Dan

Back when a dollar was worth something. Though to be fair the kind of people to not put their trolly in the bay are gonna need that dollar for their next baggie.

Any hope for our TTF longs or is this mostly in North America?

Interesting read thanks for writing up. 7% is extremely small DD and I know that you said you're different and need that, but it's hard to earn without risk. Though maybe I know nothing as I don't do any explicit market neutral strategies. Personally I'm at 13% DD, but have no changes to make as that's a normal annual DD and everything is working fine. I did spend time in Crypto though which gives me more of an iron stomach.

E.g. stop losses are useful as an intraday execution technique for trend following, but useless for mean reversion. Puts are useless in terms of long term returns, but useful to enable you to push risk in other areas. Vol adjusting is useful to help you sleep at night, but useless at increasing returns. All my opinion and specific to my own stuff of course..

They're all useful in some situations, and not useful in others. If you accept that there's no holy grail solution to everything, then half the battle is won. Use what's useful for your requirement, throw away what's not..

When you're losing big $ a little dark humour goes a long way ;) Can only laugh from a place of being in control, I'm sure Leopold and those funds weren't laughing..

Often it's not blow up in the context of getting liquidated and losing the account. Just a 25-30% loss can be enough. If the investors don't have tolerance for it, redemptions can kill a fund and selling at the worst time is too devastating. Having lockups can prevent it I think. Also a dirty trick they pull is to shut down and open a new fund after drawdown because they only get paid above a high watermark. If they have to make back 20-30% then they're working for free. If they restart as a new fund they can get paid performance bonus much faster.

💯Crypto is great training for the mini-meltdowns in stocks

Wait till you see November

Can confirm - it gave plenty of discounts on Thu ;)

Might need a healthcheck on r/TQQQ

Short hogs is good. It's the vol-adjusters 😅 CTAs cutting risk as vol increases puts the brakes on trends. If they're real trends and we're slow enough we'll get the rebound if any continue.

😆

haha. No hiding in futures either, many trends coming to an end at the same time.

Yeah that's right, just the profile of the strategy. Doesn't mean it's better or worse, just different. Though trend with 45%+ win rate & getting stopped out less is better for the portfolio than super tight stops with low win rate. The "R/R" will be lower but it makes more money so who cares..

It's not even correct.. traders are paid by how much more they make than they lose - across all trades in the whole portfolio. It doesn't matter the split between win rate and whatever win/loss ratios..

Yeah that's my point though - bleeding cash is an issue with rates or a job. It's not caused by others selling property.

I've noticed the opposite, since it's illiquid and only measured monthly, most don't want to sell for a loss and prefer to just wait it out. Property moves in long cycles, it's silly to trade it rapidly with all the costs.

CTA yeah not good, KMLM I don't know much about. I'd prefer Return Stacked $RSST and $RSSY, or $DBMF for pure low-vol trend. @choffstein and @InvestReSolve know their stuff.

Yeah I hardly get anything out of trading books, exception being Clenow's and Carvers. A few other good books (more for history & entertainment) were The Quants, Dark Pools, and Market Wizards series. I think the usefulness of books for any purpose is in decline, digital formats are more accessible and efficient.