How much would you pay?

Discussion in 'ETFs' started by VolAlgo1, May 21, 2018.

  1. Whoever doesn't need the other more is the one to decide ..... how much.
     
    #11     May 21, 2018
    tommcginnis likes this.
  2. newwurldmn

    newwurldmn

    The OP is a new nick of stealth vendor who tried to push a xiv/vxx strategy. He claimed it earned 40%/year but looking at the fundseeder (or whatever website) he was playing games with his denominator.
     
    #12     May 21, 2018
    truetype likes this.
  3. pipeguy

    pipeguy

    His 25% assuming its a surefire result. Would borrow as much as possible to provide him with trading funds
     
    #13     May 21, 2018
    VolAlgo1 likes this.
  4. Jack1960

    Jack1960

    Following Bernie Maddof, this return is twice as high as Maddof!
     
    #14     May 21, 2018
    murray t turtle likes this.
  5. I’d have to say most ET members are DIY, So wrong crowd to ask.
     
    #15     May 21, 2018
    murray t turtle and speedo like this.
  6. VolAlgo1

    VolAlgo1

    Actually, I am not a "stealth vendor", whatever that is!!!My xiv/vxx/svxy strategy previous trades are all here:https://stocktwits.com/VolAlgo1
    Sure, I agree that 25% is a high return.But, BlueCrest and Renaissance Technologies have funds that generate returns at that level.Mainly, because they manage their own funds, and don't have to worry about dealing with clients.
     
    #16     May 22, 2018
  7. VolAlgo1

    VolAlgo1

    Not saying that 25% would be guaranteed.Nobody can give guarantees about trading PL.However, if the trader had produced >25% in his two previous years, and then was already >25% for 2018 so far, would he be worth considering?I know that risk/drawdowns come into the equation as well.If max drawdown was -20%, is it still a good choice?
     
    #17     May 22, 2018
  8. Robert Morse

    Robert Morse Sponsor

    You are now asking two questions.
    1. What would you pay a trader/manager to net, before paying the trader/manager, based on an expectation of a 25% profit?
    2. Would you hire/allocated toward you with that expectation and the only other information being a max DD of 20%?
    I responded to #1.

    #2 requires a lot more information about you and your strategy etc. I have been involved with backing traders and allocating toward hedge funds/CTAs and raising money for both. This is not a simple question that can be answered this way. It starts with a bio, breakdown of monthly returns from your strategy (real trading and verifiable), description of your strategy, how you manage risk and trade allocation. With this basic information presented in a professional manner, an investor or allocator can decide if they want to follow up with a conversation. That conversation might or might or might not turn into a request for more details such a daily P/L, who is your back up, what service providers will you use etc.

    It is a process. I talk to and email with a lot of traders that make money and want to move into managing money for others. 90% do not take the time to put together a proper package to sell themselves and never move into that space.

    Bob
     
    #18     May 22, 2018
    tommcginnis and SunTrader like this.
  9. The standard 2 and 20% that hedge funds charge
     
    #19     May 22, 2018
    FXbeachbum likes this.
  10. Robert Morse

    Robert Morse Sponsor

    That is a difficult sell for a SMA, for an unregistered trader without the overhead of an admin, auditor or support staff. In many circumstances 0/30 pays the same but is easier to get, IMO.
     
    #20     May 22, 2018
    tommcginnis likes this.