Does anyone know where I can find some some investors to contribute start up capital for a forex hedge fund?

Question

I have developed a proprietary expert advisor (trading robot) that has a 78% win ratio and a less than 20% drawdown. My monthly average is 38% compounded monthly. I'll be a millionaire in two years, with or without investors, but since no one is promised tomorrow...I would like to accelerate this process. Advice?

Answer 1

If you were earning a 38% monthly return, you'd have no problem raising more capital.  Unless, of course, you don't have a long enough history of successful returns or perhaps your "trading robot" doesn't really work.

38% monthly return on even $1,000 makes you a millionaire in less than two years.  So... go to your bank and borrow moeny at whatever rate they'll give you.

Use your trading robot, and send me a portion of the $1 trillion you have in a few years.

Answer 2

nice twisting of the language there!

"38% compounded monthly" = 38% if you assume 12 compounding periods per year.

but anyway -

if you want to start a hedge fund, i hope you have one heck of a pedigree, and a bunch of seed capital yourself.  you'll probably spend (minimum) $250k just on lawyers, and it will take nearly a year to get the proper approvals.  then you can start trying to collect ~$10m (minimum) to get decent rates and execution from your prime.  the first year, just to break even (assuming a 50% annual return) you'll probably need to get 3/30 in fees.

oh, and by the way - if there was any part of that you didn't understand, figure on at least another $100k to the lawyers.

Answer 3

I can talk to you, I too have created an FX program and its in testing stages with real capital. It "only" generates 20% a month but I have access to lots of a seed capital. How long have you traded real money (you will need a years worth of auditied results minimum)? I will email you so if you are interested in discussing this you can have the opportunity.

Answer 4

You might be interested to try out the automated forex robots. You can read more about them on http://ww.automatedforex.info

Answer 5

Put 50% of your winnings into the bank. If you're married, put it in a trust in your wife's name. That advice is actually from Jesse Livermore, the legendary trader who made and lost fortunes in stocks and commodities and killed himself.

I don't know much about hedge funds, but every star I've read about who started a hedge fund had several years of success, not several months, so I doubt that serious money would look at you now. They'd probably expect you to have made several million, not a paltry one.