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Is this track record good enough to attract new capital
- Thread starter newtraderg
- Start date
A few years ago I switched from a CPO to a CTA for a variety of reasons. It was the best decision I have ever made. My clients accounts are linked to mine so whatever I do in my account get duplicated in the client's account
And as far as raising money from Institutional Investor...Jf they they think you are a good risk then you stand a good chance of landing a client like that. Speak to your broker. He will help you with this. Qualified Investors are out there but they are difficult to find w/o some help. Be prepared to pay 2% of any client a broker lands for you and be prepared to answer some very difficult questons.
And as far as raising money from Institutional Investor...Jf they they think you are a good risk then you stand a good chance of landing a client like that. Speak to your broker. He will help you with this. Qualified Investors are out there but they are difficult to find w/o some help. Be prepared to pay 2% of any client a broker lands for you and be prepared to answer some very difficult questons.
Quote from ElectricSavant:
the1: The accredited investors that I traded for would not tolerate more than 15% DD.
newtraderg: do not trade for friends and family, would be my only advice. You can get a gig, but it might not pay as good of a percentage...Get your 5Y track record and put out some seeds now as an upcoming trader preparing to go commercial..
Good luck to you...are you really sure you want to trade OPM? You seem to have the capital to build yourself by yourself...You will only get 1 or 2 million in the beginning to trade with...maybe 10 million.
ES
Quote from the1:
A few years ago I switched from a CPO to a CTA for a variety of reasons. It was the best decision I have ever made. My clients accounts are linked to mine so whatever I do in my account get duplicated in the client's account
And as far as raising money from Institutional Investor...Jf they they think you are a good risk then you stand a good chance of landing a client like that. Speak to your broker. He will help you with this. Qualified Investors are out there but they are difficult to find w/o some help. Be prepared to pay 2% of any client a broker lands for you and be prepared to answer some very difficult questons.
Curious about the reasons of switching from a CPO to a CTA ? Seems a CPO would be easier to manage than individual accounts.
Quote from intradaybill:
I cannot reveal my tests because I will lose part of my edge. testing for randomness is part of the edge one has, if any.
I have done several tests (for free of course) for several ET members who contact me via pm. Some of them have very good performance with p-values indicating strong evidence against randomness, i.e. they probably have an edge.
Of course, etsts are just that, tests, and they can leak.
Total BS. How can naming a test for randomness possibly weaken your "edge"?
OP, as for whether you can get additional capital, your numbers make it certainly a possibility and obviously worth a shot if nothing else. Would be tough getting a significant amount of money, as others have said, but that's not a terrible thing if scalability is doubtful.
Ah this made me laugh. Generating a p-value is basic statistics.
Snag an introductory stat book and flip to the section on p-values.
Monthy returns are the numbers he presented, and knowing the probability that he achieved those returns with a negative expected return would be one of the most objective ways to determine if it was luck.
Quote from intradaybill:
I cannot reveal my tests because I will lose part of my edge. testing for randomness is part of the edge one has, if any.
Ah this made me laugh. Generating a p-value is basic statistics.
Quote from Visaria:
Can you tell me how you tested for randomness? Also could you give a series of performance figures (you can make them up) which would indicate non-randomness? TIA
Snag an introductory stat book and flip to the section on p-values.
Quote from Visaria:
Actually, what is the point of testing monthly returns for randomness? Doesn't make any sense.
Monthy returns are the numbers he presented, and knowing the probability that he achieved those returns with a negative expected return would be one of the most objective ways to determine if it was luck.
Regarding scalability - Most of my trades are in FX, Gold and Crude.
In FX for example my typical trade is for 500,000. On IB most of the times I see bid/ask for upto 10M(depending on the pair) within a few pips.
I think If I was managing upto10 times what I am right now - about $6M, I can trade the same strategies without any loss because of the increase in size.
Anything more I am not sure, till I have a track record to prove the same strategies work on an account size of $5M-$10M
In FX for example my typical trade is for 500,000. On IB most of the times I see bid/ask for upto 10M(depending on the pair) within a few pips.
I think If I was managing upto10 times what I am right now - about $6M, I can trade the same strategies without any loss because of the increase in size.
Anything more I am not sure, till I have a track record to prove the same strategies work on an account size of $5M-$10M
Quote from jnpn:
Ah this made me laugh. Generating a p-value is basic statistics.
Why do you think so? Basic statistics? Bootstrapping was mentioned in this thread and it cannot be found, at least in a way that can be used easily, in basic statistics books. I do not use bootstrapping, at least I did not for the numbers presented here. Bootstrapping is an overly optimistic test. I would prefer to use MC simulation if I had the daily returns of the system, for each day in the performance period. But this is a lot of work. I do that rarely for my own systems only.
Here a challenge for you since it is so basic for you. Calculate the p-value for these performance results:
2
-1
3
4
-3
2
2
-1
1
2
-3
5
6
4
-2
7
-2
-3
4
7
Quote from newtraderg:
Regarding scalability - Most of my trades are in FX, Gold and Crude.
In FX for example my typical trade is for 500,000. On IB most of the times I see bid/ask for upto 10M(depending on the pair) within a few pips.
I think If I was managing upto10 times what I am right now - about $6M, I can trade the same strategies without any loss because of the increase in size.
Anything more I am not sure, till I have a track record to prove the same strategies work on an account size of $5M-$10M
Your return is excellent. Get yourself a CTA license and have your statements audited by an accountant. Put your record on iasg and if your real time result resembles your past results for at least 6 months you should be able to attract some investors.
The -20% month is a bit ugly... if you have multiple accounts you should probably consider leaving out the worse accounts for that month to "massage" your records a bit. You can mix and match any way you want as long as your records are real... (a good reason why most investors would wait for at least 6 months of real time results)
When I say any way you want I dont mean you can cherry pick the best accounts per month. You can only cherry pick the start/stop period of the accounts instead of by month. Well not unless your accountant lets you do that and still would certify your audit...