Obtaining Funding/Trading Capital

Discussion in 'Educational Resources' started by hmap1, Jan 17, 2004.

  1. hmap1

    hmap1

    Hello. I have a question. There is so much money out there and to me it is amazing how hard it is to find that money sometimes. We are a black box firm that has been in business for 3 years. During that time, we have been heavily into R & D with our extensive datasets for trading system development. Our main system has produced roughly 100% return on a monthly basis based with the capital put into the account for trading. Those numbers are real. This system is NOT a scalable system. It has its limitations, but does work and has produced some amazing pieces of software in the process from our programmers. Now, that system has been funding the company for years and continues to do so. In the meantime, we have been building many other systems for diversification. Of those systems, they consist of 3 different styles and can be spread throughout equities and futures markets easily and quite effectively with very high percentage of profitability and minimal drawdowns. We are trading them live with similar results, just we are low on capital. ALSO, we are in the process of developing an automated money management system to interact and control ALL of these systems to optimize the trading capital. The company has reached a goal that has taken years to do and many many R & D dollars to get to this point. Now comes the biggest issue: Capital. We are a small company and for some reason, cannot find the right contacts to get to the next level. Some of the people we have talked to ended up being bad matches for our company(i.e. they were not up to our level of understanding and there would be a huge price to pay for their capital). We are a company at a point where money will make money. It is a very good place to be, but also very frustrating at the same time. Is there anyone out there who can understand our situation and may be able to help us with either ideas, resources or contacts? The goal is for everyone to make money and our company to grow. That's it. We are a company ready to grow and all we need is capital. We have trading records and statements and all of that. Any help would be appreciated. Please PM me if you have any ideas. Thanks in advance.
     
  2. Dear hmap,

    If your "black box firm" story holds any water, why do you still have to beg for capital? I am not going to annoy you with making some calculations about what it means doubling your money every month. This has been done over and over.

    Granted that you will rapidly run into a scalability problems, the fact that you beg here pubicly for capital is not credible!

    nononsense
     
  3. hmap1

    hmap1

    Thank you for your reply, however, you are incorrect about this being "nonesense". Our main system is limited to the AMOUNT OF MONEY it makes on a monthly basis NO MATTER HOW MUCH CAPITAL you put in. Our shop has a fixed operating cost (ie. Payroll, rent, ins) and that system covers it. The need for capital comes for growth. The extra cap we do have is in these other systems and we reinvest it, but its too small to make an impact. The models are working, but we need money to make it grow, to make the company grow. Does that clear things up? I am not a fool. I realize that you are thinking "if the systems work, why do you need money?" We need it because we are limited in capital and we are at a point where that's what we need and it doesn't grow on trees.
     

  4. Did I not write the following:

    "Granted that you will rapidly run into a SCALABILITY problems, the fact that you beg here pubicly for capital is not credible!"

    In your reply you seem to recognize this saying:
    " Our main system is limited to the AMOUNT OF MONEY it makes on a monthly basis NO MATTER HOW MUCH CAPITAL you put in."

    So we think about the same about scalability. Why then would you need any more capital? Simply trade together the capital you need using your black boxie. NO MORE THAN THE MINIMUM CAPITAL you need to rack up fat profits every year in year out after that. We are in full agreement on this.

    Why beg for more capital that you couldn't use as you admit yourself?

    nononsense
     
  5. With the alleged returns, you could take a cash advance on your credit cards and soon amass a large fortune. In less than a year, a $5,000 initial investment would be worth over $1,000,000. So, if you're for real, then you really shouldn't have a need for other people's money.



     
  6. hmap1

    hmap1

    Don't you wish it was that easy. There are things called "fixed costs". It is a business.
     
  7. hmap1

    hmap1

    This is where you did not read correctly. ALL OF OUR OTHER SYSTEMS ARE SCALABLE. IF WE HAD THE CAPITAL WE COULD SCALE THEM. Our main system now simply funds the company on a monthly basis and any small profits after our costs go directly into the other systems. The issue is that its not enough money to make an impact AND GROW.
     
  8. hmap,

    This is really funny now.

    (1) So you have one system that does not scale. Some people have such a system and get a steady income out of this. Join the club.

    (2) You also have a system that SCALES! Goodness, Gracious! Lucky dog! Sorry that I underestimated you, truly sorry!

    If you have a system that scales though, why do you have to beg for capital:

    Formula:
    Month 0 Borrow $1000 from the old system to start
    Month 1 Net $1.000 - pay back $1000
    Month 2 Net $2.000
    Month 3 Net $4.000
    Month 4 Net $8.000
    Month 5 Net $16.000
    Month 6 Net $32.000
    Month 8 Net $64.000
    Month 9 Net $128.000
    Month 10 Net $256.000
    Month 11 Net $512.000
    Month 12 Net $1.024.000
    Month 13 Net $2.048.000

    You get the idea, hmap! I hope this helps. If you don't get it yet, I will be happy to continue the calculations for a small fee.

    Again, are you boys lucky you got a system that SCALES! Pretty soon we will all look up to you like the new Bill G$tes.

    :D :D :D
    nononsense
     
  9. hmap1

    hmap1

    You are not getting it and I am done explaining. The fact is that you are so busy trying to prove me wrong that you are just not getting it at all so I am done explaining it. Our main system has the highest return on the cap we have available and that basically breaks us even, leaving no more room to grow the extra systems out which also have excellent return, but require a good pool of capital to work and aid in growth.
     
    #10     Jan 17, 2004