Sunday, June 6, 2010

Previous Trading Game - March to end of May

Congrats to the stranger ag732, I tried to contact him for his prize but no response.

Unfortunately, his strategy employed high frequency option trader with a very high beta. I remember he had returned over 50% at his peak. However, without any risk management he ended up with a still impressive, but much lower, 33%.

As you can see I made second place this time, quite the opposite of the last game. I on the other hand only made one trade therefore my return was so low. Ideally that strategy was optimal for taxes and would have benefited greatly if I had more capital. With such a small capital base, I've learned that I would have to be much more active to produce stellar returns.

As you see 55% of the participants held cash positions for the whole time while the last two places were unfortunate with high exposures to volatile commodities.

For the most of the games, everyone was busy with finals so perhaps our next game will be more exciting with active players.


Alexander Lê
Managing Partner
Analyze Capital LLC

1 comment:

  1. I wish I had been active in this game. Embarrassing to say the least.


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