CTA Startup

SuperVolatility · Mar 10, 2010

Thanks Aaron,
I understand you are also a CFP, obvisouly I don't see a problem being both CTA, CFP, Series -7 but you see a value or does it give you any edge being both or all?

Aaron · Mar 10, 2010

Quote from SuperVolatility:

Thanks Aaron,
I understand you are also a CFP, obvisouly I don't see a problem being both CTA, CFP, Series -7 but you see a value or does it give you any edge being both or all?

CFP is a Certified Financial Planner, I believe, and I am not a CFP. Perhaps you are thinking of CFA, Chartered Financial Analyst, the designation I do hold. Years ago I was also a licensed Registered Rep with a brokerage firm (which required the Series 7 exam), but that license has lapsed.

There is definitely value in learning all you can about financial planning, investing, regulation, accounting, statistics, econometrics, and taxes. Sometimes it is applicable personally, sometimes it helps with trading, but it never hurts. I even took the H&R Block tax preparation course to better understand taxes. I wasn't interested in working for them at the end of the course, but I do my own taxes and can make informed judgments on when to make IRA Roth conversions and about wash sales and all the other myriad complications in our tax code.

If you are asking if holding the CFA designation helps raise money as a CTA... I'm not aware that it does. I'm able to discuss asset allocation with clients and how managed futures might be appropriate in their portfolio with a knowledge that a non-CFA might not have, but you don't need to go through the exam process to educate yourself and learn everything I know and more.

SuperVolatility · Mar 10, 2010

Aaron - though all/most CTA display their track record on the Website...can they/you choose not to put this info on the web site...but share only with prospectice clients?

heech · Mar 10, 2010

Quote from SuperVolatility:

Aaron - though all/most CTA display their track record on the Website...can they/you choose not to put this info on the web site...but share only with prospectice clients?

Absolutely! CFTC/NFA only regulates the *most* information you can share publicly. There's no minimum at all... except in the context of the disclosure document, which must be shared with all investors before they subscribe to your program.

nihao1234567890 · Mar 10, 2010

Quote from Aaron: .............I even took the H&R Block tax preparation course to better understand taxes. I wasn't interested in working for them at the end of the course, but I do my own taxes and can make informed judgments on when to make IRA Roth conversions and about wash sales and all the other myriad complications in our tax code...........

How/where to enroll such H&R Block tax preparation course?

SuperVolatility · Mar 11, 2010

Quote from heech:

Absolutely! CFTC/NFA only regulates the *most* information you can share publicly. There's no minimum at all... except in the context of the disclosure document, which must be shared with all investors before they subscribe to your program.

So I don't have to put my track record on the Web site? but I do intent to fully disclose it to someone intrested in investing in me.

Aaron · Mar 11, 2010

Quote from nihao1234567890:

How/where to enroll such H&R Block tax preparation course?

If you can't find any information on their website, try again in the fall. The classes are geared toward teaching preparers for the upcoming tax season. Also, your local H&R Block office will have more detailed information if you want to call them.

Aaron · Mar 11, 2010

Quote from SuperVolatility:

So I don't have to put my track record on the Web site? but I do intent to fully disclose it to someone intrested in investing in me.

No, you don't have to put your track record on the website. You don't even need to have a website! If you do have a website, there are certain things you can and cannot say and disclosures you may have to make.

If you become a CTA there are many NFA rules you will need to comply with. There is a lot of reading you'll need to do and it is available on the NFA website. If you aren't familiar with it, I recommend it.

SuperVolatility · Mar 11, 2010

Quote from Aaron:

No, you don't have to put your track record on the website. You don't even need to have a website! If you do have a website, there are certain things you can and cannot say and disclosures you may have to make.

If you become a CTA there are many NFA rules you will need to comply with. There is a lot of reading you'll need to do and it is available on the NFA website. If you aren't familiar with it, I recommend it.

I am starting with NFA paperwork soon. I just got my Series 3 license last week...so one down!

I am still figuring out portion about disclosing personal trading records...which I am not comfortable doing.

heech · Mar 11, 2010

Quote from SuperVolatility:

I am starting with NFA paperwork soon. I just got my Series 3 license last week...so one down!

I am still figuring out portion about disclosing personal trading records...which I am not comfortable doing.

I believe that part isn't optional. I believe if you are a new CTA, but you've prop traded recently, you must disclose those results.