is this a good deal?

Long story short: I have been trading Euro Dollar Futures and US Tsy futures for a while. Main strategies involved :Yield curve and ED spread trading. I started 10k from Jan and blew up after it reached 30k. The main reason is the account size is just two small to do meaning ful curve trading.

Now I met a a guy frm China, who is willing to fund 500 K USD account with the following conditions
1)max drawdown is 10%
2)I have to put up 20k and have to take first loss
3)target return is 2.5% monthly

He gives me 4 months and if returns is 10% or over, he will usize the account to 2MM USD.

question: is this doable? and is this a good deal for me from risk/reward prospective?

 

1) You have to be able to blame yourself for the blow up, not the account size.
2) Any arrangement is "doable" if you are careful.
3) You have showed that you can make money but you have not showed that you can keep it. Take the deal and hope for the best.

 

+1

You need to do a bit of soul-searching and be honest with yourself. Can you actually make money or are you punting randomly?

 

IMHO that deal is just additional leverage.

1) Let us suppose you deposit 20k and your partner deposit 180k, total account is 200k.

you open size say 1 million, leverage is 5:1
a) you take a profit 10k, which is shared between you an your partner, you finally receive 5k
b) you loss 10k, your partner closes the partnership, all loss is yours.


2) You deposit 20k, all money is yours
you open the same size, 1 million, your leverage is 20:1

a) you take a profit 10k, all money is yours.
b) you take a loss 10k, all money is yours

is there a difference? All loss is on you. It worth to take other people money only if they take risks. Otherwise it is an additional leverage (and risks) to your account...

 

I know I have myself to blame for the blowup. My point is because of small account size, you are FORCED to use large leverage (there is no 0.1 contract to trade ), when market move against you, u are not able to hold on the position.
That is main reason why most small futures account get wiped ot eventually.