How do you measure Trader Effectivness?

[jklondon]

Thoughts on this -

- what measures
- how do you get them
- how do you trade-off effectivnes of one trader vs the effectivness of the whole desks - i.e. combining books etc ..

any links to quality articles here also would be appreciated?

Cheers
JK

 

[Maviga]

The Heart

effectineness - Ability to achieve stated goals or objectives, judged in terms of both output and impact.

- what measures?- be concerned more about what they lose rather than what they win.Making a million is good, but how much did you give the market.The losses are the costs and the gains are the profit.Also look at consistency.You do not want a one night stand. So, if the cost/profit is above 1/3, generally, to me that trader is good.

-how do you get them? - the same way you get fish out of the water, you offer bait.

- how do you trade-off effectivnes of one trader vs the effectivness of the whole desks - i.e. combining books etc ..

- this one requires more wisdom.Watch Chicago Bulls without Jordan,france without Zidane, Brazil without Pele.You will see that their will to win surpuses their skill and that is what makes the difference - the heart

 

[ammo]

you know your effective when your acct is going up,ineffective when its going down,the big picture is your acct p/l ,its in black and white,not in your head.

 

[Trader333]

How do you measure Trader Effectivness?

In my view it is profit, nothing else matters


Paul

 

[the blades]

Paul,

I largely agree, but would you consider a fund manager who has grown his account by 15% when the market has risen 25% as "effective"?

UTB

 

[peto]

Paul,

I largely agree, but would you consider a fund manager who has grown his account by 15% when the market has risen 25% as "effective"?

UTB

Yes, if he can do the same trick when the market falls 25% !

 

[mikeeg]

FWIW, Alexander Elder makes reference to seeing how much you can take out of channels and after you have exited your trade, look back and see what the total channel was and then see what % you took in proportion.

Can't remember the exact criteria, but he suggests grading your trades into A, B and C so that you can evaluate the effectiveness of your trades afterwards.

Refer to his book, Come into My Trading Room.

 

[the blades]

Yes, if he can do the same trick when the market falls 25% !

so that's none of them then

UTB

 

[Profitaker]

The sharpe ratio works a treat !

 

[A Dashing Blade]

You factor in amount in the account, volatility of instruments traded, risk-free rate and er . . . a few other things

 

[chump]

GBP returned on capital / time /maximum drawdown