Trembling Hand
Can be found on the bid
- Joined
- 10 June 2007
- Posts
- 8,852
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- 205
No sorry you are very wrong. They do NOT look at return or profitability in a % of account capital. For friggin obvious reasons!!
And then if you have that under control, what they really want to know is can you make them money, which is what % return is, yep?
No sorry you are very wrong. They do NOT look at return or profitability in a % of account capital. For friggin obvious reasons!!
No sorry you are very wrong. They do NOT look at return or profitability in a % of account capital. For friggin obvious reasons!!
Well it's not friggin' obvious to me! Perhaps I'll apply to Propex and tell them I lost 70% of my account last year. That should get me a seat next to yours truly. We can be trading buddies.
Ok I'll spell it out for you. They want traders who can size up, are active and can survive long term by controlling their own risk.
Trembler you're cracking me up today!
Prop shop will look at draw downs, frequency of trades, Sharpe, good money management, etc etc. And then if you have that under control, what they really want to know is can you make them money, which is what % return is, yep?
Nope. I get to size up to levels that are just not possible when trading your own account. The chance to be a real player :grinsking
The other thing is there is no account drag from tax, draw down, and living expenses etc. Hugely underestimated by dreamers who one day hope to trade fulltime.
% return is nonsense when they are wanting you to go from 2 lots to 100!!
And there it is RIGHT THERE.
And for those trading $5000 of stock
Try it with $500K.---of your money.
Having spoken to a few traders, my understanding is that return profiles are actually not dissimilar between say a daily swing trader and an intraday trader (hinging largely on cyclical vol), it's the massively lowered variance that makes the difference between a Sharpe ratio of 1.5-2 and one of 6.
Are you saying psychological factors come into play? Most of your Aussie stock trades are $5000 lots if I remember correctly?
What's a good Sharpe ratio? I read that S&P500 long term Sharpe is only 0.4. Does that mean a Sharpe of 2-3 is pretty decent?
Are there any Prop shops in Melbourne? I don't want to move to Sydney the coffee is lousy
Yep, 2-3 is quite good.
I believe 0.7 is the "benchmark" for finding trading systems with potential. e.g. if you code a super simple system like 30-50 day breakouts 30-50 day time exit and ran it across a basket of futs, the markets/systems which naturally give a Sharpe of >0.7 would be good candidates for trend following systems.
anyone dealt/ had any experience with Aliom before?
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