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Just for what it is worth 50% is not that uncommon. 20% is common for the
ordinary hedge fund community, but an elite few do get 50%. Floor traders who
apprentice for a professional trader WHO SUPPLIES THE TRADING CAPITAL typically
have a 50/50 split after expenses. Ironically the funds that charge 50% are so
successful, as you might expect, they are almost always closed to new money.
BrentinUtahsDixie wrote:
> My thought is that unless this trader is someone like Richard Dennis, with a
> GREAT track record; I'd run, not walk away from this one. What percentages
> are customary I'm not sure either but 50% has got to be excessive unless
> they are going to pay 50% of the losses as well. It goes without saying that
> you should investigate any trader/manager to make sure they are legit with
> the right credentials etc.
>
> Brent
>
> -----Original Message-----
> From: Bando57@xxxxxxx <Bando57@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Friday, January 01, 1999 12:23 PM
> Subject: DAYTRADING PARTNER
>
> >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
> >
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