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Managing Star Traders (the top 1%)

  • #1
  • First Post: Apr 4, 2008 4:27pm Apr 4, 2008 4:27pm
I'd like to discuss managing star traders. I've retired from active trading but occasionally run into a star trader, one of those people who seems one with the market, who can generate 3-10% every day, almost regardless of market conditions.

I'd like to get some feedback on managing the talent so the most money can be made. What is the best way to set up accounts, how to keep these pip machines working with an eye towards the larger goal of maximum cash increase, and all related issues.
  • #2
  • Apr 5, 2008 1:27am Apr 5, 2008 1:27am
I'm sorry, but I don't understand your post. Could you please further elaborate? Thanks.
  • #3
  • Apr 5, 2008 2:59am Apr 5, 2008 2:59am
why would these people need managing? and why by you?

max
Gravity goes both ways in forex...
  • #4
  • Apr 5, 2008 4:49pm Apr 5, 2008 4:49pm
  •  TrevA
  • | Joined Oct 2007 | Status: my brain has a mind of its own | 166 Posts
I think that I understand your question.

Using your star trader for signal generation and another person/team for position sizing is the best strategy.

Retail traders often get burned because they are responsible for finding entries/exists and also allocating the funds for the trade. This dual role causes 'pain' sensitivity especially when positions are temporarily going the wrong way.

Separating these roles so that your star trader picks the positions while a money manager calls the position sizes overcomes this problem....

One final note... it is important that the trader not know the position sizes at all and is kept 100% isolated from the emotions of the money managers.

TrevA
  • #5
  • Apr 6, 2008 2:06am Apr 6, 2008 2:06am
Marvelous TreVa
  • #6
  • Apr 6, 2008 4:54am Apr 6, 2008 4:54am
Quote
Separating these roles so that your star trader picks the positions while a money manager calls the position sizes overcomes this problem....

If a "star trader" can't handle the downside of their decisions then they aren't really a star trader.
  • #7
  • Apr 6, 2008 7:01am Apr 6, 2008 7:01am
Quoting Lohr
I'd like to discuss managing star traders. I've retired from active trading but occasionally run into a star trader, one of those people who seems one with the market, who can generate 3-10% every day, almost regardless of market conditions.

I'd like to get some feedback on managing the talent so the most money can be made. What is the best way to set up accounts, how to keep these pip machines working with an eye towards the larger goal of maximum cash increase, and all related issues.
Being in the 1% category I am qualified to answer to this post. Please excuse me for not being more humble however when your records warrant calling yourself a winning trader, so be it.

Any FX trader like myself who generates returns of 20% plus a month can only do so if he/she has all the tools.

As a matter of shared information here is what you need to get into the 1% category.

(1) Maturity (No Fear ! No Greed ! Healthy Ego !)

(2) Excellent Fundamental Knowledge (Economic and Geopolitical)

(3) Good Technical Knowledge(Making good entry and knowing where to exit)

(4) Trade With The Trend (Know what the Trend Is and the time frame)

(5) Use Proper Money Management (Trade no more than 20% of Capital)

(6) The Market is ALWAYS right short term so understand that.

(7) Do Not Over Trade (Have a Trade Plan)

(8) Plan the Trade and Trade the Plan

(9) Keep learning, reading and investing the time and make your own decisions as it is your money or others if you trade under a "LPOA"

Have a Great Sunday and all feedback is welcome !


Bruce
{Promotion Removed}
  • #8
  • Apr 6, 2008 7:27am Apr 6, 2008 7:27am
Quoting Warren Forex
Being in the 1% category I am qualified to answer to this post. Please excuse me for not being more humble however when your records warrant calling yourself a winning trader, so be it.

Any FX trader like myself who generates returns of 20% plus a month can only do so if he/she has all the tools.

As a matter of shared information here is what you need to get into the 1% category.

(1) Maturity (No Fear ! No Greed ! Healthy Ego !)

(2) Excellent Fundamental Knowledge (Economic and Geopolitical)

(3) Good Technical Knowledge(Making good entry and knowing where to exit)

(4) Trade With The Trend (Know what the Trend Is and the time frame)

(5) Use Proper Money Management (Trade no more than 20% of Capital)

(6) The Market is ALWAYS right short term so understand that.

(7) Do Not Over Trade (Have a Trade Plan)

(8) Plan the Trade and Trade the Plan

(9) Keep learning, reading and investing the time and make your own decisions as it is your money or others if you trade under a "LPOA"

Have a Great Sunday and all feedback is welcome !


Bruce
Great post Bruce, I don't know if I am in the 1% like you, but I have been increasing my account by 5% to 10% per trading day for about 2 years now.

The only thing I could add to Bruce's great post is to say how important that rule #1 is, in particular not being "greedy"...that was my big problem, and I did not become a consistent trader until I got a handle on it.

Cheers

Mike
  • #9
  • Apr 6, 2008 9:53am Apr 6, 2008 9:53am
Thanks, Treva. Splitting the position sizing function and the trading makes a lot of sense. I also see that complete isolation from the money manager is very important, too, so the emotional concerns do not throw off their focus.

Now if I could just get the star trader to slow down enough to communicate the trades to me before pips won are lost...

