Need advice...next steps???

[R1234]

Thank you all for responding, and rmorse thanks for taking the time to call and answering all my 1000 questions!

But it seems like I am not ready for prime time yet. However, there are other family members/friends that want me to manage their funds...so instead of going the hedge fund or CPO route. Is there a way where I am legally protected and can charge a fee for managing their funds? I hear IB has a friends/family account setup...has anyone done this before?

Thank you.

yes IB lets you debit fees in friends and family accounts. Just make sure you stay below NFA registration threshold with regards to AUM and # of clients. To protect yourself, you should have a standard CTA disclosure doc and management agreement even though you are not a CTA.

I am curious how long of a track record have you accumulated? What has been your max drawdown? You have a good method if you were trading energy options last year and managed to not wipeout. The diversified futures option guys like White River did not fare well. And another diversified option seller CTA I almost allocated to subsequently went out of business.

 

[xandman]

yes IB lets you debit fees in friends and family accounts. Just make sure you stay below NFA registration threshold with regards to AUM and # of clients. To protect yourself, you should have a standard CTA disclosure doc and management agreement even though you are not a CTA.

I am curious how long of a track record have you accumulated? What has been your max drawdown? You have a good method if you were trading energy options last year and managed to not wipeout. The diversified futures option guys like White River did not fare well. And another diversified option seller CTA I almost allocated to subsequently went out of business.

WRG still has a high ranking at the Managed fund site.. Do you think their 5 year average is mediocre for that strategy category?

Thanks.

 

[R1234]

WRG still has a high ranking at the Managed fund site.. Do you think their 5 year average is mediocre for that strategy category?

Thanks.

their 'stock index writing' strategy is awesome. But the 'diversified option writing' has had significant challenges.

 

[xandman]

their 'stock index writing' strategy is awesome. But the 'diversified option writing' has had significant challenges.

I see. They took a greater than 50% hit and 2 loosing years.

The ranking seems to have disappeared from Altegris. But, Global Sigma Group is still there. Option Writers should have their own asset class ranking...imho. Way different PNL distributions.

 

[SellingNaked]

yes IB lets you debit fees in friends and family accounts. Just make sure you stay below NFA registration threshold with regards to AUM and # of clients. To protect yourself, you should have a standard CTA disclosure doc and management agreement even though you are not a CTA.

I am curious how long of a track record have you accumulated? What has been your max drawdown? You have a good method if you were trading energy options last year and managed to not wipeout. The diversified futures option guys like White River did not fare well. And another diversified option seller CTA I almost allocated to subsequently went out of business.

Hi R1234, The track record that is closes to my current strategy and which has been paying my bills is about 2.5 years old. But, have been in the selling options side of things since early 2007 and learnt some real valuable lessons in 2008 (i.e do not over-extend). That is the reason I am maxing out at about 15%, I refuse to go above a certain risk parameter(s) even if it means leaving money on the table and that has served me well in the energy markets last year and also that I don't exclusively trade any one market, though the S&P is my staple.

Based on my research it seems like I need to be at 20% after fees to be taken seriously. So, that's why I have decided the 'logistical hurdles' are something I need to work on if I decide to pursue that route. Or, trade a few more friends/family accounts who are just fine with the 10%-15% return potential. I hope I addressed all your points.