How much should I charge the clients?

Yes, everything in a legally enforceable contract. In addition, place funds in an escrow account to cover their losses. Charge your clients 50% of the profits.

edit: Also place in escrow the 5% gaurantee.

What has your return on total account equity been for the past five years?

 

total cumulative return is around 1500-1600% for the last 5 years.
[
QUOTE]Quote from trendo:

Yes, everything in a legally enforceable contract. In addition, place funds in an escrow account to cover their losses. Charge your clients 50% of the profits.

edit: Also place in escrow the 5% gaurantee.

What has your return on total account equity been for the past five years? [/QUOTE]

 

Why dont you add something of substance to this thread, maybe we could all take something away from this. Maybe your the complete moron here!

 

I agree with others that its best to avoid friends and family in your situation, but you seem pretty set on it

Regarding fees, if you charge them something fair, they are sure to talk about your back and be jealous (even if you provide them with stellar returns after fees).
Best bet might be to charge 2/20 and tell them this is standard for hedge funds, which it is. And even with this, and with you guaranteeing their principal, there is real possibility of them talking behind your back...

 

I totally agree. Maybe it is better just to give them free money, where they are more grateful.

 

Why not avoid the hassle and trade prop and keep 100% of the profits ?

 

why do you that help relatives is naive?

 

The people you describe -- your friends and family -- are financially unsophisticated and neither financially or psychologically equipped to deal with draw downs. It is not good enough for you to be a good trader they must also be competent investors.
Spend the next year having a monthly meeting with these ten or so people where you review your trading results and methodology. The ones that pay attention and "get it" should be invited in to your group with ONLY amounts of capital they can afford to put at risk.

Or, better yet, skip all of the above and take them all away for a long winter weekend in the Caribbean at your expense as soon as your trading makes that level of expense reasonable.

But here is the key. Whatever you do, do it with adults who both understand and can afford the risk. Otherwise you don't "get it"!

 

Suggesting that an idea is illegal is moronic? Ahhh, ok chief.

 

Alternatively, you could just give your friends and family some money. Trade your own funds and keep all the profits. That way you get the satisfaction of helping people out, no legalities, no worries about alienating people, no extra stress and everybody gets what they want.