05 ts pf
- 2. TS PERFORMANCE 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 2
- 3. TS Performance – What is it? A measure of consistently profitable trading (Does this strategically add value, on a risk adjusted basis?) 1 The only badge that depends on performance 2 A goal to pursue ONCE you possess all other core traders’ skills 3 A welcome by-product of trading skill (NOT a GOAL in itself) 3
- 4. TS PERFORMANCE 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 4
- 5. Which process would you rather invest in? A track-record that proves SKILL? Or a luckystreak? ? Works in the future? Works in the future? 5
- 6. TS Performance – What’s reflected? Factor Rationale • Whether a position has been • Overcome “reporting bias” Some closed or not does not matter to traders choose not to disclose losing MtM of investors: what matters is what trades and hereby “manage” their positions investor’s money is worth NOW profitability • How to account for the fact that • Every trader has his own style, and some traders open & close none is a priori better than any other Activity trades within minutes, whereas •TS looks at Performance from the others have open positions for point of view of a “neutral” investor weeks at a time? who picks strategies • Deposits paid into and out of • Investors care about your trades, an account whilst trades are not your funding decisions Account open can distort reported events profitability unless properly accounted for 6
- 7. TS PERFORMANCE 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 7
- 8. TS Performance – How to progress? Focus on internal targets (i.e. targets that you can control) You can control the skills you learn – not the results they yield 1 Performance only counts ONCE all other badges are proven 2 Even good traders spend LONG periods losing – controlled losses are FINE 3 A BIG shot is nothing other than a SMALL shot that kept on shooting 8
- 9. TS PERFORMANCE 1. WHAT IS IT? 2. WHAT’S THE POINT? 3. HOW TO PROGRESS? 4. QUESTIONS? 9
- 10. Where to go from here? • If you haven’t covered all other badges yet, you shouldn’t even CARE about performance: • The only performance that can be sustained is a by-product of SKILL • You can target skill, but you CAN’T target performance • http://en.wikipedia.org/wiki/Alpha_(investment) • You may want to check how risk is measured at TS RISK • This article is a “stub” - Feel like you can improve it? – GREAT! • Feel free to post your questions to the TS wiki – we’ll incorporate via improving its content or on our FAQ • Have suggestions? juan.colon@tradeslide.com can’t wait to hear them • We’d love to credit you for improving it • Contributing to the Q&A sections will boost your mentor score if others like what you post (even questions do!) – helping out will reflect on your community standing 10