Need advice...next steps???

[xandman]

rmorse,
Just sent you an email.

globalarbtrader,
I have no idea. That is why I wanted to use an 'incubator fund' and trade my own money for a year or two and have it audited and hire whoever needs to be hired to get all the necessary metrics in place.

But the question is, should I go down that road or just trade my accounts and 'lead the quiet life'. On one hand I want to see if I can 'make it' but from reading all the accounts of people on here seems like trading other people's monye is more heartache than it is worth. (?)

Most of the discouragement is really for the guys with a reg T account and not aware of what they are doing/getting into.

Agree. Being "worth it" is a big grey area. For guys like you who are doing a little bit of "size" with a strategy that is not capacity constrained. I would say: "Go for it". ( And, share your experience and insights with us.)

 

[xandman]

Could you please expand on "...running a general strategy through a specific venue."?

Using futures vs stock options for a premium seller. Different regulatory bodies. Who's the easiest for compliance and administration? Market access for pseudo market making? Might be a pipe dream that cannot be implementable. Cost structures. Capital introductions etc etc

That's Bob's area. My head still spins when we discuss the possibilities, but he can simplify things for you. Take notes. ( That's also why I was asking for the White papers.)

 

[R1234]

One thing to note is the blowup potential in the strategy you are doing.
Not saying you will blow up but that niche is littered with CTAs who had good multi year runs only to blow up and shut down after an abnormal vol event. We see this in the equity indexes of course. But other assets present problems too - like premium sellers blowing up last year in CL options. Something to think about before embarking on all that effort and expense to form a CTA and dealing with the regulatory headaches.

 

[xandman]

Roger. Exit strategy is smart planning in any business. Even if not under adverse conditions. And in this business, even more likely.

 

[SellingNaked]

One thing to note is the blowup potential in the strategy you are doing.
Not saying you will blow up but that niche is littered with CTAs who had good multi year runs only to blow up and shut down after an abnormal vol event. We see this in the equity indexes of course. But other assets present problems too - like premium sellers blowing up last year in CL options. Something to think about before embarking on all that effort and expense to form a CTA and dealing with the regulatory headaches.

Yes R1234, you are right...that is why I am hesitant to shoot for higher than 10-15% a year, I tend to err on the side of 'staying alive to fight another day'. The years I got above were just a result of trade management, wasn't really shooting for 15%+ returns.

@xandman, thanks for participating in this thread and making it a success!

 

[xandman]

#blush

I am the greenest guy among these posters. But, I do my research and I bug rmorse constantly.

 

[rmorse]

#blush

I am the greenest guy among these posters. But, I do my research and I bug rmorse constantly.

You are not bugging me at all. Happy to help when I can.

 

[wwatson1]

Wtf has this site come to

 

[SellingNaked]

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.

 

[xandman]

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.

Thank you.

Never admit to that. Say: " I need to take care of logistical hurdles." Your obviously in the money raising seat.

Anyway, we have numerous threads on Friends and Family accounts. You should come to the conclusion that every State is unique and you need to find someone who knows about your State regulations.