CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Realistic Expectations

When SP500 drops 20% everyone freaks out thinking that bear market is coming -> and in general portfolios, equities ARE the risky assets, prone to drawdown.

@CavaliereVerde I think your goals for return alongside your DD tolerance is too low.

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I base my opinion on darwins with long native trackrecords and CTAs HFs with long invested trackrecords.

@SECURIX
Very interesting this SG CTA INDEX .
Do you know if it has been designed today or in 2002 ? :wink:

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Just a short note from my side. There is nothing wrong with confidence but often the line between confidence and overconfidence is very thin. Overconfidence is the root of many massive fails, especially in finance, as it often results in excessive risk-taking.

From my experience, you should apply extra caution whenever someone guarantees a maximum drawdown or a bulletproof system. Everyone should be aware that this just isn’t possible and to me, those claims are just an indicator for overconfidence.

Personally, I prefer the humble approach as presented by integracore2. Very often though, those that are outgoing, loud and overconfident are rewarded with decision making positions as they are perceived as competent (especially in finance) … I wish we had more woman in this business. However, that’s another story :wink:

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No comment :grin:

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mmm so it is just a wonderful backtest of the survivors, very easy to do with darwins… stocks… CTAs … :smiley:
hindsight power…

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you are correct, 25 % drawdown is a very ambitious DD to avoid.

as we know you are not a serious trader unless you lose half your account and then show how you “MANAGE” your DD. never mind you should have managed your account better.

Welcome to Darwinex , if you don’t have a rollercoaster equity curve you are not a CREDIBLE trader.

That’s not what I said. There is a difference between trying to avoid a DD of 25% and guarenteeing a max DD of 25% will not be exceeded EVER.
The rest of your post is just polemic.

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okay, do you have anymore boring platitudes about humility

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@ignacio please bring on that ignore list :sweat_smile:

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FACT:
Long trackrecords alway have a DD > annualized return .

Having said that, everyone is free to believe to be the best trader in the world.

There are 2 kinds of traders:

  1. traders that endure DD
  2. traders that stops trading after DD

The choice is up to investors. :wink:

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About humility I dont fear anybody… :sunglasses:

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I agree.
You must accept periods of drawdown and a bit deeper than that in order to capture significant returns, especially in the beginning stages of Forex investment. Later, when you have huge capital then you can invest in funds that get 15 to 20% with only 5% DD

Could you please point to some of those funds? Also, I’m not sure what do you mean with “huge capital”, are you talking about hundred thousands, millions, hundreds of millions…?

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There are quite a number of alternative investment funds… one boutique brokerage that specializes in Fund Managers is Mount Cook Financial.
I think $500,000 is a good amount to have under management… then after 3 years track record the bigger investors begin to become interested.

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@OutsideTheBoxHK I think that I misunderstood you then. I thought that you was talking about having huge capital to invest, as an investor. But you really meant having huge capital as AuM, am I right? And having that capital under management a trader could access some kind of good brokerage for traders with big accounts, like MTCook.

But I’m confused, I thought that you meant that in some of those funds an investor with huge capital (not a trader with huge AuM) could get 15-20% with only 5% DD, investing in the fund. I don’t understand what do you meant.

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Exact, where are those funds with 20% annualized and 5% DD ?
If they existed i could invest them without the need to go crazy and learn to trade…

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Would appreciate to get more real studies/results published (transparently) by Hedge Funds, about their Calmar, Sterling, RoMaD data…

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Let me advice this unique page that compiles all the indices :

https://www.barclayhedge.com/barclayhedge-indices/

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The average performance of Hedge Funds is disappointing.
Let’s look to the best ones, the ones with the longest trackrecord :

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