Raising capital for a private trader system

Discussion in 'Professional Trading' started by Tinkerz, Sep 23, 2006.

  1. Tinkerz


    I would like to know what is the best was to raise capital to invest in a trading strategy that I currently use.

    I dont want to lie about who or what I do but the facts or this, I entered the market undercapilitized 14 months ago and it takes time to devlop a system, I am workiing with 3 experienced traders who I program systems for.

    The system that is use correctly analyses volume and is making me a nice income, it is also robust as I have studied volume in great depth.

    This system is my own design and no other traders are involved it is the total programming knowledge that I have and their experience's that has lead me to this point, however I also wish to move foward and this involves other markets and systems.

    So what does someone do to the big world to say yes I can
    trade this market and I would like some backing so I can move on and develop more systems.

  2. rosy2


    family and friends or take out a personal loan.
  3. I guess you should make money first. If your system is as good as you say you will be very wealthy in a few years.
    If your saying I built a system that’s great but I don’t make money and I need someone else’s well that does not sound like a solid system to me. Why not put 5k down ask a prop firm for 250k buying power? Than run your system in 100 share lots and become rich in a few years instead of doing it big day one.
  4. Tinkerz,

    You will find out it is a two-edged sword...just read on... from the reply's you will get here and are about to get.

  5. If your system is that great you shouldn't be looking to dilute it for extra capital. Go for as much leverage as your risk tolerance will allow. If it is equity trading a prop firm is the way to go.

    For futures margins you'll need to just raise more cash. If you can't borrow any more then start pitching your friends and relatives. If you can post a track record you might be able to get someone here to stake you. How much do you need?

  6. Credit Card Debt. Use cash advance to pay the monthly payments on your credit card. If your system is as good as you say then the debt should be paid off in a yr or 2 assuming 40-50% compounded returns per yr
  7. Well, I hope your programming skills are better than your grammatical skills.
  8. [​IMG]
  9. Grant



    If your sysetm is as good as you claim, you'll find backers.

    You need to establish a trading record to demonstrate viability (will your system allow small-lot trading?)

    Look at the following: http://www.elitetrader.com/vb/showthread.php?s=&threadid=75435

    Good luck with raising the cash. And listen to pragmatists, not pedants.

  10. Tinkerz


    Thanks for your advice,

    It is a strategy for index trading.

    So basically the point is results drive capital.

    This is not difficult to prove, however its a question of time I guess and building up database of trades I use.

    One problem thought, I cant build a total model that I can backtest, as I need to compile the data stream of volume in realtime to produce 1 of the indicators.

    I just cant get the data right now back far enough to reproduce it.

    But I am working on that.

    So how then can I say to potential investors/backers that this trade is from this system based on these rules, I am already saving screen shots of the day for reference.

    #10     Sep 24, 2006