Trade small account with small drawdowns to find investors

Discussion in 'Professional Trading' started by lukas, Dec 27, 2019.

  1. lukas


    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?
  2. dozu888


    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.
  3. lukas


    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.
  4. tommcginnis


    dozu888 likes this.
  5. lukas


    You mean dozu888's opinion is best ignored? What do you think of my idea?
  6. destriero


    Indeed. Perhaps he can move to Trenton!

    How do you reconcile your BS on here while you're living in a ghetto?
    lovethetrade and wrbtrader like this.
  7. dozu888


    how do you know I live in Trenton lol.
  8. wrbtrader


    Just concentrate on being all that other stuff later or when you're bored.

    Nobert likes this.
  9. Schwartz covers this exact thing.
  10. lukas


    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
    #10     Dec 27, 2019