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Trying to raise money part 2
- Thread starter zf trader
- Start date
Fund Objectives;
The primary objective to generate monthly income streams through activity in financial markets. Maintaining capital and limiting risk will go hand and hand with the primary objective.
Past Performance;
Forth quarter 2004- 16% gain
First quarter 2005- 36% gain
Methodology;
Income will be generated using proven trading methodologies that take advantage of ultra low commissions and low volatility markets that persist today. These methodologies will have low correlations to traditional investments. Here is a summery of key concepts;
-Always trade from a position of limited risk.
-Use daily predictable increases in volatility to exit positions.
-Trade in multiple uncorrelated markets to diversify away from risks.
-Trade in multiple markets across different time frames of the twenty-four hour trading day.
Management;
I have over three years of direct access and ECN trading experience totaling over $100 million dollars in trade. Being an independent I am free from conflicts that lead to churn and excessive fees and commission. I have also successfully started and ran businesses outside of finance.
Fees;
Management fees will be 20% of monthly payouts.
The primary objective to generate monthly income streams through activity in financial markets. Maintaining capital and limiting risk will go hand and hand with the primary objective.
Past Performance;
Forth quarter 2004- 16% gain
First quarter 2005- 36% gain
Methodology;
Income will be generated using proven trading methodologies that take advantage of ultra low commissions and low volatility markets that persist today. These methodologies will have low correlations to traditional investments. Here is a summery of key concepts;
-Always trade from a position of limited risk.
-Use daily predictable increases in volatility to exit positions.
-Trade in multiple uncorrelated markets to diversify away from risks.
-Trade in multiple markets across different time frames of the twenty-four hour trading day.
Management;
I have over three years of direct access and ECN trading experience totaling over $100 million dollars in trade. Being an independent I am free from conflicts that lead to churn and excessive fees and commission. I have also successfully started and ran businesses outside of finance.
Fees;
Management fees will be 20% of monthly payouts.
Example trade;
The goal of this trade is to profit in the congested overnight market while fully insured against excessive loss by owning a put and call (price insurance against an up or down move) for each future. The contract is the futures on the U.S. Government five year bonds on the Chicago Board of Trade. The goal is to exit all futures at a profit before the 8:20pm pit open and use the volatility of the pit open to exit the options positions (price insurance)at a profit. First 7 calls and 7 puts will be bought at a cost of 1,554.77.A limit order will be placed to sell one tick above the 5:00pm close and at each half tick above there. A limit order will be placed to buy one tick below the 5:00pm close and at each half tick below. Position will be closed by taking profits with a limit order one full tick in the profitable position and re-opened a half tick away from where they were closed. This should cover about the full natural range of the future during the overnight hours.
Closing price-107-215
Call Strike 108-000 (5/64)
Put Strike 107-160 (9/64)
Trading Activity
(Expressed in 1/32 of $1000 or ticks)
1) Buy 21 25) Sell 22
2) Buy 20.5 3) Sell 21.5
4) Buy 21 24) Sell 22
5) Buy 20.5 23) Sell 21.5
6) Buy 20 22) Sell 21
7) Buy 19.5 20) Sell 20.5
8) Buy 19 11) Sell 20
9) Buy 18.5 10) Sell 19.5
12) Buy 19.5 19) Sell 20.5
13) Buy 19 14) Sell 20
15) Buy 19.5 18) Sell 20.5
16) Buy 19 17) Sell 20
21) Sell 3 puts for 10/64
26) Sell 7 calls for 6/64
27 Sell 4 puts for 10/64
The first trade was just after 8pm eastern July 18, 2005 and the last trade was at 10:15 am July 19, 2005.
The maximum risk for the trade was 2101.65 producing a profit of $478.50 or a 23% gain.
The goal of this trade is to profit in the congested overnight market while fully insured against excessive loss by owning a put and call (price insurance against an up or down move) for each future. The contract is the futures on the U.S. Government five year bonds on the Chicago Board of Trade. The goal is to exit all futures at a profit before the 8:20pm pit open and use the volatility of the pit open to exit the options positions (price insurance)at a profit. First 7 calls and 7 puts will be bought at a cost of 1,554.77.A limit order will be placed to sell one tick above the 5:00pm close and at each half tick above there. A limit order will be placed to buy one tick below the 5:00pm close and at each half tick below. Position will be closed by taking profits with a limit order one full tick in the profitable position and re-opened a half tick away from where they were closed. This should cover about the full natural range of the future during the overnight hours.
Closing price-107-215
Call Strike 108-000 (5/64)
Put Strike 107-160 (9/64)
Trading Activity
(Expressed in 1/32 of $1000 or ticks)
1) Buy 21 25) Sell 22
2) Buy 20.5 3) Sell 21.5
4) Buy 21 24) Sell 22
5) Buy 20.5 23) Sell 21.5
6) Buy 20 22) Sell 21
7) Buy 19.5 20) Sell 20.5
8) Buy 19 11) Sell 20
9) Buy 18.5 10) Sell 19.5
12) Buy 19.5 19) Sell 20.5
13) Buy 19 14) Sell 20
15) Buy 19.5 18) Sell 20.5
16) Buy 19 17) Sell 20
21) Sell 3 puts for 10/64
26) Sell 7 calls for 6/64
27 Sell 4 puts for 10/64
The first trade was just after 8pm eastern July 18, 2005 and the last trade was at 10:15 am July 19, 2005.
