Backing as a swing trader

[VendorExterminator]

But have you ever done one?

Well, I've probably performed about 20 or so 10-year backtests in the last 2 months. What do you find so hard to believe about backtests?

 

[VendorExterminator]

I've asked several good traders, as well as an accountant on this forum and they have all said you need authorisation before any profit split arrangement can happen.

Look, you've got bugger all chance of getting backed, so PAMM is your only hope, and trust me when i say this, that the FSA will not give a sh1t about your pittance you'll be making anyway from your "clients".

 

[Chartsy]

Look, you've got bugger all chance of getting backed, so PAMM is your only hope, and trust me when i say this, that the FSA will not give a sh1t about your pittance you'll be making anyway from your "clients".

 

[tomorton]

Backtesting's very important and I never miss it out if considering a new strategy or even a new variation on a current strategy, but I suspect only a % or two of systems are ever 10-year backtested. I think a lot of people say they do 10yr backtests, but they haven't, really.

 

[anley]

I wouldn't worry about the FSA, they're basically useless. Just look at how effective they've been over the past few years. They are though pretty good at having meetings, creating paperwork and thinking themselves very important.

Ultimately though they're really onlu interested in people who have access to their clients capital, ie can steal it. So if the client controls the account, and the money coming in/out, you won't appear on their radar.

But assume you do. What do you think they're going to do, send a swat team round to your office/house? No, all they'll do is say 'get authorised or stop what you're doing'.

 

[Shakone]

Chartsy, only one way to find out for sure. Get your trading statements together and start calling the prop firms.

 

[VendorExterminator]

Backtesting's very important and I never miss it out if considering a new strategy or even a new variation on a current strategy, but I suspect only a % or two of systems are ever 10-year backtested. I think a lot of people say they do 10yr backtests, but they haven't, really.

You're probably right. If, however you're just interested to see one of these backtests, send me a pm.

 

[squall321]

I wouldn't worry about the FSA, they're basically useless. Just look at how effective they've been over the past few years. They are though pretty good at having meetings, creating paperwork and thinking themselves very important.

Ultimately though they're really onlu interested in people who have access to their clients capital, ie can steal it. So if the client controls the account, and the money coming in/out, you won't appear on their radar.

But assume you do. What do you think they're going to do, send a swat team round to your office/house? No, all they'll do is say 'get authorised or stop what you're doing'.

how would the fsa find out even. as far as i can see, if you trade OPM, and you are making them money, everyone keeps their mouth shut and what's the problem?

obviously if you lose all thier money then whoever gets burned is going to try and get revenge and shop you to FSA, like with the whole wasp thing.

 

[tomorton]

The FSA might possibly hear about your scheme as soon as one of your clients suspects you might be paying them less than you should. It is staggeringly naive to go into a business arrangement which places you at risk of -
legal action for money laundering
action by the FSA
being sued by aggrieved clients
having your legs broken by aggrieved clients.

 

[pboyles]

The FSA might possibly hear about your scheme as soon as one of your clients suspects you might be paying them less than you should. It is staggeringly naive to go into a business arrangement which places you at risk of -
legal action for money laundering
action by the FSA
being sued by aggrieved clients
having your legs broken by aggrieved clients.

Wasp ended up being bankrupted over his trading OPM scheme.

 

[Chartsy]

What's a high quality profit-drawdown ratio? If I could maintain above 2-1, say started a CTA up, would that be attractive?