Making 100%-200% return a year from trading

We all heard the anecdote of making a 200% annual return if you are trading on a small capital(25K-500K), given that you are not a market mover and have more flexibility to move your capital by not worrying about Liquidity.

Hedge fund professionals, do you think that this is feasible?

8 Comments
 

Is it feasible to project this? No… who would be the sucker contributing the alpha dollars so consistently? 

 

In general, with smaller capital, doable. But not sure if this is a suitable approach in hedge funds, particularly MM. In other words, if there are a lot of constraints and risk limit around your book, very unlikely to achieve such results. 

 

It was a huge pet peeve of mine hearing kids in college talk about their 100%+ returns. They would always brag how investing is so easy and so forth yet all they invested was $200. Now they all have mediocre jobs. Don't be one of them. 

Numbers like that are totally unrealistic unless you were to run insane risk which obviously will only go well for a short time period. Also with that small capital you're not even considering leverage or hedging strategies. 

 
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