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Most agreements that I have seen between market makers and in trading partnerships
are a 50/50 split and the account pays the expenses some times the trader pays the
expenses from his portion. I have seen them go as lopsided as the trader getting 80%
and the investor 20% and the expenses are covered by the partnership. These
percentages are far from absurd and done every day. This is not a mutual fund
arrangement where the operators get there 2, 3 or 5% of a couple million to
billions of dollars. In a mutual fund you don't even have to be successful to
collect your percentage. All you need is good advertising. Ira.
swp wrote:
> hedge fund usually get 20% and they pay all the costs through a 1%
> annual management fee. 50% is insane!
>
> Bando57@xxxxxxx wrote:
> >
> > Just to show traders what is out there..here's an offer I received this
> > week...
> >
> > First off I am a position trader using end of day data..and I have been
> > thinking of switching to realtime and daytrading..holding positions only to
> > end of day....etc...
> >
> > I have been researching different methods...different software
> > setups...different data suppliers...and I came across someone who was looking
> > for a partner.
> >
> > Here's his offer:
> >
> > share the costs of data supply and software..he claims this would be $350 a
> > month..we would have our own accounts but he would do the trading...he would
> > charge me 50 percent of all profits made in my account.
> >
> > Is it just me but isnt that rather irregular...50 percent???.....if you factor
> > in monthly costs...commissions...one or two months of losses i think would
> > severely limit chance of much success...I mean the rate of return would have
> > to be extremely high to make this viable..
> >
> > what is the going rate for managed accounts of this sort?..
> >
> > I just throw this experience out as food for thought?
> >
> > Rick
>
> --
> Steven W. Poser, President
> Poser Global Market Strategies Inc.
> http://www.poserglobal.com
>
> Tel: 201-995-0845
> Fax: 201-995-0846
> Email: swp@xxxxxxxxxxxxxxx
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