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Attracting Investor Capital

  • #1
  • First Post: Mar 23, 2010 5:17pm Mar 23, 2010 5:17pm
Hello,

I'n the future I'd be interested in trading investor funds. What monthly ROR % and average monthly Drawdown is generally appealing/acceptable for serious investors. Also any other information you would think useful.

Thanks
Annoying Precision
  • #2
  • Mar 23, 2010 6:21pm Mar 23, 2010 6:21pm
the best way to attract investor capital is to dress up like female investor capital, and blink your eyes at the investor capital. the investor capital will then drop its jaw to the floor, and co me running at you (the now female investor capital). it works for bugs bunny every time.
  • #3
  • Mar 23, 2010 6:27pm Mar 23, 2010 6:27pm
forex factory voucher system.....

Quoting blacksun1
the best way to attract investor capital is to dress up like female investor capital, and blink your eyes at the investor capital. the investor capital will then drop its jaw to the floor, and co me running at you (the now female investor capital). it works for bugs bunny every time.
Annoying Precision
  • #4
  • Mar 23, 2010 6:37pm Mar 23, 2010 6:37pm
Quoting erikte279
forex factory voucher system.....
lol i just wanted to see your reaction. but as to your actual question........

Quoting erikte279
Hello,

I'n the future I'd be interested in trading investor funds. What monthly ROR % and average monthly Drawdown is generally appealing/acceptable for serious investors. Also any other information you would think useful.

Thanks

first off, good luck to you dude. its a tough thing to trade other people's money. first word of advice: never trade the money of someone you know, especially friends and family. this always leads to pain.

the expected monthly rate of return is going to be different from person to person, but i say 5% is a good number. some investors will be happy with 15% a year, others will be demanding 150%. it's really up to your trading style and the rules you have in place governing client payouts. for example, if you lose someone's retirement fund, are you going to pay them back anything etc. if you are afraid of that kind of a thing, risk less.

as for drawdown, it's not neccesaarily appealing or unappealing, because most of the time, the investors simply dont see it. unless you are holding a trade for longer than two weeks, they arent really going to notice any drawdown on a monthly statement. if you do bi-monthly statements and hold positions for a longer period of time, drawdown will be a concern. as for the acceptable amount, base it on one fifth of your expected return as a starting point. if you are expecting 10% a month, try to keep your drawdown below 2% for example.

again, i wish you the best of luck because being a manager can be one of the most emotionally draining things you will experience. it's a totally different ballpark when other people are relying on your trading skills.


edit: also, i noticed on your profile that you are affiliated with the military. what branch?
  • #5
  • Mar 23, 2010 6:51pm Mar 23, 2010 6:51pm
Thanks,

My trading style is stress free and I only take a+ setups at this point with a high % of wins, slow and steady wins the race. Army 4 years, ets in 7 days

Quoting blacksun1
lol i just wanted to see your reaction. but as to your actual question........




first off, good luck to you dude. its a tough thing to trade other people's money. first word of advice: never trade the money of someone you know, especially friends and family. this always leads to pain.

the expected monthly rate of return is going to be different from person to person, but i say 5% is a good number. some investors will be happy with 15% a year, others will be demanding 150%. it's really up to your trading style and the rules you have in...
Annoying Precision
  • #6
  • Mar 23, 2010 7:12pm Mar 23, 2010 7:12pm
Why freaking bother trading john and jane doe's money when you can just as easily trade your own. The joy of trading is not having clients or employees.
  • #7
  • Mar 23, 2010 7:18pm Mar 23, 2010 7:18pm
7% x 50,000 ( my money ) x 1 month or 7 % x 20,000,000........20-30% profit fee....

When my account grows large enough I wont have a reason to manage others. Until then...

Quoting endroute
Why freaking bother trading john and jane doe's money when you can just as easily trade your own. The joy of trading is not having clients or employees.
Annoying Precision
  • #8
  • Mar 23, 2010 11:28pm Mar 23, 2010 11:28pm
A little food for thought - might be a tad out-of-date - see attached file.
Attached File(s)
File Type: pdf How-to-become-a-CTA.pdf   423 KB | 920 downloads
"If The Fool persists in his Folly he will become wise." - William Blake
  • #9
  • Mar 24, 2010 12:01am Mar 24, 2010 12:01am
appreciate it

Quoting The Fool
A little food for thought - might be a tad out-of-date - see attached file.
Annoying Precision
  • #10
  • Mar 24, 2010 2:15am Mar 24, 2010 2:15am
Quoting erikte279
...
When my account grows large enough I wont have a reason to manage others. Until then...
are u sure account growth is your main purpose or is it something else?
  • #11
  • Mar 24, 2010 2:26am Mar 24, 2010 2:26am
pretty much.....with the money i make from trading this freaking forex thing i'll be able to approach the bank with sufficient upfront capital (about 3-5 m) to start my main business which is alternative energy based and has MASSIVE potential and an ROR that trading couldnt hold a burned down candle to, thats where my real talents lay, this his but an obstacale/ stepping stone.

