I have developed a great trading system. Now what!!

September 27th, 2013, 12:00 PM

sam028

It's "90% chances of winning trades over the last 3 years", and with small targets and huge stops, it's possible. It's also very doable selling deep OTM options.
I won't say it's very safe, but mathematically possible.

Hello Sam028,

Thanks for the reply

I gave a brief explanation of the strategy to shamas above.

would you have any idea of what to do from here?

September 27th, 2013, 12:10 PM

jonc

how much are you managing in the account which is up 18%?

The accounts are large accounts. I call them income portfolios, targeting 1.5 to 2% per month.

With those strategies, some years ago, i could manage a porfofolio account over 300M EUR - there is not an issue there.

September 27th, 2013, 11:11 PM

First things first... the hedge fund company you establish is going to have to be familiar with and abide by the laws in your country.

You're going to have to determine how scalable your strategies are. In other words, does the percentage return begin to decrease after $x million dollars?
Find books on running/starting a hedge fund.
Find a business partner, consultant, or mentor to help you run the "business side" of the business (knowing the laws, seperation of funds, etc.). I wouldn't advise you giving this person a percentage share ownership in your company, maybe some non-voting shares, but not percentage.
You'll have to run this like a business, with marketing (if allowed by law), doing due diligence of investors finances (if required by law).
All of the above is going to require some employees and some seed capital to get things going.

FYI, and someone correct me if I'm wrong, until recently (or in the very near future) hedge funds in the U.S. traditionally haven't been allowed to do ANY marketing/advertising (some didn't even have websites), but they are required by law to analyze any potential investors current finances to qualify them as a customer.

September 28th, 2013, 10:20 AM

I've read about this. Long story short: hedge funds = only offshore, otherwise fees and taxes will eat you alive.

September 28th, 2013, 03:53 PM

MrYou

First things first... the hedge fund company you establish is going to have to be familiar with and abide by the laws in your country.
[LIST=1][*]You're going to have to determine how scalable your strategies are. In other words, does the percentage return

Yes it is scalable. about 400M EUR were manage with similar strategies during 2004 - 2008 -- now there is more liquidity in efts and option market.

Thanks for the feedback

September 30th, 2013, 09:47 AM

Minds

The accounts are large accounts. I call them income portfolios, targeting 1.5 to 2% per month.

With those strategies, some years ago, i could manage a porfofolio account over 300M EUR - there is not an issue there.

gaining 2% in a month is easy for me,,
If its balace high, we will more easily to get those target..

October 7th, 2013, 04:14 AM

Minds

Yes it is scalable. about 400M EUR were manage with similar strategies during 2004 - 2008 -- now there is more liquidity in efts and option market.

Thanks for the feedback

What`s 'efts'?

October 7th, 2013, 04:20 AM

Minds

Hello Sam028,

Thanks for the reply

I gave a brief explanation of the strategy to shamas above.

would you have any idea of what to do from here?

How does your system account for the compounding?

October 7th, 2013, 10:56 AM

The risk is in options about 60 to 75% risk of the portfolio, depends of the week. The rest in US Stocks, Indices, Futures and ETFs.

Here is short page that explain a little bit. Tell send me feedback if it is not clear

October 7th, 2013, 10:57 AM

tst1

How does your system account for the compounding?

SORRY ETF

I have developed a great trading system. Now what!!

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I have developed a great trading system. Now what!!