Raise capital for algorithmic trading?

[themickey]

For those with a strong edge, loans are highly recommended as it is win win for all involved and much simpler than any kind of money manage

For longer term stock swing traders, prolly not a good idea due to possible higher risk of margin calls on market down turns, swing traders often run with larger stop levels and if running multiple positions it could get tricky.
I've been caught before selling at the bottom due to a margin call.

 

[cruisecontrol]

I suspect at least 3 out of the 4 are profitable.

Well, you've got a ton of posts so I guess I'll defer to you on your knowledge of the individual forum participants. It also depends what is meant by profitable (profitable every month, quarter, year, how long of a track record etc). But if somebody just dismisses the idea of taking a loan as ridiculous, then I suspect they are not that great at trading. After all the more skill you have the more it makes sense to increase leverage.

 

[themickey]

It also depends what is meant by profitable

Yeah, true, profitability can fluctuate, I think @fan27 is marginally profitable or around breakeven going from his posts, he's a algo coder & trader, @comagnum is an old hand, pretty sure he is very experienced, @M.W. is on my ignore, he's mainly mouth imo, I support myself and wife from trading, I code algo, @globalarbtrader another old hand experienced algo guy imo.

 

[cruisecontrol]

Yeah, true, profitability can fluctuate, I think @fan27 is marginally profitable or around breakeven going from his posts, he's a algo coder trader, @comagnum is an old hand, pretty sure he is very experienced, @M.W is on my ignore, he's mainly mouth imo, I support myself and wife from trading, I code algo, @globalarbtrader another old hand experienced algo guy imo.

Okay, I didn't mean to get personal calling people out, but if you read but if you read my suggestion to take a loan and your reaction is "DEAR GOD NO", this is pretty highly suggestive that you maybe don't have personal experience with the level of profitability where loans make sense... at least that's what it sounded like to me, just saying.

 

[fan27]

Okay, I didn't mean to get personal calling people out, but if you read but if you read my suggestion to take a loan and your reaction is "DEAR GOD NO", this is pretty highly suggestive that you maybe don't have personal experience with the level of profitability where loans make sense... at least that's what it sounded like to me, just saying.

The original comment was about taking loans from family and friends. Not advisable. I rather have them "invest" in the venture where at least they would be made aware they might not get their money back.

 

[M.W.]

Loans never make sense by involving family. That you so vehemently disagree and then conclude that anyone holding such opinion must not be good at trading only shows that your thought process is perhaps a little naive and light headed. Perhaps it's just you who is a little young and does not want to hear those sharing their experiences who have heard of or gone through drama that involved family members and debt.

Can Drama be avoided? Sure, write iron clad contracts and have the family members sign and include crystal clear disclaimers that they might lose all their investments. If they sign such thing with you as someone who easily draws conclusions of others you know nothing about then I suspect they treat their "loan" to you as a gift anyway and in their mind write it off already from the beginning.

Okay, I didn't mean to get personal calling people out, but if you read but if you read my suggestion to take a loan and your reaction is "DEAR GOD NO", this is pretty highly suggestive that you maybe don't have personal experience with the level of profitability where loans make sense... at least that's what it sounded like to me, just saying.

 

[qlai]

I rather have them "invest" in the venture where at least they would be made aware they might not get their money back.

But that changes risk:reward of this! When I take a loan, my upside is (theoretically) unlimited and my downside is defined - like buying an option.

 

[M.W.]

That makes no sense. Your upside is limited by the amount of funding the loan provides and your credibility to service the loan in due time. Your downside is potentially unlimited if you default and fall out with close family members or are forced into personal bankruptcy. Exactly the other way around. Stop reading the stupid literature by a Japanese American greedy guy who does nothing other than writing nonsense books on debt.

But that changes risk:reward of this! When I take a loan, my upside is (theoretically) unlimited and my downside is defined - like buying an option.

 

[qlai]

Your downside is potentially unlimited if you default and fall out with close family members or are forced into personal bankruptcy.

There’s a pre-requisite to actually being consistently profitable and knowing your personal minimum ROI. If you don’t have that, I agree with you 100%

Stop reading the stupid literature by a Japanese American greedy guy who does nothing other than writing nonsense books on debt.

Lol, you keep my Rich Daddy out of your #*%* mouth!

 

[M.W.]

That was funny

There’s a pre-requisite to actually being consistently profitable and knowing your personal minimum ROI. If you don’t have that, I agree with you 100%

Lol, you keep my Rich Daddy out of your #*%* mouth!
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