If it works there is no need to beg for $$$, just trade it yourself. Is this hard to understand ? Why would someone give their money away to a person who does not understand this basic fact ?
How to fund a successful strategy?
- Thread starter smacdtrader
- Start date
I don't think you've thought this through.
Say i have 100k saved and on my trading account. And say I have a strategy that earns consistently 20% a year with a pnl peak to trough ratio of 5:1. That's pretty much better that 99.9% of hedge funds out there. Now, how much do i earn with this? 20k a year, that's 1670 usd / month gross. Is that enough salary for you and you really don't need OPM? Especially when your strategy is scalable without extra effort ?
The only reason these people beg for money is because they don't believe in their script, looking for an easy way.
How much capital do you actually have (or can get)? Do you know SPAN and Reg-T? You can easily lever up with CME products and especially spreads.
How much money do you actually have?
Maybe real prop firms where you have to put up money yourself for the first loss and they provide leverage might be a solution.
Backtest results are worthless to anyone who knows about markets and trading. You need a live track record, at least a couple of years.
Your options are as follows:
1) Trade the system with your own capital. Take out a mortgage, work multiple jobs to save, whatever.
2) Raise funds from friends & family.
3) Trade the system live for a couple of years, with your account linked to a platform like Fundseeder. Obtain an audit or attestation and be prepared to show the trades, etc. Pitch the live results on fundseeder, on ET (there are some pros here with industry connections) and to legit prop firms, and if the system is any good you will attract interest.
Dont know where you are from, but a good statician can get a reasonable job which pays 150-200k p/annum. This should be enough to get started and get the wheel rolling. Think in a decade, not months.
People with good mathematical and statistical background are almost always in demand
Let us be honest. You do not get any money for testing or ideas. But you can get money for cheap on FTMO prop firm for example. You need to pass a test and then you can get up to $400k there and nothing stops from you to make it on several prop firms altogether. After you first payout you can scale it that way, to make your first million with those retail props, or at least couple of 100k so you are independent on your strategy on your chosen broker. There is no other way. Because licensing also cost a bunch of money where you can convince wealthy people but amateur traders or investors when you have your license. Also much time you need to spend there to do prospects and doing sales interviews. But you said you do not have connections so this is by far the worse option. The cheapest and immediately way is doing a prop challenge on FTMO for example. There are also other props around where you can get "additional capital". That is all what you can do. But still enough to do your first 100k at least, then it is much easier for sure.
Totally get that. Even after I found this particular signal and saw it could be profitable, it took me a while longer to figure out how to realistically implement a strategy that passed all my risk parameters.%%
WELL OK;
if you ''know'', then your precise problems are all solved + you need no outside funds.
Say you ''kid''?? IF you ever get in a room with a hedge fund, dont say that\
HINT, Dave Ramsey says finance is 20% math ;
not saying a back test is nothing, nor are we saying its the 20% also. It's sure not the 80%.