SALT LAKE CITY, Feb. 10, 2017 /PRNewswire/ -- Maverick Trading, named the Best Proprietary Trading Firm in 2016, recently released its 2016 portfolio returns for both its Options and FX Divisions. Maverick discussed its portfolio returns in a private presentation to traders in each of its divisions. The firm's Options Division portfolio generated well in excess of 50 points of alpha. The firm's FX Division portfolio returned nearly 3,000 pips, handily exceeding its yearly goal of 2,400 pips.
Following a flat 2015, 2016 was a welcome, if average year for the markets, with the S&P 500 returning 9.5% and the NASDAQ Composite returning 7.5%, even though the year was fraught with three substantial corrections. Maverick Trading was happy to once again significantly outperform the broad market.
Jon Frohlich, Maverick's COO, commented on the firm's performance. "I'm proud to say that, once again, the firm's strong performance opens up huge opportunities to bring on new talent to the firm and to bolster the accounts of our existing traders."
Maverick's Head Trader and CEO, Robb Reinhold commented as well. "We were extremely pleased with our traders. As a whole, our traders were able to align their portfolios to the broad market trends and were able to profitably weather the market action around the Brexit vote and the [US Presidential] election."
Frohlich offered his appreciation of the firm's traders. "I've got to hand it to our traders. When the Brexit vote surprised the markets, our traders maintained their calm. We had the corporate office prepared to assist our traders in negotiating the market at that time, but it wasn't needed. We were literally staring at the phones waiting for them to ring and they never did. When we talked to traders afterward, the common theme was that while bullish positions were showing losses in the immediate days after Brexit, our traders had properly allocated the risk and were able to sit through the volatility. Also, their bearish positions were more than making up for the losses in their bullish positions. We had quite a few traders liquidating profitable bearish positions the week after Brexit and then keeping their previous bullish positions."
Reinhold continued, "Within two weeks the market was breaking to new highs, so we had traders make money on both sides of the market action without a lot of intensive position management. The common joke at the corporate office was that our traders obviously didn't need us around. We joked around, but felt good about it because we had proof that we had prepared our traders properly.
Over the course of the year, the firm's win/loss percentage came in at 56 percent, with the reward/risk ratio coming in at 1.24:1. These figures were in-line with the firm's historic performance.
When asked about Maverick's market outlook moving forward, Reinhold and Frohlich both agreed that there are indications that the markets could have a potentially parabolic move upward during the first six months of 2017.
Not to be outdone, Maverick's FX Division had cause to celebrate 2016 in equal measure. The firm's goal for its FX Division is 2,400 pips profit yearly. The FX division exceeded that goal by over 20 percent in 2016.
Frohlich expanded on the firm's FX Division. "Our FX traders definitely win the Risk Management Award this year. Our FX win/loss ratio for all of 2016 came in at 53.3%, which is a couple points lower than our historical average. Where our traders really shined was in sticking to their position sizing and stop losses.
"January through the end of June was a really excellent period for FX. When that happens, a trader runs the risk of thinking he's a superhero and can't be beaten. We're happy to say that our traders remained humble, because July through the end of September saw us stopped out of quite a few trades for small losses, but then we ramped back up in Q4. That really illustrated that our traders took the firm's risk management guidelines to heart and we couldn't ask for anything more."
Moving forward in 2017, Maverick Trading is hosting its Spring Traders Summit May 4-5 at the Chicago Board Options Exchange. Attendance is limited to member traders of the firm. Reinhold spoke to the purpose of the Summit, "There's a strong social aspect to our Traders Summits. Since all our traders are remote, it's a great opportunity for our traders to put faces to names. In addition to the advanced seminars our traders will attend, we'll have the opportunity to see the CBOE in action. We're all counting on having a great time in Chicago."
About Maverick Trading
Founded in 1997, Maverick Trading is a private proprietary trading firm, focused on position and swing trading options in equities and exchange traded funds, headquartered in Salt Lake City, Utah.
Additional information on Maverick Trading and proprietary trading can be found at www.mavericktrading.com.
Additional information on Maverick Trading's FX Division can be found at www.mavericktrading.com/fx.
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SOURCE Maverick Trading