I have finally come to a conclusion that is much more realistic to live off trading not by growing your own small account organically but to trade other people's money, scaling up this way. I want to build a track record of trading a $25k nominal account ($12.5k notional, I.e. actual funds) demonstrating approx. 5% net monthly return (about 50-60 % annual) with no more than 10% drawdowns. I believe the drawdowns are much more important than returns for nearly all investors. I want to use the Echo Trading feature at RJO to get the first investors. They have 80k accounts, average account is $40k-50k. If only 1 in a 1,000 decides to invest I have 80 x $40k = $3.2M AUM. No CTA registration required. Do you think it is better to go this way than the usual high-risk -> large drawdown -> blow-up route? How long a track record do I need?
you are wasting time in day dreaming. you have 1% chance to build a track record good enough to attract investors; and if you do, imagine how many phone calls you get from 80 guys every time you have a losing day. worst idea. so many $250k jobs out there, you can draw up a path and get there within a few years, meanwhile the market will have a moon shot in the next few years. forget $3m AUM.... think $3m of your OWN money.. set for life.
With this service there would no phone calls. An investor could only stop the subscription for my program. I would not even know who follows my trades. Ok. My own account will grow by 50% annually starting from $25k. No big money can be made this way in my lifetime.
Indeed. Perhaps he can move to Trenton! How do you reconcile your BS on here while you're living in a ghetto?
I thought about phone calls. As well as the risk of being arrested by FBI for not filing a piece of paper on time, paying thousands of $ for accounting, audit etc. You eliminate all this with Echo Trading, although it is a different pricing model than 2/20% you get as a CTA