Raising Capital through paper trading?

Discussion in 'Professional Trading' started by JamieSorres, Jul 27, 2005.

  1. Dear Forum Participants,

    I am planning to raise some capital for trading. I have heard that there is a way that allows traders to raise capital through banks. My source told me that banks are quite happy to do it. As I understand it...

    1. Go to a bank and ask them to trade for them on paper for some time.

    2. If the results are good, then the bank loans you their money and you trade for the bank with some profit sharing, of course.

    I have checked out a couple of banks in Canada and they said that thay never heard of this before. Maybe my source was mentioning European banks? Maybe this was just some faule information.

    Has anyone else heard of this kind of raising trading funds through banks? Please, help me figure this out.

    Thanks in advance,

  2. Hey Jamie,

    I know the answer but... I'm not a forum participant, so... sorry.

    I just post porn and wait around for my next ban.

    The Coin
  3. :confused: :( :) :D
  4. similar arrangements are available through proprietary trading firms... search proprietary trading on google.
  5. toc


    It will happen only with banks but do not try to raise public capital through paper trading or even showing personal account statements........if there are any unhappy folks then they can have your pants laundered via SEC (assuming you are going to charge them incentive based on profits).
  6. Wow - so if you have personal account statements that show a positive return and expectancy EVEN then only deal with investment houses or prop shops...<font size =5> ? </font>

    In other words you can be very liable if you go to the public... ??

    I thought you couldn't go to the public if your results were hypothetical...

    Is that what you mean... any web pages i can go to read about the best people - places to approach...

    as in any other avenues???





    If You Have The Vision We Have The Code
  7. Jamie,

    Your answer is no, this is not possible. Sorry.

  8. What about all these sell-side equity analysts who quit and raise millions without ever having put on a real trade??
  9. Never heard of this .... Doesn't exist.

    This is like asking for a loan for a new startup business in which you have zero experience. Paper trading equals no experience, even if you have a backtested algorithm. This is how a typical bank will view it. There are some banks that specialize in traders and the exchange business: the old american national bank that was in the old MERC building was one ... these days I dont know their status or dispostion.

    The best bet to raise capital is through other successful traders or hedge funds.
    If your idea is really valuable then you will find someone to give you money ... just like any other VC ......

    #10     Jul 28, 2005