Getting Funding for Trading?

Discussion in 'Trading' started by stockpredictor, Feb 20, 2021.

  1. I know what I'm doing and have been trading well, both long and short. Live entries and exits called for a quite some time now. My system is one of the best today. I don't even get losing weeks. Proof: https://www.elitetrader.com/et/threads/prediction-based-trading.351176/page-35

    However, there are a few problems.
    - One, my account is still only in the 5 figs.
    - As mentioned in the thread linked, the strategy does better with equity, not options. This means that I need a large capital requirement to make meaningful gains.
    - I have hardly any social skill.

    I have proof of my system working, unlike most people, so therefore it should be easy for me to get funded and trade with 6-7 figs. I went to the local bank on Friday and showed it to the lady and told her that I can trade well and even showed her this thread, so could I get a reasonable loan to trade with, even just 300k-500k. She looked at me like I was crazy. I didn't expect it to work off the bat but I don't understand how people can get funded in the first place for stocks. I know it was also because I didn't work it right (see point 3 in problems) I looked at some other places but it seems that they mainly fund forex or futures trading, which does not allow for the variety of vehicles necessary for my strategy. I might trade with someone with a relatively large account else for a cut, but is there no other way? I only get automated responses/no response whenever I contact funds off their web pages.
     
  2. horizon

    horizon

    I don’t think banks will give you loan for this business. Maybe you have to reach out to family members for a personal loan? Do you have a performance chart? What is the P/L last year?
     
  3. ph1l

    ph1l

    Investigate "prop firms" (companies that you pay to trade on a simulator with the possibility of later trading the company's money) that let you trade stocks. Here is one that is a sponsor here.
    https://trader2b.com/
     
  4. I think Bright Trading (https://stocktrading.com), with a small $50k deposit, will let you trade firm capital up to 30x = $1.5million. Someone please correct me if I am mistaken or if there are better options for equity prop firms.
     
    VPhantom likes this.
  5. Yeah family members willing only a few k. Tastyworks only gives pl, not a chart. Up a few hundred percent. However, just this month I was way over a hundred percent. I'll post pic tomorrow. But it was a small acct on that one so I could be more aggressive
     
  6. I'm wary of those. They make money from fees and then put restrictive position limits so it's hard to make good money edit: plus it says you get a refund of the sub after passing the challenge. This is also how they make money.
     
    Last edited: Feb 21, 2021
    VPhantom likes this.
  7. It says $500/mo right at the front. Then they restrict position limits. That's how these firms make money.
     
  8. Idk about that. I think it says "$500/mo value for free" (bad comma placement). And even if it costed money, you probably wouldn't have to pay for extra stuff like that "deep data/predictive analytics" or training if you didn't need it.

    A $50k-$250k deposit for 30x = $1.5m-$7.5m firm capital doesn't sound very restrictive to me.

    I'd be more concerned about the commissions, like you said, and profit split.

    But yeah someone who has a better idea and knows more, or works with them, should comment on their experience.
     
  9. kmiklas

    kmiklas

    Yeah after the 2008 crisis they clamped down on two things: loans for either trading or house flipping.

    The bank asked me for 20 YEARS of trading records!
     
  10. El Trado

    El Trado

    For this kind of funding, it is only the 3F’s that are viable options: Friends, family or fools
     
    #10     Feb 21, 2021