How to compare your strategy to a hedge fund.

[Arya Stark]

Hi everyone,

If you want to evaluate your strategy properly, use a strong LLM to calculate all the relevant metrics. Trust me - if it can calculate time dilation from the Schwarzschild metric near a black hole, it can compute your Sharpe ratio.

Risk-adjusted metrics and benchmark choice depend on the type of your strategy. For example, if it is market-neutral FX (like mine), it makes no sense to benchmark it like a long-only stock portfolio. The LLM needs to understand whether you are running trend-following, mean reversion, market-neutral etc. Show it and explain everythig.

Next, show it your daily returns - that gives much more statistical power + drawdown
. Monthly works too, but less accurate.

Make it calculate the fllowing:

• CAGR
• Sharpe ratio
• Sortino ratio
• Calmar ratio
• Beta
• Absolute alpha
• CAPM alpha
• Alpha t-stat

Important: the larger the data sample, the stronger the statistical confidence. Early metrics can look amazing simply because of a small sample size.

Below are my current figures. In my case, any comparison to a typical hedge fund is statistically limited, because my live sample is only 10 months old. For a meaningful comparison, you would ideally want 5+ years old.

 

[hayseed]

Below are my current figures. In my case, any comparison to a typical hedge fund is statistically limited, because my live sample is only 10 months old. For a meaningful comparison, you would ideally want 5+ years old.

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MIT2025....... what is that representative of...... the layout appears to be darwin like , but it's not a darwin ticker nor do those results match any darwin that i'm aware of....... perhaps it's your personal account with darwinex......

i see your posts on reddit and myfxbook...... but still can't figure it out...... is it myfxbook or something like that.....

those results seem to correlate very well your darwin ukc, with the exception of the obvious risk multiplier effect...... but MIT2025 does not show in your correlations and it should....... it should be highly correlated......

and if you don't mind, how did you load that in chaptgbt........ such as if i wanted to have mine compared in the same manner......thanks.......h

 

[hayseed]

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MIT2025....... what is that representative of......

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ok, figured it out....... mit2025 is your underlying strategy..... ukc is your risk adjusted darwin......h

 

[CryptoX]

Compare your forex strategy to a hedge fund by measuring risk-adjusted returns, drawdowns, consistency, and execution quality. Track performance over multiple market cycles, not just short wins. Evaluate position sizing, leverage control, and rules-based discipline. Review costs, slippage, and liquidity impact. Focus on repeatable processes and steady compounding rather than chasing outsized, volatile gains.