Reasons for No Longer as CTA/CPO --- Stop Trading OPM

Many times many ET traders stated on ET they stopped their CTA program after trying a period of time. Sometimes the reasons/ causes were not clearly/particularly mentioned!

What would be the reasons/ causes you could imagine, or according your experience?

Managing money for others suits traders that wont affect their own profitability by the impact of the larger size. Running many systems gets around this, but I know that the extra admin of being a CTA / Fund does put off alot of talented traders.

You don't have to find them, they will find you. That's my personal experience. My broker send a lot of his clients to me because it was financially more interesting as he lives from commissions. They were losing money and I made profits. Wiped out clients don't generate any commissions anymore, so the longer they live the better. I had in no time $7.5 million under management. Within 1 years I stopped trading for clients, closed the fund, and only traded my own money. I never regretted that decision.

If you make less than 100% a year it takes too long before you make big money, so then you will have to trade for clients. Trading for clients also means a lot of expenses and paperwork. Set up a fund, make a disclosure document, send it for approval (which was really horrible), register as CTA, membership NFA and CFTC starting to interfere too.
 
Many times many ET traders stated on ET they stopped their CTA program after trying a period of time. Sometimes the reasons/ causes were not clearly/particularly mentioned!

What would be the reasons/ causes you could imagine, or according your experience?

1. Tired of regulatory hassle

2. Tired of getting fired by clients. Much of managed money is "hot". Investors expect (and in their eyes are paying for) "superior performance for every reporting period". If they don't get that, they're gone.... looking for some other hot manager to handle their funds. (Can't blame them actually, but "outsized expectations" are common.)
 
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