performance history, net of fees

[Stok]

Quote from heech:

I'm too small to pay a % of assets... they'd go broke.

I pay a fixed fee, although some unexpected surcharges were added on the last billing cycle at the end of the year.

Ha. Well, I plan on talking with them soon for a CPO. When I talk last time to them, it was a fixed fee (this was for an equity/option fund) for audit/K1's and it would not be a % of assets no matter how big we got (from what I remember). I left the organization 6 years ago anyways...so been outta the loop.

 

[heech]

Quote from Epic:

I'm assuming that you wouldn't be willing to give a ballpark cost for fixed fee service...?

I also don't pay % of assets as the audit requirements are much different for me. Mine really charge me based on trade frequency. More trades equal more work for them. But they aren't as close to the top rung as your guys.

RKCO never told me to keep the quote to myself, and I've actually talked about it before on this site.

I'm paying $25k/yr for audit and tax... but there was an additional charge for state filings that we didn't realize would be required.

 

[Epic]

Quote from heech:

RKCO never told me to keep the quote to myself, and I've actually talked about it before on this site.

I'm paying $25k/yr for audit and tax... but there was an additional charge for state filings that we didn't realize would be required.

thanks.

$25K isn't bad, I've heard much higher from the "big 4". I think you personally have done a great job demonstrating that a top pedigree, big 4 audit, and $25MM seed, aren't required to make a go of it.

Luckily though, my CTA doesn't face the audit requirements that your fund does.

{edit} not that you don't have the pedigree or capital, but rather that you've done well in documenting and proving the common misconceptions on this board. Class Act

 

[Epic]

BTW Heech.

Some time ago I believe you said that you were considering a CTA due to frequent request. Admittedly, that is one of the two main reasons for me choosing a CTA.

Did you ever follow through on that consideration?

 

[heech]

Quote from Epic:

BTW Heech.

Some time ago I believe you said that you were considering a CTA due to frequent request. Admittedly, that is one of the two main reasons for me choosing a CTA.

Did you ever follow through on that consideration?

Yes and no? I *am* open to it (and have proper registration @ NFA), but only at a pretty obscene level: $5 million+.

For what I'm doing with my automated trading, I decided anything smaller just doesn't justify the paperwork. I'm trading... 12000 RT a month with my $4.5mm in AUM. Trying to track down/allocate trades is just too much work.

 

[Epic]

Quote from heech:

Yes and no? I *am* open to it (and have proper registration @ NFA), but only at a pretty obscene level: $5 million+.

For what I'm doing with my automated trading, I decided anything smaller just doesn't justify the paperwork. I'm trading... 12000 RT a month with my $4.5mm in AUM. Trying to track down/allocate trades is just too much work.

Whoah!!! 12,000/month. Yes, that would be maddening to manage. You can make it simpler though, and I don't think that $5MM+ is obscene. I get at least 10X the number of potential clients with a CTA than I would've with a CPO.

But we are in different worlds. If I get 500rt/month I'm exhausted and I've probably made a killing. I also only trade 1 contract per $50K AUM. So $5MM only means 100 contracts.

 

[heech]

Yea each of my trades is only 2-5 contracts... We are literally talking 100-300 trades a day. Major pain in the butt for every additional account.

My FCM should love me, right?

 

[Epic]

Quote from heech:

Yea each of my trades is only 2-5 contracts... We are literally talking 100-300 trades a day. Major pain in the butt for every additional account.

My FCM should love me, right?

I'm just trying to figure out how you overcome the commissions.

At my trade rate I lose about 5-7% of profits to commiss. And I have about a 9:1 win:loss rate. You are either almost always right, or your profit targets are higher than mine. Or you're in Forex?!?

 

[Epic]

LOL... Before coming on board, almost every client asks, "So, how exactly do you do it?"

My answer:

"Well, first, the program has both a systematic and discretionary element to it.... blah.....blah.....blah.... for 5 more minutes."

Heech's answer:

"Beat the market into submission! Any more questions?"

 

[heech]

Quote from Epic:

I'm just trying to figure out how you overcome the commissions.

At my trade rate I lose about 5-7% of profits to commiss. And I have about a 9:1 win:loss rate. You are either almost always right, or your profit targets are higher than mine. Or you're in Forex?!?

I guess we're really in different worlds!

Are you paying insanely high commissions? I'm paying (all-in) around $3.60/RT. If you're paying 5-7% of profits at a comparable commission level... then your average trade profit is only about $50-60 per contract?