If it were only possible to automate the trader's signal generation right to the position sizing manager's live trading platform... does any broker allow for this?
  • #10
  • Apr 6, 2008 11:05am Apr 6, 2008 11:05am
I spend many years looking for good mentor to trade the forex. And mentor for trading euro/usd. I find very good mentor. Best teachings I learn are risk managments and price action. These are very good for me. Very good for all trader to learn, best is risk managment. Not all trades will win it canot be done. With good risk managments I loose less money on bad trading and make more money on good tradings. I say star trader are trader with good risk methods. Find good star trader mentor and you will be happy like me!
  • #11
  • Apr 6, 2008 11:14am Apr 6, 2008 11:14am
This guy funds and manages "star traders":

http://www.forexfactory.com/member.php?u=24855

About dominicanosrus: I'm involved in the screening of traders of different styles for an institution who allocates capital to money managers. I started in this business with a preference for scalpers, but due to the limited liquidity that's available instantaneously in this market, I've grown fond of other trading styles as well.
  • #12
  • Apr 6, 2008 5:10pm Apr 6, 2008 5:10pm
Quoting usdivers
Great post Bruce, I don't know if I am in the 1% like you, but I have been increasing my account by 5% to 10% per trading day for about 2 years now.

The only thing I could add to Bruce's great post is to say how important that rule #1 is, in particular not being "greedy"...that was my big problem, and I did not become a consistent trader until I got a handle on it.

Cheers

Mike

Thats pretty impressive. Lets see: Being conservative if you started with $1000 account two years ago and made say 200 trades per year and made the minimum of 5% per day you now have $299 033 351 248, congratulations

Kateeus
  • #13
  • Apr 6, 2008 5:47pm Apr 6, 2008 5:47pm
Quoting kateeus
Thats pretty impressive. Lets see: Being conservative if you started with $1000 account two years ago and made say 200 trades per year and made the minimum of 5% per day you now have $299 033 351 248, congratulations

Kateeus
That's nothing! I've been making 15% a day for the last 5 years and now I've got right around $34,000,000,000,000,000,000,000,000,000,000,000.
  • #14
  • Apr 6, 2008 8:59pm Apr 6, 2008 8:59pm
Quoting Poocher
This guy funds and manages "star traders":

http://www.forexfactory.com/member.php?u=24855

About dominicanosrus: I'm involved in the screening of traders of different styles for an institution who allocates capital to money managers. I started in this business with a preference for scalpers, but due to the limited liquidity that's available instantaneously in this market, I've grown fond of other trading styles as well.
Hey Poocher; it has been a while! What have you been up to?
  • #15
  • Apr 6, 2008 9:07pm Apr 6, 2008 9:07pm
Tryin' to become a good enough trader to go to work for you some day:!...but don't hold your breath.
  • #16
  • Apr 6, 2008 11:10pm Apr 6, 2008 11:10pm
Quoting Poocher
Tryin' to become a good enough trader to go to work for you some day:!...but don't hold your breath.
LOL! So modest!
  • #17
  • Apr 6, 2008 11:11pm Apr 6, 2008 11:11pm
Quoting Warren Forex
I would like to send you my PDF file of 1502 FX trades that I did at PFG in Chicago during the period of October 2, 2007 and November 6, 2007.

The total net profit that I earned my client was $19,246.02 as the statements from PFG will show.

The amazing thing is that my first 693 FX trades were ALL winning ones.

Please count them if you like. Then you will see that this trading statement only contains the TRUTH !!!

I am looking for additional funds to manage. I have been trading since 2003 and started trading real funds during March 2006.

Thank you and Good FX trading.

Bruce
Just replied to your PM. For some strange reason, I get the feeling that we've spoken before.
  • #18
  • Apr 6, 2008 11:59pm Apr 6, 2008 11:59pm
  •  TrevA
  • | Joined Oct 2007 | Status: my brain has a mind of its own | 166 Posts
Quoting Lohr
Thanks, Treva. Splitting the position sizing function and the trading makes a lot of sense. I also see that complete isolation from the money manager is very important, too, so the emotional concerns do not throw off their focus.

Now if I could just get the star trader to slow down enough to communicate the trades to me before pips won are lost...

If it were only possible to automate the trader's signal generation right to the position sizing manager's live trading platform... does any broker allow for this?
This type of automation/workflow is very easy to do but would require a bit of programming.

Quite simply, the trader would enter tiny positions into Metatrader and an API would send the positions to the money manager. Really simple stuff to program actually.

TrevA
  • #19
  • Apr 7, 2008 12:00am Apr 7, 2008 12:00am
Quoting Warren Forex
I would like to send you my PDF file of 1502 FX trades that I did at PFG in Chicago during the period of October 2, 2007 and November 6, 2007.

The total net profit that I earned my client was $19,246.02 as the statements from PFG will show.

The amazing thing is that my first 693 FX trades were ALL winning ones.

Please count them if you like. Then you will see that this trading statement only contains the TRUTH !!!

I am looking for additional funds to manage. I have been trading since 2003 and started trading real funds during March 2006.

Thank you and Good FX trading.

Bruce
Bruce; from your PM now I realize that you and I have spoken in the past. There's just too much controversy over your name on the internet. Sorry. Good luck.
  • #20
  • Apr 7, 2008 2:50am Apr 7, 2008 2:50am
Quoting kateeus
Thats pretty impressive. Lets see: Being conservative if you started with $1000 account two years ago and made say 200 trades per year and made the minimum of 5% per day you now have $299 033 351 248, congratulations

Kateeus
I love the sarcasm on this site, and the people that love to knock people that are making money from forex. Just for the sake of the people that do read this, and are not morons....and got what Bruce and I were saying about not being greedy....once you get your account to a state where you are making great money per week....you don't keep compounding, you take your profit out each week.
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