Becoming a CTA, CPO, or manage futures

Quote from jgfutures:

fitrol,
great post and congrats on your success. thanks for sharing both the ups and downs, very valuable info.
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Thanks..after todays trading (& i use the term loosely) the ramble made me feel better....
Hope the CPA info helped. Have you got any others??? I'm paying $80 per client per month at the moment and it seems like
money for old rope, especially as i was paying $25 for the same service, complete with mistakes!!!!

peace & profit
 
forgot to say that its still cheaper than Arthur Bell's offer of $125 per account plus $250 monthly fee for CTA biz (Managed A/C's)!!!
 
any of you CPOs out there using a prime broker? and does it make a difference for a CPO whether or not you have a prime broker? thx
 
Quote from fitrol:


....I have been registered as a CTA in the US since Dec last year.
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thanks for sharing your experience...could I ask what type of strategy you use..whether system or fundamental or TA etc..? Also, is there a reason why you went the managed accts route as a CTA vs. pooling the funds to trade one fund acct as a CPO?
 
Quote from lynx2004:

thanks for sharing your experience...could I ask what type of strategy you use..whether system or fundamental or TA etc..? Also, is there a reason why you went the managed accts route as a CTA vs. pooling the funds to trade one fund acct as a CPO?
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I am systematic based, I currently cover the stock index futures, although am about to launch a diversified product as well.

To be honest I didn't give much thought to the CPO route due to what I perceived to be extra regulatory costs/headaches and being non-US based I thought the managed account route would be simpler. It makes no difference from an execution perspective as my executing broker gives up the standard format to each different account, so 1 order from me gets to multiple accounts without me worrying about it.

The attached PDF from this months Futures Magazine gives a little more insight into the program
 

Attachments

Do cash FX money managers need to register to be a CTA? I am not sure about this but I think that they dont. Can anyone please verify? Thanks.

Fitrol> Very nice stuff. Congrats on your success.
 
Quote from jgfutures:


One Q for you Qtip: Who have you used to audit your performance?? I'm having trouble finding a local CPA who has a history of auditing retail commodity accounts. Anyone on the web worth checking out?

ps--studying for the Series 3 will answer some Qs you probably haven't thought of yet.
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I have not hired a service to audit my account. I wan't under the impression that you must do this in order to become a CTA. However, I do think this is a good idea solely based on the fact of credibility.
 
Quote from BGB:

My biggest issue has been the reality that I'm in a position making decent money and a have a family to support. I realize we are in a risk taking business, but I don't want to compromise my family/lifestyle. Have you heard of ways to finance a startup CTA? Is it possible to raise startup money that will pay for the business startup and also for a salary to you for the first couple of years? or is it simply that you must raise enough MUM to live off of at the beginning or have a large savings that you are willing to part with?

Just curious if you or others had any insight into this.
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In my opinion, any business is a risk just like placing a trade. I have not found anyone who will finance a startup unless you have a proven track record with steller returns over a long duration of time (12-18 months). I guess if you already have this, then you may not have these questions.

For those starting out, I found approaching family and friend the first step. Also, try contacting other CTAs who might be interested in moving funds over. Of course, you will need to supply them with enough evidence to warrant this.

For me, I am looking at the big picture. It is difficult in the startup phase, but if you have enough belief in your "strategy", you will make it.
 
Quote from fitrol:

I am systematic based, I currently cover the stock index futures, although am about to launch a diversified product as well.

To be honest I didn't give much thought to the CPO route due to what I perceived to be extra regulatory costs/headaches and being non-US based I thought the managed account route would be simpler. It makes no difference from an execution perspective as my executing broker gives up the standard format to each different account, so 1 order from me gets to multiple accounts without me worrying about it.

The attached PDF from this months Futures Magazine gives a little more insight into the program
More...


Congrats on your accomplishments...!

I think it is fair to say that all of us striving to become CTAs want to have the same success.:)
 
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