Starting a fund / raising capital

Discussion in 'Professional Trading' started by doublet83, Apr 21, 2012.

  1. Busta21

    Busta21

    The question of raising capital comes up over and over. Personally, I think it's just a crap shoot at the end of the day unless (like on user posted) you are working buy side and are able to manage $50MM. I am currently going through this same situation and have come to the conclusion that aggressive options trading along with stocks trading under $7-$8 until I am able to accumulate north of $2+ mil then attempt to structure a trend strategy for a couple years to then shop to larger clients.
     
    #71     May 28, 2012
  2. Busta21

    Busta21

    This is a ridiculous statement. Why would you not manage OPM? $300k in profits, after taxes, is not much. And how can you make a statement like that? Maybe, to him, $300k or whatever is not that much money, which it really is not at the end of the day.
     
    #72     May 28, 2012
  3. My natural human tendency to defend myself when qattacked despite there being no apparent benefit in doing so is a weakness I will have to work on.

    Attached is screen of YTD gains in my main IB account of 271k. Screen shots can be edited too, I know. I expect this to be the next accusation.
     
    #73     May 29, 2012
  4. Yes thats what it means.
     
    #74     May 29, 2012
  5. And an entirely worthless DD statistic.
     
    #75     May 29, 2012
  6. Correct me if I'm wrong, but aren't results audited on a monthly basis? So monthly draw down seems meaningful to me. I know peak to trough draw down is probably more meaningful but is something like that included in audited results?
     
    #76     May 29, 2012
  7. Bingo.
     
    #77     May 29, 2012
  8. Busta21

    Busta21

    Maybe I am new to forums but I never understand the entire transparency thing that seems to go on. Why is it anyone else's business (unless they are a potential LP) here on the web to confirm another persons trades? I mean what are you cretins going to do validate him by giving a thumbs up, it makes no difference, this is a waste of time.
     
    #78     May 29, 2012
  9. heech

    heech

    No, and that's generally because (given enough time) peak -> trough numbers will look like what you see in month/month draw-down, anyways. This actually depends very much on the specific trading strategy... if it's any kind of option-based, average-down, martingale strategy, then a sophisticated investor will know to look at intra-month draw-down as well.

    Anyways, you don't gain anything from convincing people here. (And vice versa, I don't see how any of us gain anything from "proving" you're a fraud.) Just focus on business.
     
    #79     May 29, 2012
  10. Why not use IB's analytics to produce a chart of your YTD? You can generate a PTT/MTM chart. But as heech stated, most of us don't care.
     
    #80     May 29, 2012