I've developed a pretty solid trading strategy and have backtested with a fairly decent level of success. What are the beginner steps to becoming an FX money manager? I plan on building a track record for about a year. My initial estimates are close to 100% profit each month. I guess I can compound my own trading account up to $500,000 then at which point I would have to take out regular profits. Also any specific brokers I should be checking out for managing OPM in advance? I was thinking Dukascopy because their custodian bank option seems to be pretty attractive in terms of safety of funds + the whole ECN no dealing desk execution model. I trade with FXCM right now and don't expect them to let me grow my account to any substantial amount due to obvious reasons. Good advice appreciated in advance.
Why would you stop compounding at 500K ? What broker you gonna use ? Once you got a substantial track record , I and a lot of others would be interested ? What is your track record so far ?
In order to manage other peoples money you FIRST need to have a consistent winning track record at least 2-3 yrs, maybe less if your first client is someone you know like an acquantance or friend( although I dont recomend it). You have to have a series 3 license, as forex money mgmt(spot AND fx futures) is regulated by the CFTC. But before you do all that, you need to trade with REAL money and be profitable for at least a yr to develop your track record or else no one will give you the time of day.
Track record doesnt mean SH*T if its not from a real trading acct. The CFTC will go after his ass with a vengeance if he tries to use a track record from a demo acct. I kid you not!
Try building your track record with Oanda and register on myfxbook.com to show realtime results directly linked and verified with your Oanda FXTrade account. That's one way to show/advertise your performance. But if it's so easy to make 12% a week (as you said from a previous thread..) or just half your profit target why waste time being a money manager, just trade your own book and you'd make way more than having to give your profits away to "clients"
Oh lord, not another 12% per (insert short time frame) person! That turns $2500 to $900,000+ in a single year when compounded. Hopefully the original poster sees the absurdity in that...
well come on.. i never implied that he should compound. I was merely pointing out that the OP had mentioned 12% per week is well within an easy range for him and if that's the case (big if), he can make more money just trading his own book than being a money manager. Nothing about compouinding there, but if he's able to generate 50% monthly gains, he can earn a glamorous living off that by keeping 100% of his trading profits off his own capital. Why keep only 20% or a fraction of those earnings when he's generating 50% returns every month!
Ric I am in 100% agreement with you. I was just trying to demonstrate to the OP how absurd of a claim it is for anyone to claim that 12% per week is anywhere near the realm of possibilities!
you dont need to have a series 3 to manage money through a managed account setup do you... where someone links there account to yours.. and oanda makes the payments to you...????? i looked it up and didnt see anything.