Why would an experienced trader that is making money have any interest in this deal? $10,000 worth of capital for a 50/50 split? If he/she doesn't have $10,000 of their own (where they would get 100%) I don't think you would want them. As @MarkBrown mentioned, you would get basically broke rookies. I think there also might be an issue with IB and you having many subaccounts with different people trading under them, especially if coded as retail customers. This is not something that brokers are comfortable with.
The OP prefers to work with folks who have lost and then decide to stay in the market. " thesis isthis - there are many good traders out there who can'traise money due to a high DD, low sharp ratio, no pedigree, no experience in investment banking firms, lack of capital. What I believe is that these stats don't show the true picture of trader's developing skills." He wants to groom traders. That implies someone has 50k to throw it away?...... Sketchy......
OP, your idea is not bad, but if you want to attract experienced and even successful traders, you would have to give way more incentive than an account of 10K +50/50 split of profit. Also, communication and marketing are part of this kind of business... Trading and Money Management are businesses and should be treated like businesses. Best!
Do you remember the old Bell Motorcycle Helmet ad? If you have a 10 dollar head,buy a 10 dollar helmet. You really want to fund 10k traders???
Do it. Peel off and replace the bottom trader% at predetermined intervals. Say you scale up to 10 traders, then each quarter peel off and replace the bottom 20%. Rinse repeat. https://en.wikipedia.org/wiki/Business_incubator Make the standings completely transparent, public, publicised and ComPetiTive. Evolve it into bragging rights and Track Records the sooner the better. Chop Chop! Here's your first prospect. https://elitetrader.com/et/threads/from-micros-to-millions-2-per-day.351470/
what a joke. you only talk about profit sharing. most of the traders lost money trading. and you don't talk about loss sharing.
Couple things to clarify: - $10k starting capital can be adjusted (also, they are all margin accounts) - 50/50 is just a number so I can cover the operating expenses if there is any. If the capital amount grows, traders will get more than 50% - there is no loss sharing - my company will take 100% loss - I chose IB because I have several accounts which I can set up sub-accounts under it and set up a third party vendor (trader) to provide the profit sharing payments - form 1099 will be needed for tax purposes - I'm not trying to groom anyone - I'm not a good mentor so there is nothing I can train anyone in trading I personally trade as well but not a good trader (see below for the screenshot) and I thought there would be a business opportunity as no one wants to fund small traders like me. And yes, it's risky but I see this as a startup which I've done it couple times. https://ibb.co/3yDPBpt
Not your problem, not A problem. "Stay in your own lane and be valuable." Start with the end in mind. What types of biz did you do before?
Hi OP, just wanted to wish you all the best. Even though it might be a bad idea, you are supplying accounts and capital, which is a fair deal. It is amazing that you cover loses. If anyone would end losing here that would be you, and since you are starting the deal, I guess it is all set.