% Return on Turnover

The sport of kings.
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Morbius
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Euler wrote:
Thu Oct 22, 2020 11:37 am
I've never really concerned myself with return on turnover, though I do measure it. On pre-off footy I'll use large stakes but can only ever return small amounts unless the market is spectacular. So I'm more concerned about the risk I'm taking. If there is little risk, I'll happily use much large stakes and accept a lower return.

But the return on turnover varies wildily between markets and strategies. There is no one answer that is correct and everybody will be wildly different. I don't think there is much you can infer from that.

Thanks Peter....at last a post with detail but there was more to infer from your post than what seems apparent. Your post indicates that you take volatility seriously which I know your philosophy is geared around it. The level of risk is connected to volatility and position sizing so dollar volatility plays a part but these metrics differ in a strategy to strategy basis and even a market to market basis as you well know. However a return on turnover is a derivative of these components and so in the absence of further data, you can only take a piece of the puzzle and back engineer, as for what Derek said about walking before you can run.....well let's just say I walk very well in that regard and sometimes in financial markets one has to do the opposite of what is obvious and work not from the beginning but from further down the line
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Morbius
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That's me done with this thread as clearly the "conversation" didn't go down the expected pathway :D
spreadbetting
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Only a matter of time before you start asking for everyone's star signs ;)
Jukebox
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spreadbetting wrote:
Thu Oct 22, 2020 3:07 pm
Only a matter of time before you start asking for everyone's star signs ;)
LOL It depends!
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Kai
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I think OP is just gathering feedback to compare the numbers with his own strategy and approach, not specifically asking in order to copy what others are doing.

I don't measure these things since I already know my trading is woefully inefficient.
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Kai
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Morbius wrote:
Thu Oct 22, 2020 3:04 pm
That's me done with this thread as clearly the "conversation" didn't go down the expected pathway :D
Question wasn't specific enough. Can more or less gauge how people trade if you read enough posts, people do talk about their trading more than they say.

I'm crap with numbers but you can probably work out sensible healthy numbers without needing feedback from others.
Kai wrote:
Thu Oct 22, 2020 4:30 pm
I don't measure these things since I already know my trading is woefully inefficient.
You probably already know what I meant, but by inefficient I mean for market A I should be applying strategy A but I'll too often apply strategy B instead, just because it's easier for me to execute and smooths out the variance, that's the trade-off that I am happy to take.

Even though it would be more prudent patiently sitting on a good valuable position and not give it away on the cheap, we all love a bit of instant gratification in our trading. A bit like, we should all be eating healthy because it's good for us long term, but it doesn't taste as good as junk food :)

So it may make trading that much easier to execute and handle better mentally, but it's far from efficient. Neither is skipping the more difficult markets just because there's a decent chance of incurring a loss.
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The Silk Run
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Lexical semantics angel !!!
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