Doug, I think you have a winner here. If you can make a success of this guy then you are truly gifted. myoffices, 1% of $2MM is $20,000 http://www.elitetrader.com/vb/showthread.php?s=&threadid=152223&perpage=6&pagenumber=4
Hi DG... When I started out I had the same concern about the fund of funds account I was trading. But once I got into the relationship with the people who were providing the $20 million it wasn't even an issue. You see, they have no incentive to mess with somebody who is making them money. They're not investing money to find out how some lone trader is making money. From their perspective, an individual trader is just a piece of the bigger puzzle their managing. The FoF is FAR better off spending time raising capital and allocating it than reverse engineering some trader's strategy. 20% of profits is a fair price to pay for somebody to generate the returns. And also keep in mind that the FoF has to generate returns for its clients too. If the split is too high with the trader, it's going to carve a piece out of the FoF's returns, and provide incentive for the FoF manager to allocate money someplace else.
I'm running a business, not challenging anybody on a school playground. And I'm not wasting anybody's time. I've had many private discussions with people who have emailed me and PMed me and one thing I've discovered is there is no shortage of quality people here at ET. And what I'm looking for first and foremost are quality people, not just self-proclaimed good traders. I would gladly sacrifice a couple of dollars in return to work with somebody who's trustworthy and humble rather than somebody who acts like an arrogant jerk. And it's not just because the former is more fun to be around. It's because the arrogant jerks are significance driven, and those who are significance driven quite often do stupid things just so they can feel significant. I guess what it comes down to is choices. Everybody here has a choice of how they spend their time and how they interact with their colleagues. I, along with all the people I've worked with over the years, choose to be respectful and professional. Those who don't choose to act professionally and respectfully tend to weed themselves out from many possibilities in life. They trade opportunity for a momentary feeling of significance, which is what many people on this thread have done. Not a very good trade for people who claim to be the best traders here. Doug P.S. I would suggest that your upcoming reply to my post will be an example of you wasting your own time, not me wasting your time.
This is a well-known behavioural finance result. Another one I really like is the one about the overconfidence bias exhibited by men ('Boys will be Boys' by Odean and Barber). I wonder what percentage of Doug's new recruits are single males. If they're a large proportion of his sample, he might be destined for underperformance.
Doug seems like a nice guy. however, i know dozens of FOF's and hedge fund managers, there is much similarity in personality regardless of strategy. NOT ONE speaks in this manner---- he sounds more like a NLP or multi level marketing guru/executive OR perhaps a writer --- motivational speaker or otherwise... \ take it as you will, surf ps. the NLP trigger words are obvious of someone trained to influence-- I am very curious to see where this leads......
Doug, I sent you a pm. I would be more than happy to demonstrate my trading at one of your offices in person. I would also have no problem being coached to help increase my returns.