 this year. 2018 was my best year but I may top it this year. I am slowly moving from intraday capacity constrained liquidity providing to more long term fundamental/curve plays. My sharpe should drop as my long-term trading takes the driver seat( but my income should go up as capacity is pretty high ...).
     
    #86     Oct 23, 2020
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  7. sef88

    sef88

    Sounds impressive. Are you doing discretionary or systematic trading?
     
    #87     Oct 23, 2020
  8. d472f12b1549a2a3131646ee50141e8b.jpg


    This is mine, mostly use it for Popcorn.

     
    #88     Oct 23, 2020
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  9. d08

    d08

    2:30 is completely unrealistic. Try again.
     
    #89     Oct 23, 2020
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  10. TraDaToR

    TraDaToR

    Discretionary. I used automated systems in the past but not anymore. I took me a while to get the microwave joke...LOL
     
    #90     Oct 23, 2020
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