AxiSelect November Performance Report

It’s been a milestone month as we have finally, after many months of system testing, taken the program out to a broader audience of traders. It is from this group that we will find the next generation of superstar trader.

The core portfolio presently consists of 2 professional managers and 14 developing managers/traders/signal providers. The professional managers continue to do what they do best, providing very steady returns of around 1% per month with manageable drawdown profiles.

The stars of the program have been 2 of the developing managers:

  • EH Capital has been a stand-out consistent performer for the last 6 months. He’s had 2 losing months with a biggest drawdown of 0.55%. His winning months have been consistently around 1.5%. His strategy has been flexible to suit the markets and his risk management has been flawless. His assets under management (AUM) have increased significantly with the Axi Select proprietary allocation increasing to $250,000 and a significant allocation from a boutique investment firm in HK. He has also been offered an exciting role trading for a big international institution. We will certainly miss his enthusiasm (and profitability) should he decide to accept this role, but we will send him off with glowing references.
  • LH Trading is new to the program and he comes to the Axi Select program with a very compelling track record. His performance so far is living up to the hype, with a return of almost 2.5% in November. We have already increased his allocation to $250,000. His goal is to build a $2 billion hedge fund and if he keeps going like he is, he’ll be there before Christmas (joke ☺).

Our prop traders have been less impressive so far with the majority sitting under water. There have been some very significant moves over the last few months but unfortunately we didn’t have any USD-bulls amongst our team. The ability to maximise profits when right, and minimise losses when wrong, is the key to being a successful prop trader. We know there are some out there and we will find them.

Amongst the signal providers the ex-interbank traders have unsurprisingly performed best. They may not have the energy that they once had to manage positions on a 24/7 basis, but they do recognise an opportunity when they see one. The best signal providers will get 65%+ of their trades correct with a risk-reward ratio of at least 1:1.5.

Footnote: Stick to what you know! The professional and the aspiring managers all have strict risk management and trade-strategy regimes which are tried and tested and which they adhere to religiously. This is why they perform so consistently. It is glaringly obvious after studying 7 months of data that prop traders and signal providers would do well to adopt similar guidelines. The number of times where generally good performance has been marred by one-off emotive trades in Gold, Oil, the S&P or some exotic currency cross is simply staggering. Stick to what you know!