Can you show me where you are getting the 400k limit from ? http://www.nfa.futures.org/NFA-registration/cta/index.HTML
Can you share your trading experience and your plans for a startup? I am trying to find people in similar situation so we can share concerns and ideas. Thanks
PPM as an investment "unit." from LEApup, from page 1, this thread What is a PPM cause this seems good ???????????
This is the best advice you received here! Here are some things to consider: 1) You will not have the same psychological make up when you trade other people's money. it's a different game all together. Been there. 2) Trading larger chunks of capital might entail a lower rate of return 3) Dealing with legal paperwork will slow your trading. it's a pain. And you know what? People are ungrateful! you will make money, and it will never be enough.
Don't do it. Why give up 80% of your profits? http://tinyurl.com/Hedgediy But if you insist. The above will show you how to do it.
The way I would do it is this - start an incubator and get yourself audited each year. Turn down 9 out of 10 clients. And perform well. Audited performance record is the thing people care about in *sticking with* a hedge fund. Connections can raise $1 billion but if you flop then your fund closes in 18 months. As Julian Robertson said, what matters in this business is performance above all. If you can perform, you will succeed. Connections and marketing make it happen quicker, but better to be a great trader with no marketing or connections, than the other way round.
I am not sure what you mean when you say giving up 80% of profits. My account size now is half a million, lets assume a return of 20% a year , my profit will be 100k a year, however if I manage a fund letâs say of 10 million, my management fee will be 500k (20% of profit + 1 % of assets). Off course we need to know what the cost of running the fund will be, thatâs the concern NOT the 80% of profits the investors will be getting. Can you explain? Thanks