How much would you pay?

VolAlgo1 said:
How much would you pay to a trader that could make you 25% per year?Straight-forward question, but I reckon there will be many different replies.
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"To Hell with 25%"... If you could guarantee investors 10%/yr, you'd have more money to manage than you could handle. Where are you on that? (Yes, I'm mocking your post... :))
 
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[Slightly different take...]

I would recommend to the trader that they be paid without regard to trading costs/commissions or account performance. Account performance should be left to a longer-lensed "Go/NoGo" decision point.

Sure, there are positives and negatives to all the possible mix of "incentive pay" structures that can be thought up, but the one thing that I do not want to see anywhere nearby this set-up, is something that might affect judgment about the best place for the current capital.
 
Not that Straight-forward as I don't know what the bad months and days look like and I'm not looking to make that kind of allocation with material monies. Assuming we are talking about steady income, 10 up months, 2 down, but not more than the up months, I'd look to pay 30% if paid quarterly, 25% if paid Monthly. I'd say that is fair for a good allaoction.

Bob
 
you cant look at the returns only. What is the risk behind the underlying strategy? The return you mentioned is very high. After that decide what you should decide what he deserves.
 
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