Seeking Immediate Investor

Discussion in 'Professional Trading' started by $Tickman, Aug 18, 2010.

  1. $Tickman


    <b><u>Seeking Investor</u></b>

    <i>I am a professionally trained trader seeking an exclusive investor to provide risk capital in the area of 100k to start.</i>

    After years of education, training, mentor-ship, etc I am now at the point of being confident in my abilities to do well trading but lack the capital to make a proper go of it. I have spent over 50k in training, coaching, mentoring which left me with zero risk capital.

    <b>My plan is as follows for those interested.</b>

    <b><u>Time frame for setup:</b></u> Within the next 2 months, i.e.: end of October 2010
    <b><u>Equity Requirement:</u></b> 100k USD

    <b><i>Split Profits, Losses, and expenses 50/50</b></i>
    <b><u>Current Expenses are as follows and are approximate based on FX exchange rates:</b></u>

    <b>Based on 100k Account Size</b>
    • Internet High Speed $96.00
    • Analytical Software and Data $625.00
    • Daily Coaching $350.00
    • Wireless Aircard/Internet Backup $45.00
    • Ninja Trader $60.00
    • <b>Total per Month</b> <b><u>$1,176.00</b></u>
    • <b>Total Per Year:</b> <b><u>$14,112.00</b></u>
    • <b>% Account Per Month</b> <b><u>1.18%</b></u>
    • <b>% Account Per Year</b> <b><u>14.11%</b></u>

    <b><u>Risk Guarantee to Investor:</b></u>
    <b>Max risk to portfolio</b>, 50%, where trading would be stopped.

    Split risk and profit 50/50, that means that if 50% of the funds are lost, I would reimburse investor 25k (of 100k) through a home equity line of credit within 6 months of halting trading. Investor stands to lose 25k excluding sharing of expenses and any additional setup costs.

    <b><u>Markets to be traded:</b></u> US Electronic Futures including, E-Mini S&P, Mini Dow, Crude Oil, Gold, Euro FX, and other highly liquid futures as focus and capital allow.

    <b><u>Initial Goal per day:</b></u> 1%, or 1k, which would be split with me so .5%/day. This is an average and I have been able to do this in my demo account with good consistency enough to bother making a post like this.

    <b>Please not that this is just a brief summary.<b> There are obviously many things to consider beyond this initial proposal and I would be happy to discuss further for those that are seriously interested. Please pm me or email.

    Sincere thanks
  2. Blotto


    If you're that good, why not borrow the 25k and trade it yourself? If you can make 1% per can make enough withdrawals from a 25k account to meet living expenses while growing the account. You should have your 100k in well under a year, and nobody to split it with.

    What is the $350 daily coaching? Are you coaching your investor and charging for it, or are you paying someone to coach you?

    If I wanted to invest 100k, there are some professional money managers with 10+ year track records who could make me 20-40% per year net of fees on that level of investment.

    You haven't asked for advice, so I won't offer any, however you will see soon enough whether you get any serious interest.
  3. HTF are you going to split losses when you don't have a pot to piss in? Demo performance? Split your mentor's fee? I love ET.
  4. Blotto


    I'll make some other remarks.

    Standard management fees are 2% for actively managed funds, and 0.5%-1% for passive funds (ie index trackers etc). Your management fees should cover all fund expenses, including all fixed costs, and excluding commissions. This should include your salary, regulatory fees, data feeds, office premises, etc etc.

    Incentive fees on OPM are generally 20%, with some of the best performing funds going as high as 35%. You are looking for 50%.

    How do you intend to compete against other investment opportunities? They will provide an audited track record managing 8-9 figure accounts for 5+ years. You have a demo account and some (paid) mentors to vouch for you.

    You are charging 14% per year in management fees. This means that already you need to be in the top 1% of money mangers just to ensure your client breaks even.

    If you have expenses of 14k, you really need to have $1,000,000 or more under management.

    You have not specified how much leverage you are using to achieve 1% per day, nor given any information on how the fund could actually lose 50% of capital - that is a blowup however you look at it.

    You are trading futures, which are highly leveraged. If you would allow a 50% drawdown on a 100k account, why not ask for 50k and use 2:1 leverage? This will make your proposal more attractive to a wider pool of potential investors.

    If you have been trained professionally by an experienced mentor, why do they not provide the capital to back you? Or is your mentor a professional trainer rather than a professional trader?

    Why would you give up 50% of profits on 100k when you could have 100% of profits on 25k paying less than 8% interest for the use of the capital?

    I'm convinced this isn't a troll, so I hope the above is helpful.
  5. LEAPup


    ET is an "interesting" place at times.:D
  6. You'll never get anywhere making $14,000 a year. You need to ditch the stupid futures contracts and learn to condense your fire power. Have 4 strong stocks with buyout potential. ~stoney
  7. Blotto


    This isn't a troll. Naturally all the replies he receives will be some variant of "Where do you get the balls?"

    I believe that this poor misguided soul actually thinks he is offering something of value and his proposition is fair and sensible. He genuinely beleives this and will be hurt and confused at the responses he receives.

    How it is possible for someone - who is oestensibly an adult with access to "home equity line of credit" etc and 50k of disposable income to spend on "mentoring" - to be so astoundingly ignorant of the profession which they claim to aspire to. It is a very sad reflection of modernity.

    I am sad for this person, who is obviously very naive and gullible. He appears to have been very very badly conned indeed, not just out of his money but out of his common sense. People ought not to behave so downright fradulently, but always will when there are so many easy marks.

    Oh depressing.