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Mr. Anthony, You are not a hedge fund. You are a proprietary trading operation. Hedge funds are funded by limited partners that do not have any role in the operational activities of the operation; not by a contribution or deposit by their analysts (otherwise known as traders, by prop shops.) I...

This is not a hedge fund. Displays many of the elements of a scam. At best a highly risky endeavor.

The two most important calculations would be to determine Delta and Gamma. Delta is the ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Gamma is the rate of change for delta with respect to the underlying asset's...

And at some point in your career, the statistical likelihood is that you will snag all twenty hooks at once on a log and get pulled into the water. Re: the other example, when you have a positive expectancy of 100% on all your open trades, it would make sense to use all the leverage available to...

The most obvious reason is related to risk. Using the parameters you defined, the hedge fund manager can trade $40 million without using leverage. The prop trader would have to use 4-1 leverage to trade the equivalent of $40 million in capital. All things being equal, the prop trader incurs at...

They will have you develop relationships with institutional "sales traders" by running a lot of cosmetic trades at full commission. That is, You'll simultaneously buy and sell the opening price of a stock at two different brokers. You will incur a net loss of .04 - .06 per share. You will do a...

I would never attest to the reliability of anyone's testimony on an internet site. However, It is worth taking into consideration that it is possible that the trader in question is referring to the trading of canadian "penny" stocks traded on the bulletin board that were being artificially...

Interesting. I was affiliated for many years with a $5 billion fund, $2 billion of which was domiciled in Grand Cayman. We never experienced any such problems.

Understood. May I ask, was that transaction post 9/11?

Mokwit, Not trying to be adversarial here, but in point of fact I believe the negative connotation you refer to applies to the banking industry and it's spotty history, including some incidents related to the laundering of colombian drug money. The largest fund administrator in the world...

Most reputable offshore fund administrators are based, or maintain a major presence in Grand Cayman (as well as BVI and Channell Isl., and a few other choice locales.) The same holds true for Accounting, Compliance and Legal firms that specialize in servicing off shore hedge funds operated by US...

Not to beat a dead horse, or trying to be adversarial here, but I certainly am not trying to break anyone's spirit. It just seems to me we're dealing with an inexperienced trader with some pretty bad habits who is looking for some sincere guidance. I'm guessing "killininit" is probably a...

In my humble opinion, the "sure trade" referred to above doesn't exist. Every scenario presents a multitude of unique trading choices each of which carries with it it's own probability of success, and none of which could be characterized as a nearly a 100% probability. Any experienced trader or...

Unbiased advise: Save up until you have 4x that amount of capital, and use 1/4th that amount of leverage. You will increase your odds of success by a factor of more than the intuitive four fold. 120k in buying power may seem as though it supplies enough capital to trade successfully, however...

If the market is sending you a mixed message, it might behoove you to step back until the message congeals. Market conditions often fail to provide a propitious trading environment. Sometimes the best trades are those that aren't executed. It's been my experience that the lesson that those who...

I too now prefer to work independently. I do sincerely believe however that my time on the buyside bestowed upon me an education more valuable than any formal one ever could have. In my experience, the founders of the successful mega funds are truly gifted though somewhat eccentric people. I've...

The premise of the question seemed to turn on why highly talented people, educated at the most elite institutions of higher learning would be focused on employment opportunities at primarily highly capitalized, high profile hedge funds such as Citadel, SAC, etc. The leap you make from the...

$10 to 15 Billion in capital is the primary barrier to entry.

You posted the following link at the beginning of this thread: [/url]http://newyorkmetro.com/nymetro/news/bizfinance/finance/features/10426/index.html