performance history, net of fees

Discussion in 'Professional Trading' started by Epic, Sep 9, 2011.

  1. Stok

    Stok

    Ha. Well, I plan on talking with them soon for a CPO. When I talk last time to them, it was a fixed fee (this was for an equity/option fund) for audit/K1's and it would not be a % of assets no matter how big we got (from what I remember). I left the organization 6 years ago anyways...so been outta the loop.
     
    #21     Sep 15, 2011
  2. heech

    heech

    RKCO never told me to keep the quote to myself, and I've actually talked about it before on this site.

    I'm paying $25k/yr for audit and tax... but there was an additional charge for state filings that we didn't realize would be required.
     
    #22     Sep 15, 2011
  3. Epic

    Epic

    thanks.

    $25K isn't bad, I've heard much higher from the "big 4". I think you personally have done a great job demonstrating that a top pedigree, big 4 audit, and $25MM seed, aren't required to make a go of it.

    Luckily though, my CTA doesn't face the audit requirements that your fund does.

    {edit} not that you don't have the pedigree or capital, but rather that you've done well in documenting and proving the common misconceptions on this board. Class Act
     
    #23     Sep 15, 2011
  4. Epic

    Epic

    BTW Heech.

    Some time ago I believe you said that you were considering a CTA due to frequent request. Admittedly, that is one of the two main reasons for me choosing a CTA.

    Did you ever follow through on that consideration?
     
    #24     Sep 15, 2011
  5. heech

    heech

    Yes and no? I *am* open to it (and have proper registration @ NFA), but only at a pretty obscene level: $5 million+.

    For what I'm doing with my automated trading, I decided anything smaller just doesn't justify the paperwork. I'm trading... 12000 RT a month with my $4.5mm in AUM. Trying to track down/allocate trades is just too much work.
     
    #25     Sep 15, 2011
  6. Epic

    Epic

    Whoah!!! 12,000/month. Yes, that would be maddening to manage. You can make it simpler though, and I don't think that $5MM+ is obscene. I get at least 10X the number of potential clients with a CTA than I would've with a CPO.

    But we are in different worlds. If I get 500rt/month I'm exhausted and I've probably made a killing. I also only trade 1 contract per $50K AUM. So $5MM only means 100 contracts.
     
    #26     Sep 15, 2011
  7. heech

    heech

    Yea each of my trades is only 2-5 contracts... We are literally talking 100-300 trades a day. Major pain in the butt for every additional account.

    My FCM should love me, right?
     
    #27     Sep 15, 2011
  8. Epic

    Epic

    I'm just trying to figure out how you overcome the commissions.

    At my trade rate I lose about 5-7% of profits to commiss. And I have about a 9:1 win:loss rate. You are either almost always right, or your profit targets are higher than mine. Or you're in Forex?!?
     
    #28     Sep 15, 2011
  9. Epic

    Epic

    LOL... Before coming on board, almost every client asks, "So, how exactly do you do it?"

    My answer:

    "Well, first, the program has both a systematic and discretionary element to it.... blah.....blah.....blah.... for 5 more minutes."

    Heech's answer:

    "Beat the market into submission! Any more questions?"

    :D
     
    #29     Sep 15, 2011
  10. heech

    heech

    I guess we're really in different worlds!

    Are you paying insanely high commissions? I'm paying (all-in) around $3.60/RT. If you're paying 5-7% of profits at a comparable commission level... then your average trade profit is only about $50-60 per contract?
     
    #30     Sep 15, 2011