Can't believe there's more than one person who doesn't know what Sharpe is. How do you measure your strategy performance if you don't know the basics?
Sharpe ratio looks at risk adjusted returns. You can take on more risk to increase returns. Can you increase returns without increasing risk? That's what the Sharpe Ratio looks at. Pick up a copy of GATs Systematic Trading for a good discussion of Sharpe.
I don't know what a "third party marketer" is. For me, it's just a way to have an independently audited and verified record of my performance, and to hopefully get an allocation.
A "third party marketer" helps raise AUM for a % of your fees. How do they make money? What do they charge you for?
Okay, yes, this is what fundseeder does. There is no charge for just tracking the account and performance analytics. I have not been offered an allocation yet (as my record is rather short).
Do they charge you for the analytics or only if they raise AUM for you? Or, to set up your CTA or RIA? Where do the fees come in? I can't find that on their website.