With some threads talking about how tough the market is, I'm curious what you guys think would be consider a "world class" return in the market today? The top of the industry. On a risk adjusted basis. Any estimates?
A monthly sharpe ratio of better than 50% over the past 3 years appears to put you near the head of the class at IASG.com. Why? What's your risk adjusted return?
Personally, I think it's a pretty pointless question, but if really do want to ask it, I think you'd be better off rewording it. What do you really mean by "in the market today"? What's the actual time period represented by "today"? What kind of trading are you talking about? Is your question related to what would be a "world class" return if the conditions of "today's" market (however you define that term) were to persist into the future? or were you meaning to ask what would have been a "world class" return over a certain period of time (eg last 2 weeks, 3 months, a year) to today?
I dont think its pointless at all. Instead of focusing on how tough the market is, focus on a benchmark that is at the top of the class. Like a baseball player chasing a .400 average. One prop trader told me that anything above 2-3% positive return for the year is doing really well. I just want to see where I am relative to the top traders out there. By trading, I'm simply talking about stocks in the current environment. Monthly return over the past few months.
Enough to pay your monthly nut, with a bit left over for leisure pursuits, sounds pretty good. Best, David
When you make enough to contribute to your retirement fund and keep the wife/girlfriend happy, I'd say you're probably made it to the top 1%.
To be in the top 20 on the iasg website you'd need: 11% return Jan. - Mar. this year 60% return past 12 months 25% CAGR past 24 months 26% CAGR past 36 months 21% CAGR past 60 months
"21% CAGR past 60 months" averaging 21% a year for 5 years would be very impressive. if you did that as a hedge fund manager you would be making serious cash.
Aaron is over 100% CAGR for past 36 months. I think that's impressive. Hats off to another ET member!!!!