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)?
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.
Heard of the turtles.
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.
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.
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.
That's so funny, if I had that much why would I risk it with someone who doesn't?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?
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.
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