Starting a fund / raising capital

Quote from njrookie1:

I am confused by this:

"But surely if I sustain these results for 5 or 7 years, then raising several mil should be no problem? "

Assume you have 1/2 million of capital now. Let us the lower the performance to "only" 50% a year. If you can sustain this level of return for 5-7 years, you should have

from

0.5*1.5^5 = 3.8 million

to

0.5*1.5^7 = 8.5 million

Then you would already have your "several million". If the concern is scalability, then you should never manage OPM anyway.

I do not mean to sound mean. I have gone through similar thought processes again and again. The number just does not work out.

njrookie
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The question of raising capital comes up over and over. Personally, I think it's just a crap shoot at the end of the day unless (like on user posted) you are working buy side and are able to manage $50MM. I am currently going through this same situation and have come to the conclusion that aggressive options trading along with stocks trading under $7-$8 until I am able to accumulate north of $2+ mil then attempt to structure a trend strategy for a couple years to then shop to larger clients.
 
Quote from traderslair:

With these returns there is no way you are looking into managing others people money. With these returns you have your dream life and you are laughing every day.

So cut the crap, post your statements in a screenshot right here. Cut out your account number but your next post should be your statements, or shut up.
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This is a ridiculous statement. Why would you not manage OPM? $300k in profits, after taxes, is not much. And how can you make a statement like that? Maybe, to him, $300k or whatever is not that much money, which it really is not at the end of the day.
 
My natural human tendency to defend myself when qattacked despite there being no apparent benefit in doing so is a weakness I will have to work on.

Attached is screen of YTD gains in my main IB account of 271k. Screen shots can be edited too, I know. I expect this to be the next accusation.
 

Attachments

Quote from cornixforex:

OP, does max. monthly drawdown of 5% mean your worst month finished in red by 5% or something different? Could you please elaborate.
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Yes thats what it means.
 
Quote from atticus:

And an entirely worthless DD statistic.
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Correct me if I'm wrong, but aren't results audited on a monthly basis? So monthly draw down seems meaningful to me. I know peak to trough draw down is probably more meaningful but is something like that included in audited results?
 
Quote from doublet83:

My natural human tendency to defend myself when qattacked despite there being no apparent benefit in doing so is a weakness I will have to work on.

Attached is screen of YTD gains in my main IB account of 271k. Screen shots can be edited too, I know. I expect this to be the next accusation.
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Maybe I am new to forums but I never understand the entire transparency thing that seems to go on. Why is it anyone else's business (unless they are a potential LP) here on the web to confirm another persons trades? I mean what are you cretins going to do validate him by giving a thumbs up, it makes no difference, this is a waste of time.
 
Quote from doublet83:

Correct me if I'm wrong, but aren't results audited on a monthly basis? So monthly draw down seems meaningful to me. I know peak to trough draw down is probably more meaningful but is something like that included in audited results?
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No, and that's generally because (given enough time) peak -> trough numbers will look like what you see in month/month draw-down, anyways. This actually depends very much on the specific trading strategy... if it's any kind of option-based, average-down, martingale strategy, then a sophisticated investor will know to look at intra-month draw-down as well.

Anyways, you don't gain anything from convincing people here. (And vice versa, I don't see how any of us gain anything from "proving" you're a fraud.) Just focus on business.
 
Quote from doublet83:

My natural human tendency to defend myself when qattacked despite there being no apparent benefit in doing so is a weakness I will have to work on.

Attached is screen of YTD gains in my main IB account of 271k. Screen shots can be edited too, I know. I expect this to be the next accusation.
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Why not use IB's analytics to produce a chart of your YTD? You can generate a PTT/MTM chart. But as heech stated, most of us don't care.
 
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