The maximum risk for the trade was 2101.65 producing a profit of $478.50 or a 23% gain.
There are some grammatical, tense and spelling errors that I would correct before sending out.Quote from zf trader:
Thank for the feedback on my first thread. Here is a little different approach. It comes in three parts; first the fund objectives, then an example trade and finally my resume. Let me know what you think.
Work History
September 2003-Present
Financial Asset Trader, Assets include stocks, bonds, futures,
options and mortgages. Traded over $14.2 million dollars in 2004. I am very skilled a financial risk management.
March-September 2003
Travel, I visited Britain, Mexico and Alberta.
May 2000-September 2003
Entrepreneur, started an appliance, real estate and environmental business.
Owner R&M Rentals- We rent over 100 bar fridges at the University of
Guelph over a 2 week peroid. It is a large sales and logistics effort.
Owner GRIM Environmental Systems- Custom chemical free weed control
for school boards and municipalaities.
Owner Rental Properties- Managing accoadation for 24 students in
Guelph. Duties included arranging financing and keeping tenants happy.
Education
Ontario Academic Credits, FE Madill Secondary School Wingham 1993-1998
Agricultural Economics, University of Guelph 1998- 2003
Interests
Sports including hockey and Australian Rules football
Skills
Understanding finance and how it interacts with markets; this
includes arbitrage, business valuation, macroeconomics and financial
literacy.
Sales skills such as cold calling, large group presentations and negotiating
Knowledge skills such as making pressure decisions based on real-time
information and analyzing large amounts of news on a daily basis.
References Upon Request
September 2003-Present
Financial Asset Trader, Assets include stocks, bonds, futures,
options and mortgages. Traded over $14.2 million dollars in 2004. I am very skilled a financial risk management.
March-September 2003
Travel, I visited Britain, Mexico and Alberta.
May 2000-September 2003
Entrepreneur, started an appliance, real estate and environmental business.
Owner R&M Rentals- We rent over 100 bar fridges at the University of
Guelph over a 2 week peroid. It is a large sales and logistics effort.
Owner GRIM Environmental Systems- Custom chemical free weed control
for school boards and municipalaities.
Owner Rental Properties- Managing accoadation for 24 students in
Guelph. Duties included arranging financing and keeping tenants happy.
Education
Ontario Academic Credits, FE Madill Secondary School Wingham 1993-1998
Agricultural Economics, University of Guelph 1998- 2003
Interests
Sports including hockey and Australian Rules football
Skills
Understanding finance and how it interacts with markets; this
includes arbitrage, business valuation, macroeconomics and financial
literacy.
Sales skills such as cold calling, large group presentations and negotiating
Knowledge skills such as making pressure decisions based on real-time
information and analyzing large amounts of news on a daily basis.
References Upon Request
Here are some questions I would ask:
1. If you say you have 3 years of experience in the management section, why do you only give 2 quarters of performance?
2. What do you mean by ultra low commissions and how do you achieve it? Never heard that term used before.
3. Correct the spelling of summary.
4. I would ask you more about your outside businesses in detail and were they successful.
5. What is the maximum drawdown experienced with this system?
Good Luck!
1. If you say you have 3 years of experience in the management section, why do you only give 2 quarters of performance?
2. What do you mean by ultra low commissions and how do you achieve it? Never heard that term used before.
3. Correct the spelling of summary.
4. I would ask you more about your outside businesses in detail and were they successful.
5. What is the maximum drawdown experienced with this system?
Good Luck!
Please take what I'm going to say as constructive criticism.
The whole style and content looks "naive". You have to plan at least a 8 to 10 page prospectus with historical simulations, graphics, statistical measurements. Statements like "limiting risk", without saying "how" is meaningless. This is the bare minimum without the legalize.
Low commissions - a silly thing to say. The thing that matters is return and the risk you take, not what computer you run on, your commission schedule etc.
20% fees without high water mark - again naive.
I seriously recommend getting professional advice before sending this out.
The whole style and content looks "naive". You have to plan at least a 8 to 10 page prospectus with historical simulations, graphics, statistical measurements. Statements like "limiting risk", without saying "how" is meaningless. This is the bare minimum without the legalize.
Low commissions - a silly thing to say. The thing that matters is return and the risk you take, not what computer you run on, your commission schedule etc.
20% fees without high water mark - again naive.
I seriously recommend getting professional advice before sending this out.
Please take what I'm saying as constructive. Unless you're offering a fund that is registered, you should consider taking these posts down.. they could be construed by the SEC as "marketing" securities to individuals who are neither accredited nor qualified and with whom you do not have a pre-existing relationship -- I only mention this because you used the word "fund".
My advice is get an attorney and look at other offering docs. That way you'll know what you should write/disclose and how you should do it. Otherwise you might want to use private email.
My advice is get an attorney and look at other offering docs. That way you'll know what you should write/disclose and how you should do it. Otherwise you might want to use private email.