How to manage Funds?

Discussions about Money Management and Risk Control.
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oem7110
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How to manage Funds?

Post by oem7110 » Sat Jun 19, 2010 7:53 pm

If a Fund Manager does not know the coming market movement, and need to manage Funds with a hugh dollar, they will not able to sell all capitals at once. will it be the usual situation for every fund manager? and how do they face this issue everyday?
Thanks in advance for any suggestions
Eric

sluggo
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Post by sluggo » Sun Jun 20, 2010 2:33 pm

Google will help you find fund managers "Michael H. Buek" and "Ken Heebner". Buek's fund is about USD 90 000 000 000 and Heebner's fund is about USD 3 000 000 000. One of them is a buy-and-hold investor, the other is an active trader. There are many approaches to speculation and investing, even among traders with huge amounts of capital.

AFJ Garner
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Post by AFJ Garner » Sun Jun 20, 2010 4:21 pm

The screenshots below represent tests based on precisely the same system with almost precisely the same settings, stepping starting capital from $1m to $500m by increments of $50m. Not very representative of the way a real life fund would grow – no provisions for the fits and starts, the frequent and disruptive withdrawals and additions of capital but the tests will suffice for the purpose intended.

The only difference between the two test runs is that for one no volume constraints were used. The fund was permitted to buy many times the actual daily volume of contracts for the relevant month and the relevant market.

The other test run set the Global Parameter “Max Percent Volume Per Tradeâ€
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No Vol Limit.PNG
No Vol Limit.PNG (45.57 KiB) Viewed 2900 times
W Vol Limit.PNG
W Vol Limit.PNG (60.96 KiB) Viewed 2900 times

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