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SRI - investors discussion

I ran into an interesting manual trader Sunrise. He has three darwins, the flagship is SRI, he won the last month Darwinia contest.
All his three darwins have very high VAR and moderate DD (low considering the VAR), great capacity, very good LA score, and excellent performances.
And regardless the RS mediocre attribute scores, the risk management (if you don’t mind to forget the high VAR) is pretty good. Also the trading behavior looks very straight.
If I was an investor looking for something different and some emotions in an apparent under control trading environment I’d invest on this trader darwins.
I’d like some opinions…maybe I missed something.

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You insist with not studying how the current VaR system works :slight_smile:
Very high VaR means less chances to have a high drawdown for the Darwin.

With his VaR at 65%, investors are risking 6.5 times less than what he’s risking with his own account. Without considering the risk manager intervening, this means that the maximum drawdown that investors can have is 15.38% right now (if his personal VaR will not change), that happens if the trader burns his account.

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You still don’t get it, I have many post explaining exactly that. And it is not new, it was same way before the change. The high VAR like this (65%) is usually very dangerous for investors, not because it affects them directly, it is because 99% of traders risking so much in the underlying account end up blowing out the whole account…including all investors on the way.
I hope this time you read my post, not try to be right when you are wrong.
By the way, I tried to explain it to you many times, be a little bit more humble. I don’t like to waste my time when it doesn’t worth it.

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A high risk profile is not bad per se.
It shows skin in the game but above 30% is very likely that a very bad event will blow the account even without gambling and overtrading.
It could lead to a paradox situation where the trader blows the account and gives up even if he has an alpha and the DD of the darwin is a recoverable 25%.

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Yes, that’s my whole point, and specifically with SRI that run a 65% VAR. But until now his behavior and control is almost impecable. Very unusual, and it is a 2 years darwin…so very interesting case.

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Words to live by.
Thanks, really appreciate the reminder :slight_smile:

What I really like about SRI is that the trackrecord starts with a drawdown, deep and long.
This proves that there is no taylored inception coming from a farm.
The drawdown has been managed and endured.

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Trader’s equity >10k @ 77% VaR
This is definitely skin in the game !
Congrats for the 3000% of the underlying strategy!
@sunrise

 
Well, in the distant future you’ll surely LOVE my darwin… 20 months of drawdown and counting!
 

Now, I think I’m going to kill myself…

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