ok, man, cool.. i still would lean on hiring that out instead of trying to learn to program it yourself... but if you like work----- good luck!
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- Thread starter Chuck Krug
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ok, man, cool.. i still would lean on hiring that out instead of trying to learn to program it yourself... but if you like work----- good luck!
I don't know how accurate this is, but someone sent it to me regarding how this program works:
The basic structure of the program is as follows:
 The manager contributes an agreed‐upon amount of risk capital that sits in a
managed account.
 This capital is then matched 9 to1 by the__institutional anchor â so a $1MM
contribution by the manager would result in a $9MM contribution by the
institutional anchor.
 Each month the manager receives 55% of the gains generated by the combined
managed account.__The institutional anchor keeps the other 45% of profits.
 For profitable months, the account is marked‐to‐market and both parties are
paid their portion of the profits â without disturbing the positions that are being
held at the end of the month.
 The managerâs capital sits in a âfirst lossâ position during any months when
losses are posted.__In subsequent months the managerâs capital sits in a âfirst
gainâ position as well â receiving all gains until losses are made up.
 This arrangement is designed so that the institutional anchor only realizes a
profit when the emerging manager__makes money.
Yeah that's the standard and was identical to the Alchemy Ventures PDF file I posted.
They use boiler plate marketing/documents?
All the capital allocators seem to be using the EXACT same boiler plate. Change a few words here or there but not a lot of money is being spent on legal. LOL.
So how does the leverage scale up and down with the trades... how could you find the risk controls... ie. How many options can I buy and sell .. what about when you have a good long short portfolio with determine risk.. IE a big options book... what are the changes in margin related to these
We aren't software developers. I have some rusty programming skills but haven't used them in nearly a decade. We are putting significant intellectual property into the venture, guiding it and shaping it along the lines of ideas we have had and conceptual analysis ideas we have been thinking about for years, in respect to trading tools that either simply aren't out there, are not out there in the form we really want, or are currently only available through custom proprietary platforms. That doesn't mean messing around with code. Someone else is handling that.
Once again, appreciate the friendly concern, but there's really no need to worry. We're big boys. We eat our wheaties and do our homework. We've thought of all the "hey wait here's why it might not work" elements and 3x times more besides. We're a little bit smarter than that. Everything is going to be ok.
Apples and oranges. A significant aspect of what we're doing, they don't touch at all. And we already know enough about data sources for that not to be a worry. And they can't be too dominant in the marketspace anyway if I hadn't even heard of them before now.
Thanks for the concern though
