I was contacted by a broker offering assisted trades / training to trade, for $95 r/t. futures (commodoties and indicies). I asked about his track record; 'not a CTA', thus 'not allowed to provide performance results'. Is that true??? How do you evaluate / decide on a broker to assist? I have traded equities for years, but want to extend to futures, for which I have technical knowledge only. Thoughts / advice please.
If the assistance that a broker provided had any value, then he would not be a broker living off of commissions. Seemingly circular logic, but there you have it. $95 a round turn?! Does he light up a cigarette after each trade you make? I don't know the legalities of providing performance results (I'm sure there are others here who do know), but I find it interesting and immensely entertaining that you were solicited to buy into a service that you are not "allowed" to evaluate beforehand.
95$ a contract??? And you came here thinking you were asking a serious question?? Who was it that said there was a sucker born every minute?
That's exactly my point. My question is regarding the validity of his statement about 'not being able to disclose results, because I am not a CTA'. Thanks.
If he's not a CTA, why not? There's no regulations that I am aware of forbidding this. I would then ask - if you are so good, why not become a CTA? That's the better question in my opinion.
Not too sure why you would even consider this ..... If that money is burning a hole in your pocket, there are many better places for it. If you're unable to find any, just flush it down the toilet - it's faster & won't support these scammers ... R
Don't accept this ridiculous offer and avoid the "will run strategies for you" shops period. While I have found a couple of brokers that try to execute fairly, most suck your account dry with commissions. The public systems available for "rent or purchase" are too curve fitted to past historical data to provide good performance going forward. If you have money to allocate to CTA's do your research and try to get someone uncorrelated to the major indexes (SP500, CRB, Bonds) to allocate a percentage of your portfolio. It is very important to keep monitoring the CTA's performance for changes in trading characteristics as it could be an early warning. Good luck, Gus