MEXFrom trading losses, being fired, to20There was no loss within the year, and he made nearly a profit3Billion US dollars

The trading world never lacks legends. Today, let's get to know a truly profitable super trader, Larry

·

Benedict（

Larry Benedict

）. In its investment activities

20

Over the years, Larry has never experienced any losses in a single year. A San Francisco company named

Rothstein,Kass & Company

Independent third-party company, from

2004

Year to

2012

Legally audited Benedict's fund in

Banyan Capital

Performance. They confirmed that Benedict and his team jointly created

274,572,167

Income in US dollars. Now he is

The Opportunistic Trader

The CEO of.

1、 Being fired on the first day of work at the Chicago Stock Exchange

Benedict became a trader because of his girlfriend. His girlfriend's father is a soybean trader on the New York Stock Exchange, and her house is the largest he has ever seen in his life. This made him determined to become a trader and want to make big money.
But his career did not go smoothly, as1984He graduated and entered Chicago inoptionThe exchange was a hall trader, but due to lack of experience, on his first day of work, he was fired by the boss for not accurately recording trading orders and delivering them in a timely manner.
But his tenacious will and desire to become a professional trader made Benedict shamelessly return to the exchange the next day, where he eventually learned his first trading philosophy:"Profit from small profits until you have a large amount of cash"。

2、 Brilliant performance, unmatched by others

1989In, Benedict was employed bySLKThe company becomes itsXMLIndex Options (US Stock Exchange)20Only blue chip traders have officially started their career as professional traders.
In its initial13In his year long trading career, his worst trading record was a one month loss3.5%; As of2011In years, he has been continuously20Realize profitability annually, only2011Annual loss0.6%. since2004Since the beginning of the year, the average annual net return of the funds he manages has been11.5%(The total return rate is19.3%)The annual volatility is5.8%The maximum withdrawal rate is less than5%。
The Sharpe ratio of Benedict is1.5(Used to measure the average rate of return that can be obtained per unit of risk)This number is astonishingly high. Benedict does not allow family or friends to invest in his fund. His family is2008During the global financial crisis in, a lot of money was lost, but the fund managed by Benedict rose against the trend that year14%But this did not change his idea of not allowing his family to participate in his investment, as he believed it would distract his attention.

3、 The Essence of Winning the Way

Benedict's trading method is easy to describe. He utilizes the correlation between markets to profit from hundreds of transactions, but for private investors, this is almost impossible to achieve. He relies on personal experience, accumulated over decades of failure. Everything is random, not formulaic.
The essence of Benedict's trading method is that when observing price changes in one market, he simultaneously focuses on price changes in other markets, rather than looking at them separately. Markets are interconnected, but these correlations can sometimes undergo significant changes over time. Sometimes the direction of price changes for S&P and bonds is the same, while other times it is the opposite. Sometimes S&P will follow suitcrude oilPrices fluctuate, and sometimes the stock market has nothing to do with crude oil prices.
Benedict is keen on observing the interrelationships within the market, not only observing the relationships between daily charts, but also the relationships between minute charts. At any point in time, price fluctuations in the market can have a significant impact (positive or negative) on the price fluctuations of one or several other markets.
Understanding the interrelationships between current markets is only the beginning. When a market price related to it changes, there is no trading manual that tells you how to trade. Sometimes, the resulting impact is a lag effect, while other times, the market's inability to respond as expected may indicate a strengthening or weakening of internal market relationships. Usually refers to trading in two mutually influential markets. If there is a positive correlation between two markets, Larry·Benedict may short market products that appear to be overpriced and hedge against related markets by taking long positions. The timing of this paired long short position buying and selling may not necessarily occur simultaneously, depending on the position between the current price and expected price of each market product.
In short, Benedict's consideration of market correlation as a key factor is just the beginning. The selection and implementation of true transactions are very flexible, relying on multiple considerations and past experience. The entire process is human made, not systematic.
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