How big and long does a track record account need to be in order to be taken seriously?

[convexx]

The allocator is looking for 40% a year payable in quarterly installments probably. After the open the market creates an ATR. The trader is going to trade a multiple of the ATR as RTH unfolds.

As days pass (once every 90 days) the payments are made. The allocator can end the arrangement any time. To do so he closes the account, keeps the initial capital, makes sure the payment rate is met and then he writes a check to the trader as the trader's residue.

As the trader in the deal, my preference is to allow the allocator's profits to be put in play whereby he gets the rate on the profits as well. I do not ever want to pull my earnings since I do better by letting them ride.

f*cking LOL. You are 10Y past onset of Alzheimer's.

 

[Turveyd]

IMHO don't bother, trying to attract BIG money, they'll have you trading at such a low risk then you only get a cut of it, you'd be way better off building your 1K or 10K account into something reasonable which you can make more money off, without the stress of other peoples money!

 

[zbojnik]

IMHO don't bother, trying to attract BIG money, they'll have you trading at such a low risk then you only get a cut of it, you'd be way better off building your 1K or 10K account into something reasonable which you can make more money off, without the stress of other peoples money!

I agree.

 

[1245]

EPIC...excellent responses. Very accurate.

 

[Epic]

I like Salem Abraham, he's very transparent. There doesn't seem to be a law against posting performance - although with how crazy the regulators in the US are, one never knows.

There have always been laws against posting performance on a public forum/website in the US. It is considered "general solicitation". We are talking about Rule 506 of Reg D, Investment Act 1933 and the Exchange Act 1934 also applies. These regulations are common knowledge in the industry.

Virtually every hedge fund operates under a Red D exemption so that they don't have to register as a public security (mutual fund). Almost all of them rely on rule 506, which exempts from registration so long as they don't engage in general solicitation. It isn't well defined but guidance has been issued which prohibits;

• "advertisements published in newspapers and magazines, communications broadcast over television and radio"
• "seminars whose attendees have been invited by general solicitation or general advertising"
• "other uses of publicly available media, such as unrestricted websites."

That has changed quite a bit in the last couple years with the JOBS Act. It lifted the ban on general solicitation provided that the issuer "take reasonable steps to verify the accredited investor status" of all purchasers. Most have opted not to advertise still because "reasonable steps" has been defined as things like collecting tax returns and financial statements from all investors. It's a big hassle and investors don't like it, so most funds still don't advertise. Go to 100 hedge fund websites, and mainly you'll just find a landing page with contact info, maybe you also see some press releases and research articles. In order to see performance you'll need to either fill out a form or contact the firm directly for a password or email.