I get asked this question on average 3 times per day and the answers are fairly logical.
1. Profitability:
– Consistent profit relative to the size of positions you take.
– The ability to make more on a ‘good day’ than you lose on a ‘bad day’.
– Being comfortable managing increased risk when you are seeing the market correctly.
If you can provide verifiable confirmation that you positively tick these boxes, then you are already in the top 2% of all traders.
2. Risk Management
A sensible drawdown policy which is NEVER breached.
3. Trustability
– If you make claims about yourself, you must be able to back them up with references, data etc.
– If you are promoting a track record based on one account and hiding poorly-performing others, you will have no future in the industry.
4. Activity
– Active, enthusiastic traders are much more likely to receive allocations than traders who trade once a quarter in size and then go on holiday!
5. Education
– All else being equal, the well-educated trader is more likely to get an allocation and much more likely to get a job with a bank or hedge fund (where university degrees are often compulsory).