I have been trading for 2 years. Recently making a huge percentage of profit and am interested in establishing a hedge fund.
I deposited $1,000 for my initial investment and now my balance is $23,259.65 and this is not made through one huge position. I achieved this through trading from a 4hr chart consistently using a mechanical trading strategy. No T/P or S/L. Just entering and exiting positions.
I have no idea how to raise funds in this venture. Lots of who traded the forex market is asking whether they could invest through me. I know this is ridiculous. But recently there are lots of owners of managed forex companies in my country have been arrested for Ponzi schemes that use managed forex as branding.
Plus, there are other owners of managed forex companies have been arrested for trading other people’s money. The reason? Because , it is illegal in my country to manage funds if there is no license from the Indonesian FCA. While people in western countries who have traded successfully can trade other people’s money if they have the trust on those people.
Not so much … they can’t set up “hedge funds” (as you’re asking about) without being licensed, strictly regulated, and all the rest (and certainly can’t advertise for clients without being licensed).
If you can turn $1,000 into over $23,000 over two years, why not do the same with your $23,000 and turn it into over $500,000 in the next 2 years, without needing to worry about clients?
Have you looked at all the “social trading” websites, where a record like yours would quickly attract huge numbers of followers (probably without your needing any licensing/regulation at all - though I’m not an Indonesian lawyer, so don’t take my word for that!) and produce a significant additional income-source for you?
[QUOTE=lexys;727313
If you can turn $1,000 into over $23,000 over two years, why not do the same with your $23,000 and turn it into over $500,000 in the next 2 years, [B]without needing to worry about clients[/B]?
[/QUOTE]
If you want to set up a hedge fund, the cheapest is in malta ($25K) to set it up. It would be much smarter to just stick to SMA (Separate Managed Accounts) to avoid all the auditing and administrative headache. Several brokers offer PAMM like Active Trades and FX Pro. But as Lexy mentioned, someone with your performance does not need clients, focus on your own funds and you can make your first million in less than 3 years.
Indonesian brokers do not have Tripartite agreements unless you are an official Asset Management Institution. If you are on your own, then you can arrange it separately between you and your client (Performance Fees and FMF).
[QUOTE=lexys;727313]
If you can turn $1,000 into over $23,000 over two years, why not do the same with your $23,000 and turn it into over $500,000 in the next 2 years, without needing to worry about clients?
QUOTE]
Yup, this is because I trade major commodity currencies (USDCAD and AUDUSD) and these two pairs price actions’ happened to be not choppy.
The reason I want to find clients is because I want to make an income of annual fees + the performance fee from other people not just from my family members.
I got my friends who want to invest with my strategy. But, the problem is that the government here is really corrupt and there are lots of bad apples that make the industry’s reputation really bad.
The government can just say that I operate an overseas asset management and persecute me for it eventhough I am legitimate and not scamming clients.
I am trading through a foreign broker. All of the local brokers are notorious not just for hunting stops but also not returning client funds upon withdrawal and the local regulator never take action on the members. Not just not taking action, most the local regulator’s (BAPPEBTI) high-ranking-officials are investigated and convicted by the court because of corruption.
Recently, the government also blocks internet access to foreign brokers (such as FXCM, Alpari, etc) with grounds of unregulated investments. According to traders like me and other traders, this is just a conspiracy because foreign brokers have lower to no commissions, lower spreads and regulated by credible government regulators.
To be honest, I hate the government for imposing these controls. If they are blocking access to Cyprus or mauritus brokers, then I have no concerns for them doing that. This thing now becomes a legal scam.