How important is the advisors past trading performance — the “track record?
A. As all of the ads and prospectuses are required to state, past performance is not indicative of future results. An advisor who has performed well in the past may perform poorly in the future. And it is possible that someone who has performed poorly may begin to perform well. This not withstanding, in any endeavor some individuals are obviously better at what they do than others and a track record is at least an indication of past performance. In addition, a track record can provide other valuable information about an advisor’s experience, approach to trading, and amount of money under management. You’ll also want to note whether performance data included in the disclosure document refers to actual trading results or to “hypothetical” or “simulated” results. Make your own decision about whether to invest in an untested trading system that may be based solely on market hindsight.
A. As of the ads and prospectuses are required to state, past performance is not indicative of future results. An advisor who has performed well in the past may perform poorly in the future. And it is possible that someone who has performed poorly may begin to perform well. this not withstanding, in any endeavor some individuals are obviously better at what they do than others and a track record is at least an indication of past performance. In addition, a track record can provide other valuable information about an advisor’s experience approach to trading, and amount of money under management. You’ll also want to note whether performance data included in the disclosure document refers to actual trading results or to “hypothetical” or “simulated” results. Make your own decision about whether to invest in an untested trading system that may be based solely on market hindsight.
