Trade Ideas

Institutional Team report: Month 2

This started off as a bit of a test case but it’s starting to gather some momentum. Two of the more promising young traders, 1 medium term trend trader and 1 intraday trader, have been trading my strategies exclusively for the last 2 months on dedicated accounts.

The day trader can often trade up to 60 times per session, which is a lot for a discretionary trader. His brief is to be square overnight and to look for trading opportunities in line with my overall view during his trading session. After some early hiccups when he strayed a bit from the strategy, his performance is very strong at around +15% per month unleveraged. His feedback is that it’s enlightening for him not to have to figure out what to do on a session basis. He simply ‘turns up for work’, gets told what the strategy is for the day/week, and then looks for opportunities. He doesn’t have to waste energy trying to figure out directions.

I’ve always been a big fan of the medium term trend trader, who has that magic talent of being able to maximise profits when he gets on a move. With him it’s taken a bit more convincing to get him to buy into the strategies but success breeds confidence and he has picked up 2 very nice moves already, delivering around 10% per month unleveraged.

As we know, it’s easier to make money when you are picking the market right and we have been picking the moves pretty exactly for the last few months. Nevertheless, the art of trading is to maximise profit when you are right and minimise losses when you are wrong. Hopefully we continue to get this bit right.

Ideally we would have between 6-10 traders as part of the team as statistically, that shows the best chances of success.