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Old Jun 6th, 2012, 06:34 PM   #1
ronin266
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Join Date: Jul 2006
Posts: 242
Hi,

I have a couple of people interested in investing into a trader group to develope it into a hedge fund in a couple of years and they asked me a business plan to have everything on paper. I´ve written bp before but for "common" business. I would like to take a look to some examples before structuring my own.

Anyone?
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Old Jun 6th, 2012, 07:06 PM   #2
Ripley
 
 
Join Date: Aug 2004
Location: New York
Posts: 2,075
Did you try www.yahoo.com?

A prop office business plan is very similar to a stock brokerage business plan and you may have better luck searching for a stock brokerage business plan.
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Old Jun 6th, 2012, 07:55 PM   #3
ronin266
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Join Date: Jul 2006
Posts: 242
Tried Www.google.com . No one uses yahoo this days lol.

I´m still googling,but maybe someone has some old one around there. My main problem is that in this case one doesn´t deal with a product, and I´m finding dificulties structuring all the descriptive stuff in better language than "this gonna make money from nothing". :/
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Old Jun 6th, 2012, 08:25 PM   #4
1a2b3cppp
 
 
Join Date: Sep 2008
Posts: 2,735
You want a prop business plan?

Hire a bunch of people. Have them trade on a sim account but don't tell them it's a sim. Take the opposite of their trades in a real account.

Most of them will blow their accounts (and you will make money from taking the opposite trades). The few who do make money, you can pay them their share of their "winnings" with the money you made off the other people's trades. Remember, these "winners" actually lost you money since you were taking the opposite side of their trades, but you'll have more than enough to cover it from the losing traders.
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Old Jun 6th, 2012, 08:29 PM   #5
1a2b3cppp
 
 
Join Date: Sep 2008
Posts: 2,735
For example, you hire 20 people. Each of them puts up $5,000. That's $100,000 right there.

15 of these people lose $500 their first week. Their "accounts" are now worth $4,500 each.

You took the opposite of their trades so you actually made $7,500.

5 of the people were profitable. Let's say they each made $500 their first week. Their "accounts" are now worth $5,500 each.

You took the opposite of their trades so you actually lost $2,500.

Your net profits at this point are $5,000.

Your firm has a 50/50 split so each of those people gets paid $250.

After you pay your people 50% of their $500 winnings, you have paid out $1,250.

Your profit for the week is $3,750.

Repeat. Encourage people to over trade so they lose more money. The more they lose, the more you make. When they blow their accounts they can deposit more money or you can fire them and hire new people.

In the event you get someone who is consistantly profitable (unlikely), just set it up behind the scenes so his trades actually go through and make money on his trades.
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Old Jun 6th, 2012, 08:36 PM   #6
ronin266
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Join Date: Jul 2006
Posts: 242
Lol thanks for the scheme, but the people wanna hire traders for real. Not opening accounts for them on their own money.
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