Howdy, I just found this site and was wondering what the general community thinks about getting investors for a system that’s been working. To me it seems INSANE to try and set up a managed account now in the current climate, but my friends and family keep telling me “GET INVESTORS GET INVESTORS!!” etc.
This MT4 expert advisor has been unchanged for about 6 months, so I think it might be time to make the next step. Are there people I should talk to so I can make this happen? Right now it’s making about 7% per month and I don’t even think this is enough to attract most investors who want to see 300% per month in forex etc.
Hey-
I dont know who you can talk to to “get” investors…but I must say that 7% pm is a great return on Investment. Any serious investor ought to give thought to a account that can get 70-80 % per annum consistent.
Did you think about talking to your own friends, colleagues etc if they would be interested in investing with you? I mean if you can get 5-6 people who can put in 10-15 K a piece that is a pretty good starting cap. Unless you are shooting for biiger stuff
slowandsteady I think a few months is not enough time and most investors who are serious are going to be looking for a longer track record. If I had my money in a fund I would expect it to perform from day one. Most people who have there money managed are not going to fully understand the risk and may even hound you daily about the condition of your book. My advice is to not manage anyones money until you have more time under your belt.
Also do you realize how much money it cost to set up such a fund?
here is a portion of this article that answers your question
Who would my investors be?
A forex fund investor needs to be a sophisticated investor who understands the risks associated with the fund. Since the media has generally informed the public of the potential advantages (as well as the risks) of forex funds, and since forex funds cannot advertise, there are many investors who would be interested in forex funds if they had the opportunity. A trader may find that in addition to family and close friends, many colleagues and casual acquaintances may be potential investors.
If you are interested in getting investors for your fund, your selling efforts must be personally directed toward investors who are known to you. Advertising and any other non-personal communications are prohibited. For the forex trader who wants to trade for his family and friends, this obviously is no problem at all. The forex fund is an ideal vehicle to pool the resources of a small group of investors.
Pyramiding - you mean compounding monthly? I plan to do that, but I never trade more than 10% of the equity. Have been crunching these numbers for 3 years now and that’s the only thing that works long term. I figured that 4 months isn’t enough for a track record but I do have 2 people who want to put in 10k immediately. Seems some people have seen +800% and -2000% month to month so 5% for several months in a row is all they can stomach now.
Well, “bigger stuff” I assume would appear magically out of the thicket with a few months of performance on 20k of OPM. I mean most people know somebody who is loaded and looking for new opportunities, but I never really had any rich friends, as rich folks I met never made it themsleves and were jerks, lol.
I guess I was planning to just sit and grind it out for a few years, but everybody I tell immediately starts talking about investors and capital. I’ve been doing this a long time now and think I’m finally on to something. Now Im so worn out that it might be nice to collect a percentage on OPM rather than sweat over my own $ for a change.
Think of it this way. If you continue at your current pace, you will never have to worry about working for someone else. Why worry about OPM if you can make your own. I guess your next goal would be 50%… lol, but that is for you to decide. You are the captain of your destiny.
A bit of advice though, I guess might be in order. I may not be the right one to give this advice, as I have made many breaking gains myself, but I would look into a solid money management program if I were in your situation. I’m not saying you are doing badly, but perhaps could afford to be a bit more adventurous. Not knowing what level of trading you are at, I can’t really make any recommendations, but there are some really interesting tools out there.
Well, 10 years ago I started day trading in college and have been searching for a reliable, automated system ever since. This current plan seems to work with no input from me other than looking at the logs once in the morning and once at night and restarting the server. Given that, shooting for more profit is just not in the cards. We all know what happens when you go for it… you lose everything more often than not.
Just complete the 7th month of continuous profit with this mt4 logic. Getting pretty pumped now. 10% total this time. That makes 5 months on this test account with 2 previous months on a different account. Not bad.
Well, yes. I am just a lowly magazine writer who has been writing this mt4 logic on the side. Was doing it in Visual Basic at GAIN (crooks with zero API support) for 3 years before mt4 became an industry standard. Anyway, my risk capital of 10k or so is nothing compared to earning a percentage on 10 million of OPM.
Sounds like a very modest economic growth package. Sound, but modest.
When someone starts talking about a 100% account gain in under 12 hours, that gets my attention. During the last London Session of the last trading week, that very thing happened to me.
I just caught up to speed on the thread, and notice someone asking about money management. There are many money management tools and views available for free on YouTube. The one I use isn’t there, to the best of my knowledge, as it was written and designed by one of my mentors and is on loan to me.
I am not the creator of the money management program I use, therefore I cannot simply offer it away for free. I am not advertising it for sale, but it is not my place to freely throw this man’s work into the world.
I will say though, that a percentage of the gains of each trade, added to the amount of the principle trade thereby causing the principle to continuously grow, this is a sound financial principle. If you trust in your trading and your tools, put them to work.
I am more than willing to answer any further questions on the subject that do not conflict with the interests of the creator of the money management program I use.
IMHO- What goes up fast, comes back down equally fast. Slow and steady is my style-and 1% to 2% a day is not a bad gain. 100% a day while spectacular will not sustain itself in the long run.
OneTexan, I am not saying the money management tool I use works the way I used it as described earlier this morning. However, when market conditions will allow, one should be willing to use any profitable tool in one’s bag.
Further, this money management tool is based on a per trade increase. If you are a modest trader, use it modestly. If you are a more adventurous trader, use it more adventurously. Or, as I have learned to, use it for what it is without worrying of when is the right time to drop back to a modest level. By all means, until one’s available margin and one’s trading confidence match, conservative views are most definitely advised and should be adhered to.
I just like breaking molds is all. And yes, I have taken loses. In that 12 hour period I took 58 trades on a total of 5 different currency pairs, the first of which lost 40 pips (roughly 2k). This caused me to go back to my tool bag. I did not trade out of the emotion of the loss. I just changed my indicators to fit my current mood and the then current market activity.
I am not saying all of this, nor anything else in any post I make, to make myself appear better than anyone, nor worse. I am a different type of trader than most and I completely understand the risk my style creates. The first losing trade was roughly a 6% account loss.
Please know that I am not telling you to change. I am only offering you an opportunity to challenge yourself at your own discretion.
In no way I meant what you was saying is pedantic-I know if it works then it works.
but see you are in a position to make upto 58 trades in a day-while I will be lucky if I can get 4 trades a day on a maximum of 2 pairs.
Now at 58 trades a day, whatever your risk/win:loss probability be, you have ample opportunity to make up a good expectancy system. While I need to insure whatever I do, I consider the fact that my opportunity is limited.
I would like to invite you to an open conversation in the form of a thumbnail here on babypips that you have seen me use in the past. Would love to get your input on some ideas without posting needlessly on this forum thread… I am going to chat after posting this message.
Hey Chubs- regrets but am heading off to the mall right now, but I know that you hang out at the chat room evenings, I will definitely catch you later.
but dont be disappointed when all I can contribute is a small 10-20 pips making tidbit
