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NY_Hood, I feel your pain. I was a successful position trader (by this I mean holding a position anywhere from days to months) and so I thought I could trade any style. I decided to daytrade and take advantage of the high leverage of prop firms. I did this for almost a year and a half and...

Thank you for taking the time to read this thread. Hope you are well. Here is another update... I received an email a few weeks ago that my primary investor may need to withdraw his funds to finance a home he is having built. He wishes to do it using "petty cash" as opposed to taking out a...

It has been several months since my last post and my intention going forward is to update this thread on an ongoing quarterly basis as I report to my investors. I hope the markets have been treating everyone well in the meantime! When I first started this thread I swore to myself that if it...

Upon receiving entry signals from my model, I used to sell puts to enter a position and then hold until expiration or excercise. If exercised, I would then turn around and sell a covered call. However, over the last eight years I have evolved to purchasing the underlying directly (bypassing...

I hope all of you are well. It has been awhile since I have posted to my thread, so I thought I would provide an update of what has happened since I started my incubator hedge fund. My fund became active mid-August of 2010. I do not want to get into the details of my trading methodology...

Just my opinion, but I think the key to successful options trading is to become as non-directionally oriented as possible, as diversified as possible, and to trade volatility instead of price. Not saying these are the best or only ways to trade options, just that these techniques might help you...

When selling options (during periods of mid to high volatility) the average time held is 45 days. When buying options (during periods of low volatility) the holding time is substantially longer. I want to diminish time decay and have plenty of time for something unexpected to drive up...

There are many different methods to trading and each one requires a different psychological makeup. What I have come to learn through my failures in daytrading (the account blowouts you refer to) is that I am just not a daytrader. However, after trading a longer-term trading style over the...

It amazes me how we seem to lose our civility just because we are on the internet. I certainly have my faults, but since starting this thread I have been called a liar, gay, a cheat, a trader wanna be. I have even been barred from quoting Einstein. :D But seriously, why? What is the point...

Thanks to everyone who has been kind enough to post on this thread and share their knowledge. There has been some very useful information posted and hopefully, other traders (and future hedge fund managers) can benefit from it. Since my last post, I have had some very interesting...

All are welcome to share their experiences if the postings will be of benefit!

Trader3cnd, you are absolutely right! I really know very little about Einstein or physics for that matter. In fact, I made that comment as a joke. Based on your reaction, I may or may not make it as a hedge fund manager, but I definitely won't make it as a comedian... As for my...

Thank you all for your kind comments and encouragement. I debated about creating this thread because I have seen others with the same intention get attacked, but hopefully, it will be prove to be beneficial to all involved. Two additional items I forgot to mention in my initial post pertain...

I sell puts to establish positions and sell calls when I am assigned. As far as the prop firm is concerned, it was geared towards day trading and I am a position trader. They did not like long term exposure that wasn't in a long/short balanced portfolio. They also frowned upon options and...

There are many ways to start up a hedge fund. In this thread I will share my experience with the process in the hopes that it may help someone in a similar situation. As a bit of background, I have been trading about 18 years. I presently trade equities and their options, but I have also...