I think there must be some conditions: When managing OPM for family's and friend's, would that be fair to use an alternative strategy that whould be hard or impossible for reverse-engineering, traded in some liquid Forex markets, designed with front-running set-up, moderate returns, and moderate MaxDD, etc. Are there some HFs and CTAs using individually managed accounts to manage OPM, particularly for institutional investors when requested?
8% per month... 25% incentive? You're dreaming. I'm still laughing at the possibilty of someone who can produce greater than 8%/month return and only take 25%. Why on earth would they want to manage OPM?
I suppose there might be people who DO manage accounts individually. But I'm sure it just become too hard to keep track of so many accounts and positions. Performance probably ends up sufferering as a result. But if a trader manages 1-3 accts as 1 portfolio, whether it be stocks, futures, currencies, etc, I think it's better from a risk/performance standpoint. For me anyway, it's just too much crap to take on another account with it's own series of trades.
Perhaps MAs would be good for providing much transparency and security to some investors such as institutions, FoFs and family offices. As far as I know of the managers on ET, both Fitrol and Schindler would manage MAs, min $300k for Fitrol and $500K for Schindler (or $20k for fund). I often keep tracking various forex players, according to IASG others like IKOS requireing $1,000K for MAs (or $500k for fund) and Drury $20,000k for MAs (or $100k for fund).
http://www.elitetrader.com/vb/showt...erpage=6&highlight=ib and family&pagenumber=5 That says according to NFA, CTAs are basically for MAs. In other words, CTAs would keep lesser secrets to their clients.
I believe there are a few who have records like this. If you are really interested, I can give you some names.
I know of a forex trader who uses automated systems. He would be happy to use a back-burner system, expecting 40~50% yearly returns with around 5% MaxDD when using 5:1 leverage, for an OPM program charging 3%/30%. How that sounds? Not sure if his plan is for real.