Tuesday, 21 October 2014
Last updated 5 min ago
Feb 22 2007 | 12:20pm ET
Mahwah, N.J.-based Stein Investment Management's Trading Edge Program, which trades only Standard & Poor’s 500 Index futures, was lights out in its first seven months in 2006, returning 179.85%. And the program, which currently manages $9 million in assets, picked up where it left off last year, returning 18.14% in January.
“I think the secret is that it is a combination of more than 20 uncorrelated mechanical trading systems, all of them of my own design” explains Boris Stein, SIM's president. “I take only the strongest buy or sell signals, and use some discretion.”
The S&P 500 Index futures program currently trades 80 e-mini contracts and employs a computer-based risk management system for adjusting the trade size depending on the equity in the accounts, most recent performance results of the employed mechanical systems and market volatility.
“We also use stop-loss orders and time stops,” says Stein. “We plan to add options for the purpose of hedging and are currently doing intensive research in this direction.”
The Trading Edge program charges 2% for management and 20% for performance with a $60,000 minimum investment requirement for managed accounts. Stein also mentioned that he might start to trade mini-Dow and mini-NASDAQ futures contracts once his assets under management approach the $100 million mark.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...