Other advantages of managing OPM are; taking higher risks and savings on transaction costs due to relationships with brokers; and aiming for smaller returns is satisfactory while maintaining good bonus
I think it is rather a matter of the profile and specifics you have as a trader. This profile gives you more (or less) options in trading. Some elements that define your options: Is your system automated or not ? Manual trading will limit the number of positions you can handle. Is there a limit in size in the things you trade ? If there is a limit it might be impossible to invest all the money you can have from a fund. That will bring you less money than private trading smaller positions at 100% profit for yourself. Holding time of your positions ? If you are holding for seconds you can never handle big positions that you can handle if you stay for weeks or months. Etc... In this discussion people start from their own situation. Hypothetical example: Number one can work for a hedge fund where he is part of the system. His optimal profits lies in working there as his maximal profit can be generated there as salary and bonuses. In general these people don't have a high return on their own trading system. Number two is an independent trader that has his own trading system generating three digit monthly profits (% return) in short term trading. He needs nobody as he has everything under control and generates easily 7 digit or even in the low 8 digits net profits. I have the feeling that the discussion between Wintergasp and Profitlocker is a little bit like the example: they both speak about two different things that cannot be compared. They are both right from their personal point of view and personal experience. They both choose what for them was the best solution (at the time of decision). This optimal solution can still change over time as things are dynamic, not static. Markets can change, but knowledge can change too. A few remarks from personal experience: I know that for a good trader in a specific situation, he can not accept offers from "LONDON" because these offers would rather reduce his income as he should give up private trading. I personally would lose money if I would be trading for a fund, based on the conditions they proposed to me years ago. I know a few traders that went to "LONDON", the burn out and stress caused most of them to stop when they were between 30-40 years old. Many of them stopped trading after that. Why, I never understood this? One started to work as a policeman... If you were a good trader in London? Why I would refuse (and refused in past) any offers from "LONDON": I have COMPLETE FREEDOM, which is impossible if I would work for a fund. I travel at least 6 months a year and trade a few hours a day from my hotel room. Can even afford not to trade at all for a few days, weeks or months. I don't need to report to anybody, and don't have unreasonable or angry clients calling me all the time. I don't risk lawsuits from these clients as clients don't exist. I take all the risk but also all the money. Even if I could make more money in London, my quality of life would be dramatically less than it is now. I would have the feeling if being a prisoner (maybe even in a golden cage). So the personal situation defines what is the best solution and can be completely different for each person. What is very bad for A can be a fantastic solution for B.
Must be nice to be a trust fund kid. Most of us are not born wealthy, or had a fortunate break like selling a company for serious $$ -- so "london" is the best choice. With that said-- private systems generating 3 digit monthly profits are a fantasy -- who do u think is reading this? el
Are you asking me? What is your fund performance year after year for the last 10 years? If you don't mind to share.