I have been looking for opportunities to get extra cash by maximizing the info I already use in my trading. As a result I have been thinking about working as a kind of "CPO" for friends, informally, under the CFTC exemption for power of attorneys, i.e., I would not have to register myself as far as I don't work with more than 15 customers. Have you any experience with this kind of activity and which are the rates and rules applicable? Moreover which legal safeguards would be appropriate?
See the NFA publication "A Guide to CFTC Registration and NFA Membership". It says you don't need to register as a CTA if you have 15 or fewer clients. The NFA publications are available on their website at www.nfa.futures.org.
Aaron: I see you have succesfully made your own fund. I have heard that some PRO's charge 30% fee over net profits. Your fund charges only 20%. Do you know which are the usual rates in the market? Moreover it was not clear to me, in your partnership agreement, whether the "Loss Carryforward" is valid only within a fiscal period. I mean, "Loss Carryforwards" from the previous fiscal period are not taken into account in the current fiscal period. Please let me know if that's the case. I think that's the usual practice. Best regards, cpo