So let's assume that a trader has indeed

created a great trading system....solid stats....logical risk management.....proper scaling ladder.

What are the next steps for him to create his own hedge fund?

 

Prove it.

Over a few years at least of verifiable actual trading.

 

I agree 100% with SunTrader. A minimum of 12 months of trading just that strategy and then get it verified.

 

https://www.investopedia.com/articles/investing/040915/how-start-hedge-fund-united-states.asp

 

Come up with a marketing plan.

 

wait, what... that seems... easy.

 

12 months or 24 months is not even enough. Just look at Cathy Wood’s Ark funds. LOL

 

It's almost a philosophical question. Anything less than a lifetime isn't enough to prove a track record without a doubt.

 

Sorry Robert but not in agreement with me .... saying over a few years.

 

The question was , what is the next step? If you do not have an interesting strategy with acceptable risk reward, that is the end of your journey. We work with a number of small hedge funds that have formed their LP and LLC and only use their funds or an angel investor to build that track record. They often start with about $1mm to $5mm.