You know absolutely nothing about this firm. Hell, you know nothing about this business model. Yet you are endorsing it? LOL. Come on, I have nothing against these guys and I wish them well. I really do. I want to see one, just one of these capital allocators succeed. They pitched me and my prop firm for years offering capital and riches. Not a one of them delivered. Most were tiny little allocations that one could have gotten from their Aunt May if they asked nicely enough. And when you say this model is for retail traders I respond with a WTF. Who in their right mind is going to ever make a serious allocation to a small retail trader? Who? Give me a name. Any name. Make one up if you have to. Come on dude, I've been in this business long enough and know how it works.
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You know absolutely nothing about this firm. Hell, you know nothing about this business model. Yet you are endorsing it? LOL. Come on, I have nothing against these guys and I wish them well. I really do. I want to see one, just one of these capital allocators succeed. They pitched me and my prop firm for years offering capital and riches. Not a one of them delivered. Most were tiny little allocations that one could have gotten from their Aunt May if they asked nicely enough. And when you say this model is for retail traders I respond with a WTF. Who in their right mind is going to ever make a serious allocation to a small retail trader? Who? Give me a name. Any name. Make one up if you have to. Come on dude, I've been in this business long enough and know how it works.
These guys will be successful or not, in due time they will be able to fund traders to at least a million dollars or not - only time will answer these questions. I just wished them well and I think from the professionalism and more importantly upfront honesty these guys have shown in their communication, I have a feeling they would be moderately to highly successful in due course of time.
Intention of my post was just to point how this model is different from the other firm in terms of 1) emphasis on sim vs real results 2) initial combine fees vs no initial sign-up fees 3) overloaded commissions vs no overloading on comms 4) forcing a trader to trade within many rules vs giving a free hand to trader to trade his strategy 5) no disclosure of the person behind the firm vs (possible) disclose of the pvt equity that is behind RAPA.
I just wanted to point the differences - thats all. In my view, these guys are legitimate and they do cater to retail traders who otherwise will have no access to outside capital. All the aspiring CTAs will benefit if overtime these guys are able to increase allocations to 1 million apiece from current 100,000.
As my old boss used to say (may be he rest in peace), "At a small enough capacity, return on capital can be infinite. A Mexican guy working at a bodega invests nothing, yet makes 5 dollars an hour."Quote from mickson:
Let us let the quality of the leaderboard do the talking.
I am not saying this model is destined to fail, but I doubt you would ever grow past a micro-shop. On the other hand, in a prop-shop setting I can see how this idea (micro-seeding) could work, given the right in situ risk controls and strict strategy selection.
Quote from mickson:
Let us let the quality of the leaderboard do the talking.
RAPA - I want to criticize you here. In the world of finance, investing and where money is involved, you should have come up with a more serious and balanced answer. SLE raised a valid point. It is just a chatforum but coming up with honest, serious and balanced answers helps in establishing credibility like nothing else. Good luck!
EDIT: But tonight is thanksgiving so I guess everyone is a little drunk.
Their professionalism has nothing to do with their chance of success. The capital allocation game is a tough nut to crack. Look, you are right, this model is different from the TST model. The two are nothing alike. Both models will appeal to different people. At the end of the day, a trader has to be able to make a living doing this. No one is doing this for a school project. Even a million dollar allocation is not going to work! Do the math kid. Say you make a 20% return on a million dollars. That 200k in profits. You get 10% of that or 20k. You also get 1% of the million or 10k. For a total of 30k. That's not going to work. We are dealing with math here, not opinions. You need to have 10 million dollar allocations and up. And who in their right mind is going to give 10 million to a retail trader with a high RAPA score? Come on. This is a serious business. There is a reason why these capital allocators have all failed. I am not accusing this firm of anything dishonest or misleading. They are not the problem nor is their professionalism. It's the business model that is the problem. And btw, the firms that I knew who were in this business were not playing with 13 million or whatever they claim to have, they said they had 100's of millions. But I never saw one serious allocation made. Not one. Draw your own conclusions.
No. The problem is you don't know what you are smelling. I have dealt with these allocators for years. I've heard the pitch 100 times over. There is nothing behind the curtain.
Good post - but top retail traders with around a million dollar will make at least 50% not 20%. So, profits = 500k. Now, they get 10% of profits = 50k + 10k (1% fees) for a total of 60k.
Do consider that some of the top retail traders will make 100% return on 1 million, so that takes their cut to 110k. A step in the right direction for a retail trader with otherwise no access to capital. Just saying.
Total BS. First of all, the percentage of retail guys making 50% is probably .00001%. Two, most serious institutional investors would never go near a guy making 50% returns on the volatility alone. You just don't get it. In the real world outside of ET, people are not trying to make 10,000% returns. They are looking for 10% to 15% returns with low volatility. Especially from an inexperienced retail trader. You think they want to get behind some newbie with no capital shooting for 50% returns? See, you just don't understand how this game works. People who invest in these schemes want a risk adjusted return that is reasonable. The irony is, if you made a 50% return your odds of getting an allocation are probably slim to none and slim left town.
Their problem is that any guy who has the education and know-how to come up with a high return strategy that is capacity constrained can find himself a spot with capital at a real prop firm instead of starting out at a 100k. This is "for pikers by pikers" and it's going to be very hard to leave this M.O behind.
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