I love you forex baby u know i love you dont get mad now. haha

Quoting supremeChaos
are u sure account growth is your main purpose or is it something else?
Annoying Precision
  • #12
  • Mar 24, 2010 2:50am Mar 24, 2010 2:50am
I am a professional trader. My job is to take risk. If I manage my losses and let my profits run I will be successful.
Because I am a professional trader, I will forgive myself easily for making mistakes and move on to new opportunities.
I feel great that I have the discipline to control my emotions and the patience required to be a professional trader.
I am a professional trader and will make $1,000,000 by year end. I will achieve this by following my trading plan, setting achievable goals, and controlling my emotions.
I am confident and believe in my own ability to be consistently profitable because I AM a professional trader.
Annoying Precision
  • #13
  • Mar 24, 2010 2:51am Mar 24, 2010 2:51am
We TRADE TO LIVE. We are NOT like others who LIVE TO TRADE.
We know that our Health is ALWAYS more important than our wealth.
We know trading is NOT a "Get Rich Quick Scheme".
We know trading is a serious business and WE treat our trading as a SERIOUS BUSINESS
We understand we have, like any other profession, to put in the thousands of hours studying, learning and practicing our methods and techniques.
We understand there is NO SHORTCUT to becoming successful and profitable traders.
We understand that successful and profitable trading is 95% psychology and 5% technical skill. We know who and what we have to control.
We need PATIENCE to wait for and "SEE" opportunities
We need DISCIPLINE to act and trade on such opportunities
We are PLANNERS – We always PLAN each and every trade and then Trade the PLAN without exception.
We are BELIEVERS. We believe in ourselves and our PLAN.
We are happy, content and satisfied with where we are in our trading career.
We believe in the Holy Grail. We know what the Holy Grail is. We have found the Holy Grail and our search for trading enlightenment is over.
We can only take what the market gives us - we do "NOT" force the market.
We respect PRICE and the Market.
We understand that PRICE is Lord, King, Queen and Country.
We ACCEPT losses as the cost of doing business
We are PROFESSIONALS and PROFESSIONALS look for a reason NOT to take a trade
We are NOT Amateurs. Amateurs manage money by taking RISK. PROFESSIONALS manage RISK by taking money. Check!
Annoying Precision
  • #14
  • Mar 24, 2010 3:26am Mar 24, 2010 3:26am
  • #15
  • Mar 24, 2010 7:25pm Mar 24, 2010 7:25pm
Quoting erikte279
We are PROFESSIONALS....
There will be a test.

http://www.nfa.futures.org/NFA-regis...uirements.HTML

http://www.nfa.futures.org/NFA-regis...O-Series34.pdf
"If The Fool persists in his Folly he will become wise." - William Blake
  • #16
  • Mar 24, 2010 7:48pm Mar 24, 2010 7:48pm
My name is GLADIATOR! lol
  • #17
  • Mar 24, 2010 7:56pm Mar 24, 2010 7:56pm
Jeesh....I wasnt aware .Will be getting on this asap.

Is this only if your going to open your own hedge fund, to trade for somone elses, both?

Quoting The Fool
There will be a test.

http://www.nfa.futures.org/NFA-regis...uirements.HTML

http://www.nfa.futures.org/NFA-regis...O-Series34.pdf
Annoying Precision
  • #18
  • Mar 24, 2010 8:00pm Mar 24, 2010 8:00pm
I am erikoinadas the 3rd, born of pure lineage, conqueor of bla bla hehe

Quoting Deusomega
My name is GLADIATOR! lol
Annoying Precision
  • #19
  • Mar 24, 2010 8:15pm Mar 24, 2010 8:15pm
Quoting erikte279
Jeesh....I wasnt aware .Will be getting on this asap.

Is this only if your going to open your own hedge fund, to trade for somone elses, both?
Hey amigo,

I am just learning about it myself. Do your own due diligence but I think you can fly under the NFA radar if you are trading for <15 clients. <15 not enough, I'm goin nationwide.

Currently, I think you can set up "Money Manager" accounts at some brokers simply by flashing the right amount of cash. Regulations are likely to get tighter, though. When I talked to CitiFxPro rep yesterday he said they looked for a solid verifiable 2-year trading history OR registration as a CTA.

OK fine I can pass the test. I think I will do it sooner than later - before they have a chance to change that, too. Currently you can self-register for the Series 3 and/or any of the other registrations you might like to get.

Good Luck and may the best man be the first to $100 mio in the bank.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #20
  • Mar 24, 2010 8:28pm Mar 24, 2010 8:28pm
Quoting The Fool
Do your own due diligence but I think you can fly under the NFA radar if you are trading for <15 clients.
<15 clients and/or a maximum of $250000 in managed funds, whichever applies.
AFAIK.
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