I see this thread caught a bid. So, over the weekend we had a convo about his plan. The first thing we spoke about was the cap up front. I addressed the very same points you all made. He was open minded and basically said "listen, the 25k contribution was just a thought, i`ve never done this sort of venture before. And I would be open to no cap in and a drastically reduced cut." So thats good. Yes, one year seems a but much to learn a system. But that reply was in the context of an intern learning the markets, how to trade apply risk..etc. Cold from day one. An experienced trader like myself(9 years) could learn it in a few weeks. But the system is pretty much discretionary right now. It does create signals with targets and stops. But its up the the trader to decide which ones to take. so I asked the question "is this thing teachable or are you killing it because your just a good trader and you could get the same results trading off the CNBC ticker?' he said "I have one guy already making money with it, so yes. And if I stripped out my gut the returns would be higher". As far as it being a scam, well if I didnt know for fact the guy made 7 figs last year trading I would think the same thing. I`ll keep you guys up. Right now i`m 85% optimistic as its turning into a win win. The fact is that I know the guy from another life so its not like I got this "sweet offer" from craigslist or the local pennysaver paper. Edit -i`ll add that throwing a contract into the mix to trade will be new to me. So i`m sure i`ll be around with a few of those question if I decide to take a shot. Anaconda seems pretty astute with such issues.
Iwant to focus on this. He should not be open to no cap, he should want only no cap. If it is a venture, the traders like you are employees rather than risk backers/clients. Imagine you have the algo and you want more experienced eyes on it. Would you want your traders as clients (when they put cap down) or as employees? Would you want them playing with the algo here & there while doing their own trading or focus primarily on the algo because that is their job?