What is the most appropriate benchmark for me to use?
There is no single benchmark that is appropriate for all transactions. An effective trader will review their activity against a number of different measures to better understand the impact of trading on overall investment strategy and performance. In addition traders acting for different portfolio managers different funds will need to take account of their particular trading objectives and concerns. If a single benchmark was sufficient then the process of analysis, and ultimately of trading itself, would become purely an algorithmic exercise with no need for human intervention. GSCS believes that trading is as much an art form as a science. Application of mathematical analysis may assist traders but it will never replace them.
