Bonus-Whoring-Funded-Trend-Following-Fund. Opinions please:

[Baulucky]

I want to start a Trend-Following Fund with, at least, $2 Million.

The fund will trade a 100% systematic approach in worldwide stock and commodity markets, with an historically-tested +50% EV per year (CAGR) and a 30% Max. Drawdown.

The fund would be setup offshore and gains would compound tax-free. (The exact rules for US citizens/limitations/etc wishing to invest here are being reviewed now). The setup would guarantee that the managers of the fund would not missapropiate the funds, etc, etc. You'd get monthly statements, etc, etc, by email, etc, etc. all the usual standard stuff.

Enormous risks, etc, etc, blah, blah, limitations of historical testing, etc, etc. Please read disclaimer at the end.

THE PROPOSAL:

For newbies:

I will teach you how to get $5,000 in casino and/or poker whoring bonuses, and you get to invest $2,000-$5,000 maximum invested amount per person, for the LONG TERM of 15 years minimum in the fund, with a provision that you can withdraw your initial investment once the fund has had a 100% increase (estimated to happen between 2-4 years), the rest RIDES for 15 years. (Or you could choose to let it all ride).

For experienced whores: Same deal, but I don't need to teach you anything.

What's in it for me: I keep 25% of the annual profits, if any, as performance incentive. No management fees. No junk fees.

The idea is to get into a high Reward long term situation with an initial amount of money that none of the investors would be sweating over it, as it was acquired thru low-risk whoring and required only some investment of time.

At a 50% yearly return, a $2,000 initial investor, could be looking at roughly $6.7 Million in 20 years. Taxes would be due then, unless the tax laws change, or you change your tax situation. (I could help you deal with this when/if).

I'm looking, ideally, for 1,000 investors at $2,000 each. And only investors that consider the $2K as "psychologically spent". If $2,000 whored-profits means a lot to you, in one way or another, I'd prefer you not to participate.




DISCLAIMER:

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

No completely safe trading system has ever been devised. And no one can guarantee profits, or freedom from loss, or guarantee to limit the extent of any loss trading. Certain market conditions may make it difficult or impossible to limit losses to the amount intended. You can read the: CFTC Consumer Advisory on Trading Systems -

END OF DISCLAIMER

[Reef]

hate to be pessimistic, but it sounds too good to be true.

yes, I read the disclaimer

[Baulucky]

Thanks for your input. It could look better, but I don't wish to use more leverage, 30% drawdown is hard enough.

[lorinda]

Although this kind of thing really isn't for me anyway, I'm curious as to why you need 2 million rather than just using your own $5000.

I'm sure there's some better rate for bulk trading kinda yadda yadda in there somewhere, but I'd be fascinated to hear the actual yadda yadda behind it.

I will disclaim myself by saying that you're preaching to the disinterested if you choose to reply, and you will be merely satisfying my curiosity.

Lori

[Tony Corbett]

[ QUOTE ]
What's in it for me: I keep 25% of the annual profits, if any, as performance incentive. No management fees. No junk fees.

[/ QUOTE ]

If the investment made 50% per year you'd collect $282M in performance incentives. [img]/images/graemlins/grin.gif[/img]

I think one of us messed up the figures because I think your investors collect $617K not $6M+ after 20years.


I think I'll pass on this one.

[Baulucky]

[ QUOTE ]
I think one of us messed up the figures because I think your investors collect $617K not $6M+ after 20years

[/ QUOTE ]

Yes, one of us did mess up the figures.

[ QUOTE ]
If the investment made 50% per year you'd collect $282M in performance incentives.

[/ QUOTE ]

Actually $1,600 M is more accurate.

[Baulucky]

Thank you Lori. I will try to give you a brief answer:

To diminish risk, one MUST participate in many markets, as you do not know in advance which one is going to trend. The methods of trend following, have many small losses and a few enormous wins (these wins are essential to profitablility), if you do not participate in the markets that happened to trend, you are more likely to incur losses.

The size of the contracts and the method used, require for a minimum risk of about $3-$4K per trade. If one wishes to participate in many markets, the BR required to assimilate the flucs with the proposed method is $2M.

Trying this method with $5K is akin to playing 15-30 with an $800 BR.

I hope that satisfies your curiosity.

[aquifex harse]

Thats a BIG mess-up!

[lorinda]

Makes perfect sense, thanks.

Lori

[Baulucky]

Tell HIM about it!.