TRIPHOP, if you remember some time back down this thread I mentioned about not revealing the strategy as it would be used as a core strategy for an Arbitrage Hedge Fund.
What I have shown here is nowhere near what is being done where that strategy is concerned.
I am still in the process of seeking out Seed investors and have 5 interested parties at present. I could place a link to my fund raising site but the moderators here will probably just delete it anyway so I’ll just paste it here.
The purpose is to have a permanent record here so that if the Seed investors do happen to come across this site, it will be on record that the strategy has never been revealed and it’s integrity is still very much intact.
A secondary purpose would also be that there is a very slim chance that there may arise from here an investor that might have enough interest to carry it through too.
Once my Hedge Fund gets along the way, I would need to have a few dedicated traders to allocate to but first they must be able to understand and work options very well.
I know you have indicated that you have no interest in trading options and do only spot, but it does seem that FXDUDE has the potential to be developed into a good options trader. He does have the big picture of the concept and it is just a matter of getting down to the specifics.
Below is my Project Funding request from an Angel Investor site, it is still current. I have not narrowed down the potential Angels yet.
I shall not be making much postings from now except an update of the demo account, maybe once every 3 or 4 days till it time expires on that.
[I]An options arbitrage strategy developed over the past 30 years is now ready for development into a core Strategy for an Arbitrage Hedge Fund. Investors sought for initial seed funding for incubation and developing a track record.[/I]
Capital is being sought for development and incubation of a track record for a sound Options Arbitrage Strategy. Incubation timeframe is 6 months to a year and mainstream sourcing of Investment Capital can begin when track record of 3 months old can be formed.
Initial seeding capital is not used for investment returns as investment capital will be sought only after a track record of the strategy has been formed and investment capital can be sought by private placements from Fund of funds and prime brokers.
The working capital sought is only for the purpose of incubation and will be repaid from the 6th to 12th month as the track record would be in place and investment funds are expected then to be raised.
Seed investors providing funds for the incubation will be provided with 10% return on their funds within a 6 month to a year timeframe and a right to first refusal to private placements on the Arbitrage Hedge Fund created.
Seed investors will have a preferential fee discount of 20% for any placements they decide to have in the Fund.
Anticipated fees for the Fund are 2% annual management fees and a 30% performance fee on sharing of profits.
The Strategy was developed over extensive research and testing in the past 30 years. It is a sound Market Neutral approach and based on mathematical dissection containing almost zero predictive analysis.
The anticipated profit is targeted at 2% per month and the drawdown does not exceed 5%. This is inherent in the Market Neutral and Arbitraged approach that it takes.
The trading risks parameters are very wide in that small, medium and large market swings and volatility does not have a significant impact and ONLY very very large movements will present a risk which can be mitigated without much drama or urgency.
The Strategy presents a very good utility as a core strategy for Hedge Fund management and can match and exceed what is provide for in today’s market.
It is anticipated that, properly developed and presented, this Hedge Fund thus created will compete well and likely corner a big share of the Hedge Fund market.
Funds raised in this exercise will be used mainly for formation of the Hedge Fund Entity and incubation of the trading track record.
Marketing of the Hedge Fund will begin when a track record of at least 3 months has been formed and redemption of the debt created by this exercise will start from the 6th month.
Equity participation is not sought for and it is not envisaged that it will ever be but in the event that an equity participation will be called for, Seed investors from this exercise will have the privilege of first call.
AMOUNT REQUESTED: $5,000,000
MINIMUM INVESTMENT AMOUNT: $500,000
INVESTMENT REASON: Working Capital
I wish you all the best in your trades and may the MARKET ALWAYS provide you all the fortunes and freedom you seek !!!