Backing Traders

This is a discussion on Backing Traders within the First Steps forums, part of the Reception category; Hey Guys, I've been trading for almost 7 years, and decided to retire this year after an incredibly successful year. ...

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Old Feb 13, 2017, 6:34pm   #1
 
6 Posts
Joined May 2012
Backing Traders

Hey Guys,

I've been trading for almost 7 years, and decided to retire this year after an incredibly successful year.

One of things I struggeled with at the start of my career was not having enough backing. This lead me to take excessive risk in order to push for size.

I want to start backing traders myself - and open up investment to these traders to sophisticated investors. Something similar like Etoro - but alot more professional and less scam.

I was planning on doing something similar to mrtopstep trader - but allow more flexibility and NOT charge for people to do the tests.

I also want to allow FX/Equity and Futures.

If anyone has any interest and is looking to get backed and happy to execute through me to provide a track record please send me a PM.

Kind regards

Norman
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Old Feb 14, 2017, 4:20pm   #2
 
5 Posts
Joined Jan 2017
I get suggestion to open my own brokerage company from different people in Linkedin every day
And I am always interested in their motives. As for me, trading is what I do well and what brings me money. Opening a firm takes much more time and has another specifics. So, I wouldn't leave it for such business.
And as far as I understand, you want to do it. But why? If you are profitable with trading, why do you want to change something?
And how much time did it take you to make a business strategy for your future startup?
Haffizz is offline   Reply With Quote
Old Feb 14, 2017, 4:39pm   #3
 
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Joined May 2012
Normanjo started this thread Hey Haffizz,

My main problem with trading was that I was way to volatile as a trader. I've taken huge amount of risk. (My daily PnL swings are between 300k-600k).

That being said - I obviously still trade and will never stop trading. I just plan to stop increasing my size. (Currently I'm trading up to 2000 bunds)

Now that I've had a good run I'm trying to protect my capital by diversifying into different traders. Opening up a new brokerage is not a way to make my income.

Trading is the only thing I have ever understood and want to diversify my risk by finding different traders. I have backed 9 traders which I had poached from different sources. One thing I noticed is that their performance never really demonstrated what I saw on my own risk screens.

Having people trade through my brokerage would allow me to analyse these traders and strategies risk in real time. I can see their execution in real time etc.

There are a million and one ways to trade - and I don't think explanations from pitch decks ever do it justice to fully understand a trader.

Additionally due to the huge amount of round trips I do each day - it's given me very competitive terms which I can pass on.

The cost of me opening up brokerage is almost non exsistent due my business with them already. (Infact I'd be saving money on my RT)

Finally transition into a hedge fund for me. I need to find a good team and wanted to squash to birds with one stones by opening up traders to investors.

Business strategy - have been considering it for half a year now.

My first step was to build a bigger team with more traders and actually give them enough risk to succeed rather than just the general prop shop model. I give them way more risk than other propshops but lower their split to more of a management fee. This sets them up for taking money from outside at some stage.
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Old Feb 14, 2017, 5:34pm   #4
Joined Feb 2002
Why do you want to bother doing this Normanjo? You're an experienced and skillful trader, and you're already financially secure.
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