Looking for experienced traders on profit sharing

U

universaller

Hello everyone,

I have this business idea and would like to have some feedbacks on this.
I would like to allocate $10k on 5 sub accounts under my IB account in which 5 traders will trade them on behalf. Profit sharing will be structured as 50/50 after withholding tax liability. Profit will be paid out on a monthly basis for realized gains / high water mark.

While 5 accounts are up and running, I plan to raise capital to put more fund in.

Please let me know.
Thanks
 
universaller said:
Hello everyone,

I have this business idea and would like to have some feedbacks on this.
I would like to allocate $10k on 5 sub accounts under my IB account in which 5 traders will trade them on behalf. Profit sharing will be structured as 50/50 after withholding tax liability. Profit will be paid out on a monthly basis for realized gains / high water mark.

While 5 accounts are up and running, I plan to raise capital to put more fund in.

Please let me know.
Thanks
More...
What experience do you have in raising capital? What is your plan to do so?
 
You're going to give 5 people 10000 dollars to trade on your behalf? What are the advantages of this? Why not just trade on 1 account with 50000 dollars?
 
I want to build a portfolio of traders who can prove their performance from this account.
The capital size / profit sharing can be adjusted based on the performance.

I'm looking for traders who used IB for at least 5 years and generated a profit - doesn't have to be consistent as I would prefer working with people who lost money and then came back.

My thesis is this - there are many good traders out there who can't raise money due to a high DD, low sharp ratio, no pedigree, no experience in investment banking firms, lack of capital. What I believe is that these stats don't show the true picture of trader's developing skills.

Please feel free to PM me as I already got several messages.

Thanks
 
Trader Curt said:
You're going to give 5 people 10000 dollars to trade on your behalf? What are the advantages of this? Why not just trade on 1 account with 50000 dollars?
More...
Diversification; If 4 traders lose 20% and one doubles their account you are ahead of the game.

Figuring out the tax liability will be confusing.
 
Does it have to be IB? Their platform is really old school to my liking. Not ideal for someone who mainly daytrades options. Unless, supplemented with DAS.
 
Laissez Faire said:
Sounds like a bad deal for an experienced trader.
More...

yep only going to attract budding traders which is really good for them actually, and who knows you may find the real deal. but would bet my bitcoin wallet from 2009 you gonna fail....

i have more to say even people with 100mm have tried this with the best managers in the business and failed hugely. so you are talking about unvetted rookies and trying this, it shows how little you know about the trading industry and it's sad.
 
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