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I am writing a new Market Wizards book with a focus on traders with great track records who are unknown or relatively unknown. The interviews I have done so far have been with independent traders as opposed to traders managing assets. I am looking for additional traders that fit this description.

I am often asked what criteria I look for in deciding whom to interview. There is no formulaic answer, but the following guidelines should provide a reasonable idea of traders that would be a fit:

1.    A long track record—preferably 10 years or longer. The longer, the better. If the track record is truly exceptional, I would consider someone with a record as short as seven years.

2.    I am looking for traders with either:

o  very high average annual compounded return, or

o  very high return/risk (I don’t use the Sharpe ratio, but since that is metric everyone is familiar with, traders with Sharpe ratios above 2.0 would potentially qualify as high return/risk).

3.    Benchmarks are relevant. So a long-only equity trader with an average annual compounded return of 30% in a market that has a contemporaneous return of 22% might not be of interest, whereas a futures trader with an average annual compounded return of 25% during a period when CTAs have a 0% return would be of interest.

4.    Return/risk is a very important consideration. So assuming same market and period of trading, a trader with a 25% average annual compounded return and a 2.5 Sharpe ratio would likely be of interest, whereas a trader with a 50% average annual compounded return and a Sharpe ratio of 0.7 would probably not be.

5.    I am not interested in traders who trade in illiquid markets or illiquid strategies.

6.    I am not interested in traders whose methodology involves assuming tail risk (e.g., sellers of out-of-the-money options).

7.    The domicile country of the trader is not a factor as long as the market traded is a liquid one.

If you believe you fit the above criteria for a Market Wizards interview candidate or know someone who does, please email me directly

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