What to do if you are fund manager?
What to do if you are fund manager?
Does anyone have any suggestions?
Thanks in advance for any suggestions
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Thanks in advance for any suggestions
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As a fund manager, he gets no choice based on fund's requirments , does anyone have any suggestions how you handle this situation if you are fund manager?fab1usa1 wrote:Accept what the market will give you and then vow to never accumulate a "heavy" position again.
Thanks you very much for any suggestions
Hedging the position is not an option based on the fund's restriction.akhoury wrote:Can you hedge the position, or offset it with an appropriate allocation? Assuming it is long can you generate short call premium? Just a couple thoughts that occur to me.....ack
Does anyone have any suggestions on what to do if you are funds manager?
Thanks everyone very much for any suggestions
I swing trade so I don't buy anything making a new high, instead I go long on instruments that are oversold. I exit the position after the swing when the price moves into overbought territory.
My portfolio has 10 slots, each position uses 10% of total equity. If a position should go to zero then I lose 10% of my portfolio value. I never "double down" on a position if the price continues to decline. Ten percent is ten percent is ten percent.
I do use a technique called dispersed entry where I divide my position equity by two. I buy 5% at a specific limit price, and another 5% at a lower limit price. This tends to smooth out the equity curve but lowers the overall return.
My portfolio has 10 slots, each position uses 10% of total equity. If a position should go to zero then I lose 10% of my portfolio value. I never "double down" on a position if the price continues to decline. Ten percent is ten percent is ten percent.
I do use a technique called dispersed entry where I divide my position equity by two. I buy 5% at a specific limit price, and another 5% at a lower limit price. This tends to smooth out the equity curve but lowers the overall return.
I trade individual stocks so I get to choose from a universe of nearly 8,000 stocks. Although the broader indices are in a strong bull market, there are still individual stocks that are going sideways or trending downward. But your market scans should uncover candidates that are trending upwards yet still exhibit swings from relative highs to lows and back again.
10% of total equity per market, no more than 10 markets concurrently. I rarely have a full portfolio at any given time.
The typical hold time per market is 3 to 7 days, sometimes less, sometimes more.
On the odd occasion when markets are correlated after a macroeconomic or geopolitical event, I will "throttle" new positions so that my portfolio does not fill up on the first day. I will take 1 maybe 2 positions on the first day, and then cancel remaining orders. Then on the second day I will pick up another 1 or 2 positions.
The typical hold time per market is 3 to 7 days, sometimes less, sometimes more.
On the odd occasion when markets are correlated after a macroeconomic or geopolitical event, I will "throttle" new positions so that my portfolio does not fill up on the first day. I will take 1 maybe 2 positions on the first day, and then cancel remaining orders. Then on the second day I will pick up another 1 or 2 positions.
Back to my basic question, as a fund manager, since they are managing a lot of money, 10% of capital almost equal to 50% of daily total transactions on market, if fund manager uses your strategy, and keep 10% of capital on purchasing assets, then it only takes 10 trading days for investing all cash into markets for a strong up trends, but remember, when market suddently turns down, fund manager requires more than 10 days to sell out all his assets, because asset's value increase, which is over 50% of daily total transactions. What to do if market starts to turn, and drops so rapidly? but if market keeps dropping like this everyday, within 5 days, the return will change from positive into negative. If fund manager trys to sell more than 50% of market's daily transaction, the price will drop more, which fund manager does not want to see it, so there is a daily limitation on selling assets.
Does anyone have any suggestions?
Thanks everyone very much for any suggestions
Does anyone have any suggestions?
Thanks everyone very much for any suggestions