Developing Trading Track Record

Discussion in 'Professional Trading' started by bkamrath, May 14, 2012.

  1. bkamrath

    bkamrath

    Hey guys

    I'm wanting to establish a trading track record I can present to potential investors. I already have a group of accredited investors who are interesting in investing if I can show impressive results.

    But that is a ways down the road and the most important thing is the actual track record. I know that I could start an "incubator" hedge fund for approximately $2500. However, is it acceptable to start an LLC and open an account with IB and then keep documentation of all trades in order to present to investors?

    Does anyone else have any experience with a similar situation?

    Thanks
     
  2. plyka

    plyka

    Why would you start an incubator fund for establishing a track record? Just manage a few accounts of friends and family and that should suffice, especially friends. Even your own account can be used to establish a record.

    I think the most important thing for a track record is performance, not how your business is set up or what the technical aspects of the money your managing is.
     
  3. rmorse

    rmorse Sponsor

    Yes, you can do it with an LLC. If you use a firm like ours, down the road we can help introduce you to administrators, third party marketers and help with cap intro.

    Bob
     
  4. bkamrath

    bkamrath

    As long as you only trade your own funds in the LLC, is there any registration required?
     
  5. rmorse

    rmorse Sponsor

    Not with the SEC or Finra. You have to form and register the LLC with your county and state and get an EIN form the IRS. Easy to do or you can pay a service.