SALT LAKE CITY, UT – Maverick Trading, named the Best Proprietary Trading Firm in 2016, recently released its 2016 portfolio returns for both its Options an FX Divisions. Maverick released 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 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.
Maverick’s Head Trader and CEO, Robb Reinhold spoke of the firm’s 2016 performance. “As a firm, we ended 2015 and started off 2016 net short in our portfolios, so January’s market action was a welcome surprise. As the market bottomed and strength developed in February, we made the shift to net long. As the market action in April hit 2100 and rolled over, we thought the markets were going to be range bound as they were in much of 2015. This led the firm as a whole to a largely delta neutral position when the Brexit vote surprised everyone.”
Jon Frohlich, COO of Maverick Trading, broke in to offer 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 starting 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 Tuesday and Wednesday 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.
“From the beginning of August, we were largely delta neutral in our portfolios in short term trades, waiting for a retest of the 2175 top in the new range. This was a period of small gains, but with the market breaking out of what was essentially an 18-month base, our mid- to long-term outlook was another 12 to 18 month bull market. We really wanted to see a pullback so we could get convincingly long. Thankfully, the [US Presidential] election provided us with that and we maintained a bullish outlook through the rest of the year.”
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. Frohlich 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.
Media Contact: Jon Frohlich; 801-652-7180; firstname.lastname@example.org