Quote from hilojack:
Well, it all depends. Too many variables left unanswered. How many ways does the pie have to be split? Are you bringing significant intellectual capital to the fund? (trading systems) How much will you actually be responsible for? What is the fund fee structure? What are the start-up costs?
As with any start-up operation, times can be "lean" in the beginning. Obviously you hope to do well and grow and gather more AUM.
If you are trading your own systems-- I would look for 12-15% of your P&L in addition to a reasonable monthly salary (which may be treated as a draw).
If you are merely an execution trader using their systems then you are probably looking at a salary/bonus situation. You have to be realistic as costs during that 1st year can be daunting especially if the fund doesn't perform as expected. Its doubtful that they will give you a guarantee-- although it doesn't hurt to ask.
Quote from SWScapital:
hilojack,
Thanks for taking the time to reply.
Its very tough to price something like this because of all you just said. On one hand I need it to be a no brainer to leave my current situation..and on the other hand the start up factor handcuffs early comp.
No physical intellectual capital. The PM and I developed a rapport because of my price action skills. I will be running all the flow/the desk + learning the algos/executing the signals. They are up and running one fund. But have a couple more behind in legal process.
my rough guestimate is 150 base+bonus..am I punking myself or overvalued?
Quote from SWScapital:
hilojack,
Thanks for taking the time to reply.
Its very tough to price something like this because of all you just said. On one hand I need it to be a no brainer to leave my current situation..and on the other hand the start up factor handcuffs early comp.
No physical intellectual capital. The PM and I developed a rapport because of my price action skills. I will be running all the flow/the desk + learning the algos/executing the signals. They are up and running one fund. But have a couple more behind in legal process.
my rough guestimate is 150 base+bonus..am I punking myself or overvalued?
Quote from Hydroblunt:
I fail to see why you think you're so special that you deserve 150k/year for a position that can be filled by hundreds, if not thousands potential candidates.
If I was the PM, I would not pay over 6 figs salary for the position, considering that it is a start-up fund and the current job environment. Lots of buyside traders around looking for a job.
You should be focusing on the bonus and the development & growth within the fund, not a salary that you can brag about to your friends & sleazy golddiggers at the bar.
Quote from Hydroblunt:
I fail to see why you think you're so special that you deserve 150k/year for a position that can be filled by hundreds, if not thousands potential candidates.
If I was the PM, I would not pay over 6 figs salary for the position, considering that it is a start-up fund and the current job environment. Lots of buyside traders around looking for a job.
You should be focusing on the bonus and the development & growth within the fund, not a salary that you can brag about to your friends & sleazy golddiggers at the bar.
Quote from hilojack:
If you read the OPs post, THEY came to HIM. So he is well within his right to ask for whatever the F he wants. i don't think that his guestimate is out of whack considering what he would be giving up to go work at a start-up.
Doesn't matter that there are alot of BS traders out there looking for work, they came to him. So don't hate, celebrate.
Quote from SWScapital:
Thats the key.