Money managers

November 10th, 2011, 11:06 AM

Beware of money managers (aka con artists) with many years of "experience" and lots of credentials but no auditable track record. I lost $60000. to a commodity broker (Pattison) who actually did not know how to trade to make money and charged high commissions to boot. I'm lucky that I pulled the plug on him before he zeroed me out. If you ever do hire a money manager, be sure to have a stop loss set before he trades and stick to it. I would use a stop any where from 15% (slow markets) to 25% (active markets) as measured from the peak value of the account. If he trades futures and does not use hard stops, go find another money manager.

November 10th, 2011, 11:11 AM

I think you will find that money managers are no different then average traders except that their account is larger.

95% will lose money, and the 1% that you would like to invest with are either taking too high dollar amount for you or not accepting new clients.. etc..

Check out this site if you want to narrow down better CTA's.

https://www.autumngold.com/

I believe sharpe ratio is a good way to measure along with max dd.

November 10th, 2011, 11:17 AM

doublebee

I would use a stop any where from 15% (slow markets) to 25% (active markets) as measured from the peak value of the account.

That is at least 10x too big.

Mike

Money managers

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Money managers