What is the perfect manager? Here is a list of the ideal characteristics a money manager should have that I came across on this website.
1. Have very low drawdowns relative to their annual performance. 3:1, 4:1, 6:1 or better.
2. Strict risk control. Place exit stops every time they place a trade. Do not add to losers. Have daily or weekly risk control meetings with a trading partner or trading group.
3. Be a daytrader. Hold positions a short time, be flat or near flat each evening and over the weekend. Thus avoiding price shocks, global altercations, systemic risks.
4. Have an audit done on their track record by a reputable firm.
5. Have at least 18 months, the more the better, of solid returns.
6. Be experienced, 15, 20, 30 years in the markets.
7. Generous, easy to get along with managers and marketing folks tha tI enjoy dealing with and can trust.
8. Scalable system.
9. Low or very low use of leverage, the lower the better. If you can make 15% using 2% margin or 50% margin – all else being equal I’ll take the 2% margin guy every time – that much less risk.
10. Leveragable – if I can put up 50k and have it traded as a million – terrific. Again, less capital risk in terms of FCM risk. (i.e. Refco, Tradex)
11. Solid back office based within a large firm.
12. Small minimum for a test account.
13. Simple, understandable trading methodology and edge that makes sense and seems sustainable.
14. Partial systematic, part discretionary so the traders can adapt to market changes.
15. Have good friends and a good reputation in the indstry.
16. Work with big names, large institutions.
17. Have allocations from big names.
18. Have a top-ranked trader on staff.
19. Over, or well over, 20 million under management.
So what do you guys think about it? complete? anything to add.
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