2011 YE Review

The Good

– Finally received the risk allocation I was looking for after months of working as a full-time consultant for the firm. Although it was slightly smaller then I had hoped, it’s still enough at this juncture.

– Spending FAR less time reading & researching new trading strategies and focusing on executing my current strategies better. Earlier in the year I would be bogged down looking for more ‘edge’ despite my claims that risk management is far more important then entry systems. It’s hard to stop looking for that ‘holy grail’ of market timing systems and I still spend some occasional weekends testing new ideas but as a whole I’m more concerned with executing properly then a new ‘edge’.

The Bad

– It’s been a tough year return wise, I was caught at maximum exposure during the July/August swoon and spent the rest of the year fighting back. I ended the year down 2%. Being down is a part of the business, what makes the pain acute is that the draw down occured almost immediately after a boost in allocation, so it’s a hit on confidence. EDIT: Down 2% from May till the end of the year. The prior periods returns were much better, i.e. positive, however the structure was different when I received my increased allocation. Part of the reason I even received an increased allocation was due to good performance however it’s not comparing apples to bananas so I look at it as a separate equity curve.

– Without going into too much detail, the firm also renegotiated the payout structure which was one of the most advantageous perks of my current shop. It’s not onerous but not as good as it was previously.

The Ugly

– Our firm let go a few traders this year and it serves as a reminder how fickle and difficult this business is.

Not much to say going into 2012, performance going into November and December was far better and more like normal. I’ve already begun increasing exposure from low levels in August and hoping for no crazy dislocation, correlation spikes, etc. I have no clue what will happen in the market or any predictions. Just trying to spend another day above ground šŸ™‚

~ by largecaptrader on January 3, 2012.

One Response to “2011 YE Review”

  1. […] It’s that time of year again and I’ll keep the structure similar to 2011: […]

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