A mentor for forming and marketing FX hedge funds

Quote from danger66:

Having worked with financial institutions that fund traders, I think that the managed account model is beneficial at certain times. Some hedge funds like to invest with particular traders; not with funds. They want to be able to monitor more closely what's going on. On the other hand, the fund of funds prefers the hedge fund model. I guess it depends on who your main investors are going to be. It also makes sense [for traders who are successful enough] to use both the managed account model and the hedge fund model to be able to accept a wider variety of clients.
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I think initially a pure SMA type (hedge fund) structure would be a preferable option, mainly due to minimum paperwork and simple operations, particularly when following the business model of Oanda's FXManager platform. My understanding is SMAs are also fairly commonly acceptable by FoFs for the sake of safety of funds and transparency.

For the pool type structure (most likely allowing SMAs concurrently) of hedge funds, it has the unique potential of going IPO when it grows to a certain size. However, too much paperwork, manpower or services from various providers would be required. A pool fund is not my preference for now.
 
Quote from OddTrader:

Currently I'm interested in exploring the possibility of forming and marketing a FX hedge fund. I would like to obtain advices from any potential mentors.

The system for the fund, trading 100% EUR/USD with daily market orders (to be entered during Asia timezone) using primarily a trends reversal approach, is a fully mechanical one, with leverage 4x; MaxDD <-10%; and target returns >+20% pa.

My current plan is to use Oanda's money management platform, called FXManager, therefore it can be fully automated in the future.

PMs are welcome.
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Why would you want to enter before EU starts trading ?
Thanks,
 
Quote from Hombre:

Why would you want to enter before EU starts trading ?
Thanks,
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When trading with my systems based on actual trading results, my own analysis has found no particular statistical evidence for whether or not entering orders before EU would be better/ worse, over a long period of time.

Since I live in Asia Pacific timezone, I don't have to wait until EU starting (therefore more free/ usable hours during the day, without any interruption or serious work in the afternoon when EU starts) for the market orders which could encounter connection problems (other than wider spread ) with the Oanda platform. Oanda's spread would be quite stable and small before EU starts.

In case of any Internet connection problem, I can have more than enough time to fix the problem (or call to the platform's trading desk staff) for entering orders before EU starts.

Besides, possibly, entering market orders and running a FX fund located in Asia timezone would be an advantage (for diversification purpose) for some EU/ US institutions (in case of any big news hapenning in Asia).
 
Quote from marketsurfer:

http://www.turnkeyhedgefunds.com/forex.htm

http://www.greencompany.com/HedgeFunds/index.shtml




to get ya started on the structure, there is more to it than platform/trading strategies to call yourself a fund, but FX funds are the easiest to set up supposedly.


surf
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We don't have to call it a fund at its early stage. Call it whatever you like.

My understanding is probably only a POA would be required initially with individual clients, while the total number of clients is small.

https://fx1.oanda.com/ma/index.shtml
 
I would be interested in how you go about recruiting clients if you go the managed accounts route.

I currently have people that pay me a fixed monthly fee for helping them auto trade Forex, but would rather manage a large fund.

I also have over a years real money results. I don't have a series 7 or anything else but would be willing to pass the tests if it leads to recruiting clients.

The problem with asking questions here is that only 10% of us actually make money trading and out of that probably only 1 - 2% manage other peoples money.
 
I think my concern in managing money for a forex fund, would be the safety of funds issue. It'd be one thing to just trade bad but another if the broker went down with all your clients funds.

So what do you do to protect yourself? What brokers do those of you who are doing this use?
 
Quote from bugscoe:

Any updates on your progress OddTrader?
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Hi B, yes definitely I'd proceed, gradually and slowly. Otherwise too boring. However too much work ahead needs to do now. Anyway good fun though, I think. Thanks for asking.

Quote from bugscoe:

I think my concern in managing money for a forex fund, would be the safety of funds issue. It'd be one thing to just trade bad but another if the broker went down with all your clients funds.

So what do you do to protect yourself? What brokers do those of you who are doing this use?
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Good questions. I'll improve this aspect after starting the program first.


Quote from oraclewizard77:

I would be interested in how you go about recruiting clients if you go the managed accounts route.

I currently have people that pay me a fixed monthly fee for helping them auto trade Forex, but would rather manage a large fund.

I also have over a years real money results. I don't have a series 7 or anything else but would be willing to pass the tests if it leads to recruiting clients.

The problem with asking questions here is that only 10% of us actually make money trading and out of that probably only 1 - 2% manage other peoples money.
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Hi OW

imo, the MA structure due to minimum work involved, relatively, is good enough for a start-up before converting it to a HF.

Marketing a MA program should be much easier than a HF, I would guess.

Publishing/ listing performance data on HF/ CTA web sites would be an effective way to promote the service and recruit clients, according to my previous communications with other ET members with PMs. They are professional money managers for many years.
 
Quote from oraclewizard77:

I would be interested in how you go about recruiting clients if you go the managed accounts route.

I currently have people that pay me a fixed monthly fee for helping them auto trade Forex, but would rather manage a large fund.

I also have over a years real money results. I don't have a series 7 or anything else but would be willing to pass the tests if it leads to recruiting clients.

The problem with asking questions here is that only 10% of us actually make money trading and out of that probably only 1 - 2% manage other peoples money.
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Just PM'ed you. We work with a hedge fund group and and do the due diligence/risk monitoring for all their FX traders.
 
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