Would you fund a trader with a proven record?

[CanOz]

I'm dying to fund or start something where those with some funds available can fund traders that have talent but just need the funding. Sort of like Top Step Trader....but more like an online Prop Shop....how do others feel about funding other traders?

 

[doctorj]

Interesting in theory. I see a number of challanges - how would you confirm their trading abilities and ensure they were aligned (on both the downside and upside)?

 

[CanOz]

Interesting in theory. I see a number of challanges - how would you confirm their trading abilities and ensure they were aligned (on both the downside and upside)?

Darn, you're so fast i actualy looked over my shoulder Dr.J.

There are read only accounts available now...not all up on it yet but i've seen two or three examples.

There would need to be some hurdles....perhaps a good project for some crowd sourcing?

CanOz

 

[So_Cynical]

I can see the positives and know this sort of thing is getting popular, if its all above board and done with transparency i think it can and will work, from a funder point of view i can see the sense in having one of your many eggs in a basket that a trader controls...not much different to handing over money to a fund manager anyway.

 

[tech/a]

Heard of the turtles.

 

[CanOz]

I can see the positives and know this sort of thing is getting popular, if its all above board and done with transparency i think it can and will work, from a funder point of view i can see the sense in having one of your many eggs in a basket that a trader controls...not much different to handing over money to a fund manager anyway.

I expected as much from a punter like you SC....now vote please!

 

[CanOz]

Heard of the turtles.

They didn't have a track record when Dennis and whats his face put them together though...they were selected. Are you saying that after they got their record they attracted more funding?

Did you vote?

CanOz

 

[So_Cynical]

I expected as much from a punter like you SC....now vote please!

I cant find a suitable option to vote for, i don't have the funds to be a funder, and have no interest in trading someone else account....but overall i do like the general idea.

 

[CanOz]

I cant find a suitable option to vote for, i don't have the funds to be a funder, and have no interest in trading someone else account....but overall i do like the general idea.

Fair enough SC, i guess it'll narrow it down to those with funds available to deploy!

Thanks mate.

CanOz

 

[skc]

No is the short answer.

It costs money to run a prop shop (even if just an online one) with issues around compliance / audits not to mention the technical and human resources needed for the selection and management of traders.

Then you got to hit a critical mass of traders (say at least 10 traders across several markets) to make sure the aggregrate equity curve is smooth enough so your capital requirement is sensible.

Then you got to profit share! At 50/50 split - they need to trade twice as good as me for me just to break even.

If there's really a trader out there who's that much better than me trading my own capital after taking into consideration of the above, I think he/she won't be trading with my $2 online prop shop for long anyway!

If I do have a spare $150m and can't trade it all myself - that's a different story.

 

[Julia]

A couple of months ago, I proposed a similar idea to Joe, not with the idea of having anyone make money on my behalf, but with the principle of funding a trading competition with real money. Reason was to draw more interest to ASF as a forum and divert members' attention from some of the repetitive discussions that were prevailing at the time.

The details were undecided (eg whether winners would take profits or whether these would go back into the trading capital).
Not a single response was recorded on the thread.

 

[Bill M]

Why would I fund a trader if they can not be held accountable? Having been part of other investments in the past that were "proven" or Guaranteed that went belly up, I don't want anything to do with anything I can't control, so I voted no bloody way.

 

[CanOz]

No is the short answer.

It costs money to run a prop shop (even if just an online one) with issues around compliance / audits not to mention the technical and human resources needed for the selection and management of traders.

Then you got to hit a critical mass of traders (say at least 10 traders across several markets) to make sure the aggregrate equity curve is smooth enough so your capital requirement is sensible.

Then you got to profit share! At 50/50 split - they need to trade twice as good as me for me just to break even.

If there's really a trader out there who's that much better than me trading my own capital after taking into consideration of the above, I think he/she won't be trading with my $2 online prop shop for long anyway!

If I do have a spare $150m and can't trade it all myself - that's a different story.

Interesting answer SKC, i guess i was thinking you'd be all for it for some reason...

I guess I'm thinking of it from a couple of angles....

1.) there must be a dime to be made from good management here....
2.) there must be a pool of talent out there that's yet to be discovered.

Thanks for the view point.

CanOz

 

[CanOz]

Why would I fund a trader if they can not be held accountable? Having been part of other investments in the past that were "proven" or Guaranteed that went belly up so I voted no bloody way.

Fair enough too Bill, and funding something like this while in your best days would be kind of silly anyways. Unless you had 150 million or something...

Great points of view here, from all sorts.

CanOz

 

[ROE]

havent people learned already when you hand your money to some else.

you place your complete trust on this person doing the right thing and being human temptation to
do the wrong things are greater than doing the right thing and you know how it will end.

human psychology doesnt change that much when it comes to money doesnt matter what century you living in

I vote I do it myself or no bloody way

 

[Bill M]

Unless you had 150 million or something...

That's so funny, if I had that much why would I risk it with someone who doesn't?

 

[CanOz]

That's so funny, if I had that much why would I risk it with someone who doesn't?

a paraphrase on SKCs post Bill...

 

[Gringotts Bank]

A couple of months ago, I proposed a similar idea to Joe, not with the idea of having anyone make money on my behalf, but with the principle of funding a trading competition with real money. Reason was to draw more interest to ASF as a forum and divert members' attention from some of the repetitive discussions that were prevailing at the time.

The details were undecided (eg whether winners would take profits or whether these would go back into the trading capital).
Not a single response was recorded on the thread.

Got the link? I like the idea.

 

[Gringotts Bank]

I'd have to first be able to get over some trust issues. If I could do that, I'd much rather have someone else do the work for me than sit at a screen, so long as the returns were good.

How much you gonna make me Canoz?

 

[Trembling Hand]

Always surprises me at how lacking in entrepreneurial drive this place is. Most cannot get past what they need to control simple business risks let alone think through a process to see the real risk:reward potential (alone the lines of skc reply). Yet they are willing to "invest" in a company they have NO control over that struggle in some dreamers industry with repeated record of ruining investor funds without a whimper of accountability.



Come on guys & gals. Do any of you have the ability to discuss business ideas or is it all about squiggly lines and old disappointing production reports.