For comparison purposes, we have collected third party information which tracks hedge funds and commodity trading advisors by style, type, and returns. We then used their data and compared it to our historical and simulated net returns, to benchmark TRADINGXYZ’s returns.
The third party indices currently track more than 400 Systematic Traders, more than 100 Discretionary Traders, and in between 300 and 600 Long/Short Equity Hedge Funds. The indices are defined as:
"SYSTEMATIC TRADERS INDEX"
An equal weighted composite of managed programs whose approach is at least 95% systematic.
"DISCRETIONARY TRADERS INDEX"
An equal weighted composite of managed programs whose approach is at least 65% discretionary or judgmental.
"HEDGE FUNDS - LONG / SHORT EQUITY"
This directional strategy involves equity-oriented investing on both the long and short sides of the market. The objective is not to be market neutral. Managers have the ability to shift from value to growth, from small to medium to large capitalization stocks, and from a net long position to a net short position. Managers may use futures and options to hedge. The focus may be regional or sector specific.
Annual Percentage Returns
TradingXYZ Historical /
Simulated Net Returns
|3.5 % Risk per Trade||57.2||66.2||72.3||36.2||45.3||44.5||21.1||28.9||54.4||79.9||49.1||28.4||7.8|
|2.0 % Risk per Trade||28.1||31.9||35.0||18.7||22.3||22.3||10.8||14.7||27.2||39.2||24.0||13.9||4.6|
|1.5 % Risk per Trade||20.1||22.5||24.5||13.8||16.5||16.2||8.5||11.2||19.4||27.5||17.6||11.1||3.7|
|Systematic Traders Index||(3.71)||9.89||2.99||12.09||8.71||0.54||0.95||2.10||8.72||18.16||(3.38)||7.82||(3.74)|
|Discretionary Traders Index||3.22||2.14||(0.11)||11.08||5.15||8.69||7.55||7.62||6.23||12.17||1.89||5.79||3.07|
|Hedge Funds - Long / Short Equity||46.71||16.38||4.94||(1.78)||15.82||6.55||11.46||8.03||7.93||(11.87)||14.42||7.3||(4.52)|
|S&P 500 Cash||19.53||(10.14)||(13.04)||(23.37)||26.38||8.99||3.00||13.62||3.53||(38.49)||23.45||12.78||(0.003)|