Traders of today...

Quote from trade-ya1:


I am a global macro trader by trade, however, I do not run a prop. type global macro firm as a primary business (i do have a small day trading operation and of course everyone is going to jump on me and ask that if i don't believe in that then why do i have it. The answer is for the simple reason that i am a business man and i view these traders as gamblers, i am the house. I tell traders that come in straight away, I think you are gambling, however, if you are going to gamble, please gamble in my casino).

Anyway, I run a hedge fund and I hire traders with legitimate edges and extensive track records of exploiting that edge. I give them a six-figure draw vs. 20% of their trading profits and provide them each with multiple millions of dollars to trade. I take 100% of the losses because these are guys that have an edge. We make about 15-20% per year after fees and expenses for our investors. We will likely be running over $500 Million sometime during 2004. If you can make 15-20% per year on a net basis for investors consistently with very little drawdowns (sub 5% peak to trough), you can run Billions also. No need to make the crazy numbers that people on these boards refer to.
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Are they quite different? Which one would be better, and in what terms?

Global Partners Group Strategic Partnership Program: an opportunity for you to align yourself with an industry leader.

http://www.gpholding.com/english/index.cfm

and

Hedge Fund Incubator and Emerging Managers Program

http://www.equitystation.com/eng/cc/p_overview.cfm

:confused:
 
I have just 10 minutes reading this thread and all I have to say is " YOU ARE RIGHT" but when times where good all these firms set the market by trying to steal other top traders.
Compare your statement on traders to Baseball Players. Does anyone who swings a bat or throws a ball deserve $15mil a year!!! Absolutely not, is it there right to demand a no trade clause? No way! but they still do. If they don't produce they are still getting ridiculous amounts of money (See Roger Cedeno)? YES!!!! Owners like Steinbrenner,Wilpon, the dude in Texas, Fox(owns the Dodgers),etc were willing to pay crazy money and thats what happened

My point is, Day Traders never demanded these rates. The firms set the market when they were getting greedy and trying to steal traders from other firms. unfortunately when 2 or 3 firms set the market; in order for other firms to compete they had to offer the same!!!!

Think about it. "It's no ones god given right to do anything, but it is my god given right to ask for everything!!!!" a QUOTE FROM ME
 
Quote from swimmus:

Just a few hundred years ago, no one practiced freedom of speech......
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Socrates did. And I am almost certain that there were many others like him throughout the centuries who were killed off before someone could write about them, or rather before someone who would have written about them ever noticed them.
 
Not only did I try my hand (albeit briefly as part of a venture investment that I was considering into Blackwood Trading which I never made) at day-trading, but I now own a small day-trading firm. So again, sorry, I have a lot more experience in day-trading then you believe. Thanks for your response, nonetheless...
 
The first link that you list is basically recruiting for sales people who want to do capital introduction for hedge funds and then the hedge funds trade through them so that they can earn commissions., etc. The second link is a group that is owned by the first link which is trying to market to new and emerging hedge fund managers offering the promise of capital raising services, operational help, in exchange for clearing and commission business from the fund. Good situation if they can really raise you capital. Doubt they can, lots of charlatons making similar promises who just want to get you in to do clearing and execution business. However, I have no first hand experience (or have ever heard of) this group, so i don't want to rush to judgement. If they deliver what they claim, good situation for traders wanting to become hedge fund managers. Anyway, in summary, first link is looking for sales staff, second is looking for traders that want to build hedge funds.
 
I agree with your post (and not just because you agreed with mine :-) As for traders, I say go for it! Ask for the sun, the moon and the sky! If you can get it, more power to you! The firms are the stupid ones for allowing it. However, over time, just as if baseball were to suddenly fall out of favor with the masses (on a grander scale than it already has), those famed deals would have to fall by the waistside. To traders given the deals that they are being offered today, I say lock it in for life and you will be as happy as a pig in sh*t (if you and your firm are around for the duration). Thanks for your post...
 
Quote from trade-ya1:

However, I have no first hand experience (or have ever heard of) this group, so i don't want to rush to judgement.
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Active Trader
November 2003 Issue
Page 18 & 7

Q

FIRM BRIDGES GAP BETWEEN TALENT, MONEY - Desperately seeking hedge funds mangers

A program started by a financial service company recruits experienced traders to run hedge funds

"Right now, we have too much money out there and not enough qualified managers" - GPG

UQ

:)
 
Great thread...interesting reading.

trade-ya1 any other edges you can talk about besides rebates? Also, when you hire someone I assume the strategy has to be very scaleable. Where/How do you draw the line?
 
Edges are constantly coming and going. Edges that exist today may not exist 6 months ago. I love the saying 'make hay while the sun shines'. Mutual Fund Timing or International Time Zone Arbitrage has been described as the last great true arbitrage. That is true. It's an amazing trade. Yes, it can be done legally without any late day trading or quid pro quo relationships directly with the Mutual Funds. As for scaleablility, I generally wouldn't consider a strategy that couldn't generate profits of at least a few million $. Those strategies generally must be able to deploy at least $5 Million or so. Best.
 
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