Barclayhedge Forex Trader's Annual Return: 7.29%!

http://www.barclayhedge.com/research.../sub/curr.html

If this is what the pros make, what chance does the little guy have? I doubt that 20% per year over time is sustainable, or?

The more money under management the less return you can have and still keep the lights on is good enough.
At this level your job as a fund manager is to keep your investors happy and attract OPM.

This would be true for stocks, however, within the right forex banking networks you could easily have access to enough liquidity trade 100-200 million USD clips intra-day, which means the fund could be the same size.

In other words, if it could be done it would be done.

If you try to make too much from too little, you will lose the lot. It's just a matter of time.

Imagine the timid sums we'd be trading if we aimed for a "mere" 10% per year. How boring would that be? Margin calls are much more exciting.

I'm delighted when I average the humdrum return of 0.1% per day. (Actually, this is better than Warren Buffett.) I only trade for a hour or two around the NY open. (I will not be consumed by this business. Only an idiot would exchange life, health and family for a few lousy bucks.) I trade with very little leverage, and risk foreign capital as far as possible.

looking at draw down level and small returns, it's not really appealing.

Managers makes 30% a years max , thats the highest one for them to be frank . But being a small trader you have to risk alot to make a bigger money then follow their principle , but if u follow 30% a year from now,u wont be near them .

Haven't heard of James Harris Simons have you? Please check your facts before posting.

Also if you read market wizards many of the fund managers there make more than just 30% a year consistently for years.

self limiting beliefs... why base your potential on what some fund manager achieves... surely it should be based on your trading record?

By the way these guys are nothing to do with Barclays Bank, not sure why their returns should be setting the bar?

Thinking point for you:

Fund manager bonuses.

Returns are NET of costs. 7% ish per year is more than enough to attract insititutional investors.

Unless your remuneration is based highly on assets under management (which is very unlikely given it's a money market fund) - If your fund is making 20%+ per year, your staff will demand higher pay or move to another bank/fund management house.

Welcome to the City.

LD