Does any serious funding opportunities exist today for real traders?

Hello all.

Does any serious funding opportunities exist today for real traders?

Pay to trade in simulator companies are not what I have in mind.

Thank you.

Johnny
 

Parky

Well-known member
Yes but it is chicken and Egg. If you are a successful trader, with a proven live trading model, then you can get leverage funding which would enable you to take your trading to the next level. But most professional trading groups will expect you to have some skin in the game. If you are a successful trader who cannot/will not back yourself, well then you cant be very confident in your own abilities, so why would anyone else?
 
Yes but it is chicken and Egg. If you are a successful trader, with a proven live trading model, then you can get leverage funding which would enable you to take your trading to the next level. But most professional trading groups will expect you to have some skin in the game. If you are a successful trader who cannot/will not back yourself, well then you cant be very confident in your own abilities, so why would anyone else?

Hello,

Where would I access such a group or funding, then?

I agree that it's a catch 22 or chicken and egg situation as if you're a good trader you might not want to trade external funds. Conversely, without a good track record you probably ain't going to get access to any funds or external capital.

Looking back on my prior losses or lack of success so far, a big part of the equation is that I've been undercapitalized and traded too large in order to make a "worthwhile" return.

For example, if I had $1M in my trading account, I'd be very happy on a personal level if I could generate a 15 % return p.a. Knowing this I could trade a much smaller size and be more selective knowing I don't need to make a killing.

However, with a $10K trading account, a 15% return p.a. wouldn't barely cover the cost of my yearly data fees. As such, it puts you at a higher pressure to perform in order to generate larger returns. Which again could easily lead to "ruin".

Johnny
 

DT

Well-known member
Where would I access such a group or funding, then?
Looking back on my prior losses or lack of success so far...

You probably wouldn't because of the latter.

There is a meme in poker re: some bad players where they wish they had the bankroll to "move up to where they respect my raises", that somehow they could be good at higher stakes games despite all the evidence to the contrary from their actual play.

On what basis is someone else going to fund you if you're not already making money?

Does it make sense for what you're doing vs just taking advantage of the leverage on offer to anyone at various US FCMs?
 
You probably wouldn't because of the latter.

There is a meme in poker re: some bad players where they wish they had the bankroll to "move up to where they respect my raises", that somehow they could be good at higher stakes games despite all the evidence to the contrary from their actual play.

On what basis is someone else going to fund you if you're not already making money?

Does it make sense for what you're doing vs just taking advantage of the leverage on offer to anyone at various US FCMs?
Hello, DT,

Yes, you're right. I don't expect anyone to fund me if I can't provide a good track record which is why I don't see any way moving forward other than trading my own small account.

As wrote in my prior post, though. I firmly believe that a big part of my lack of consistent success comes from trying to make outsized returns trading a smaller account and as such taking too large risks. So, moving forward I will be more cautious and focused on simply making money with what I have and maybe at some point I can produce a track record that someone would pay attention to. That means trading smaller size and collecting peanuts at this point.

Regarding funding, I would/could also consider options where I deposited my own capital as a cushion or first-loss capital. As an act of good faith and insurance for someone who would be interested in funding me.

There are guys less able than me who are managing money and collecting fees, but obviously they're more connected and well known in the industry. Some of them more like salesmen/brokers than actual traders. I know at least one in my neck of the woods who launched a fund without any track record and he's now had (I believe) a real wake up call.

Thank you.
 
 
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