What is the agreement between a trader and an investor?

Hi, dudes:

Hope all you trading well. I receive an agreement from an invester from Cayman island. I am not sure how to respond to it as I don't wanna share my strategy to him and the rewarding seems not so good. However, I do hope to trade full time for I have lost interest in my day job. Thanks!


in the email:

Your statements are looking good. Your strategy seems solid and it’s great that you are focused on risk management and getting your leverage down. I would like you to see you trading full time in due course and so for now I would like you to join us part-time or in any fashion that you choose on a new proprietary fund that I am setting up.

In summary :

· You will have to learn to use interactive brokers. This is simple and Alex can help you.
· We want to try and utilize your strategy on a 24 hour trading basis, so that Alex can utilize your strategy whilst you are sleeping and vice-versa, creating a 2hr time-zone model.
You should work with Alex to facilitate this.
· Alex is really our options specialist and will also be able to teach you a lot in this area in due course.
· We will require you to add your funds to the account, and I will then triple the amount of your funding. IE : You place $70,000 on account and I will add a further $140,000 and this will be yours to trade with as you please, but for the time being only Oil futures and Currency. Just keep going as you are, 4% a month continuously with minimum risk is a good performance, anything more than that is a bonus.
· I am just requiring that you add in your own funds from a risk management perspective. We require it with all our traders now, as people will always keep focused on risk management when their own money is involved.
· Just like now you will receive 100% of all profit made on your funds plus we will pay you a 10 percent bonus every quarter (3 months) on profits made on the rest of the fund. A discretionary annual bonus will also be paid.
· Every 3 months providing that the fund is performing successfully I will increase the value of the fund by 30-50% as we progress with confidence.

From the Cayman Islands?
Are you sure it's not from Nigeria?

Same thought

I got connected through linkedin.com

So I think the resume should not be fake.

and Also talked via Skype. it shows cayman island

it is a SCAM Yunben...
Forget about it.
The more you keep talking to them and "making sure" it is ok, the more info
you give out and more ways they find to rip you off.


J.
.

why is he asking for first deposit from u? when ur strategy is solid and u are consistent performer.

sounds fishy

For verification ask:
1. Company details (which you can then do an independent check)
2. Since he connected through Skype, ask to see the office through the camera. You need to make your own conclusions if it looks like a trading office.....

P.S. Had a similar offer myself from a San Francisco company which was legitimate. I just didn't feel good risking other people's money. That kind of stress can affect your trading. Better off risking and earning my own money.

Becareful!

I agree. if you have to think about it this much, then its likely not a good idea.

小心别上当 This is almost surely a scam. The guy is probably only adding some familiar things in there like Interactive Brokers and Alex the options specialist to make it look genuine. Don't give them any delicate information.

If you still want to find out more; Make sure you verify the company and the people in Cayman island. Get evidence from various sources. Then still, even if they do exist, note that they can still run off with your money.

Yunben,
if you don't feel comfortable depositing your money with this broker in the Caymans you can always deposit it with me. Just sayin'.

this is Nigerian scam, pls stop talking to him, he will charm and confuse you. though am from Nigeria i will not be on forexfactory to see some people being scam be our jobless people. thanks, let me know if you have a question

Hi, dudes:

follow ups......

His email:

What I propose is that there will be a managed account owned by a cayman islands fund. You will simply deposit you money into the funds account, I will deposit 2-3 times that amount into the same account and the funds will then be allocated to Ben Yun’s trading account that I will set you up with IB. You will then simply trade from that account with all the money using the IB platform. You will have full control over the account to trade as you like, with the agreed products. I will simply trust you in terms of risk management.

However I will also have control over the account so that I can control the margin allocation and if say you make a big loss your trading access will be closed whilst we discuss and the reopen it etc.

It is almost identical to any proprietary trading system that is used by the large banks. The head of the desk will have access to allocate margin to the traders on the desk.

Let me know if you are OK with this and I will proceed. I will be setting it up as new fund and so will it cost me about $5,000 to set up the company and accounts up in the Cayman islands which I will pay. The cayman islands fund will be tax-free, your bonus’s and profit share etc can be paid into any bank account that your choose, it may even be possible to open you a Cayman account.
I also have some interested partners in the UK who may back you earlier too with extra capital if they are happy with your initial performance so we could be aiming to be trading with $1M collateral within 6 months if things go OK

Here is my reply:
I consulted with my friends in the financial industry. They advised this may not be good for my own capital safety as it is remoted. As I am not so urgent to become a full-time trader, I would like to wait a while until I get ready by early 2013.

If you feel satisfied with the performance of my strategy, I can work in your company for an intership program for a couple of months with my own fund. You can verify whether my past trading statements are real or not and whether the strategy is feasible. My strategy is a mechanical one. I just follow the signals and allocate the trading size on it based on the liquidity, volatility and currensy pair. As long as it works in the past 10 years, it surely will work in the future with certain margins allowed.

and his reply:

Unfortunately we don;t really do internships, and I trust that your statements are true anyway. I work on a relationship of Trust and Gut-Feeling, but for our own risk management perspective we do require our traders to put in their own collateral.
This is the best because one is less likely to be frivolous and lose one's own money, but I have had my fingers burnt before when we took on a guy with a fantastic 2 year record, gave him power of attorney over an account without him investing also, but because he didn't put his own money in he just changed his trading style, made silly frivolous trades and lost a lot of money.
The only reason we want you to put money in is so that you continue to be cautious and careful, apply the same risk controls that you already do and make the right decisions, and keep it more like a partnership.


I am seeing my lawyers later this week and I will see if there is any way that i can segregate your funds so that they stay within your own name but IB will accept them on our account.


Let me know what you think as I really do believe that you have great potential and if you can trade with us and keep the same track record then there is no reason why you can't be managing $1M plus in 12 months, and then you will be heading for the big league a lot faster than trading by yourself.


Let me know and I will speak with my lawyers to see if we can structure something to segregate your collateral.

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Anymore suggestion? Thanks

Don't walk away ... run

congatulations yunben, i think its a really good opportunity for you to take your trading to a higher level.
My little advice is that for any business between two parties the concerned parties should come to an agreement that protects their individual interests. However in your peculiar situation i believe that the following should be best for both:
1. Have the trading account/or bank account made in such a way that none of you can withdraw from the account without the signature of the other being a requirement from the bank/broker. On withdrawing any money you need to have both signatures (ie yours and the investor's) as a final requirement from the bank/broker.This protects both of your interests.

2. Get a lawyer to draw up a contract to protect your trading system so that they cant sinisterly use it without your express permission and consent as when they need to use it.This is in reference to the Alex guy mentioned.

I think every other proposal he's made so far that you've disclosed to us is in the right of protecting his interests(he's as scared as you are about losing his money).....Capital safety..... right???
I think meet up with your lawyers and draw up your all interests on paper in order to have them protected.
After all should you use points above then even if he's a scammer you still have your money protected.So there's nothing to fear if its done rightly.

Now, that just made me laugh out loud before doing a rethink..it may well be a scam so be careful and make sure you do not share any financial info..