How to Attract a Capital Allocator and Manage Their Money

The sum total of all your trading activity will accumulate in your track record.

You can be successful and be making a great deal of money right now, but you still might not be a good fit for a particular allocator.

I know a few traders with 20+ years who cannot get big allocations in today’s environment b/c their results are too volatile.

These traders have their own models and have been trading the same asset class in mostly the same manner for 2 decades.

Allocators are looking for very low daily vol today. Think about that – they are not looking for 100%+ rates of return per year. The risk you need to get those returns is too great for today’s allocators. You need to temper where you are in your career with where you want to be in the business.

Ego is a poor trading mentor, but you might need validation in order to have any confidence. Why else would you have 6 monitors…to show your girlfriend and posture?

Your daily volatility will increase due to market forces as well as the relative strength of your attachment to your rules. You have to do your own simulations, backtesting, and research. This is an ongoing process. Markets will evolve – so will you, and your model will need to keep pace also.

And you thought that you can buy someone else’s trading rules and make a career?

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