Backing as a swing trader

C

Chartsy

Experienced member
Messages
1,129
Likes
84
I normally advocate the higher timeframes; I've become consistently profitable trading them, and think they're a lot calmer; you can plan your trades, where you might adjust stops,targets, etc.

Since December 2010 i've made 51%,with a maximum drawdown of 6.5%, risking 1.5-2% per trade on daily charts (forex),uncompounded with no scaling in or out.

Problem is wtf do I get backing as a swing trader? Unless I find some FSA legal loophole which lets me trade money for individuals without being FSA authorised/registered, i'm going to have trouble being backed; the majority of prop firms seem to hate swing trading and anything which requires overnight margin.

Could ye' just let me know of any ways of finding funding as a swing trader :D
 
Chartsy said:
I normally advocate the higher timeframes; I've become consistently profitable trading them, and think they're a lot calmer; you can plan your trades, where you might adjust stops,targets, etc.

Since December 2010 i've made 51%,with a maximum drawdown of 6.5%, risking 1.5-2% per trade on daily charts (forex),uncompounded with no scaling in or out.

Problem is wtf do I get backing as a swing trader? Unless I find some FSA legal loophole which lets me trade money for individuals without being FSA authorised/registered, i'm going to have trouble being backed; the majority of prop firms seem to hate swing trading and anything which requires overnight margin.

Could ye' just let me know of any ways of finding funding as a swing trader :D
Click to expand...

why not go on zulutrader and earn a fortune that way.with those sort of figures you will soon have huge backing. you also dont need to be regulated to trade other peoples money
 
Chartsy said:
I normally advocate the higher timeframes; I've become consistently profitable trading them, and think they're a lot calmer; you can plan your trades, where you might adjust stops,targets, etc.

Since December 2010 i've made 51%,with a maximum drawdown of 6.5%, risking 1.5-2% per trade on daily charts (forex),uncompounded with no scaling in or out.

Problem is wtf do I get backing as a swing trader? Unless I find some FSA legal loophole which lets me trade money for individuals without being FSA authorised/registered, i'm going to have trouble being backed; the majority of prop firms seem to hate swing trading and anything which requires overnight margin.

Could ye' just let me know of any ways of finding funding as a swing trader :D
Click to expand...

Your options are:

1. Family and friends.

2. Find a wealthy backer through networking (£100k investment +), trade their funds successfully, and look to apply to hedge fund incubators after demonstrating you can replicate your performance managing larger amounts.
 
''why not go on zulutrader and earn a fortune that way.with those sort of figures you will soon have huge backing. you also dont need to be regulated to trade other peoples money ''

Heh, I odn't fancy having 1000+ other traders with the same stops and targets as me, brokers would nail us all; don't you guys remember why dante shut down PS?

You do need to be FSA authorised to trade someones money if they are an individual and not an authorised firm. There are maybe loopholes in that if you don't publicly advertise for funding it doesn't count, i'm not sure about this though.

As for the figures, i've ran 'backtests' for a couple of years back and this year was definitely oddly good; The average is around 40-42% with 10-12% drawdown, even then though i'd like to think my profit-drawdown ratio is on par with 99% of funds.

''Your options are:

1. Family and friends.

2. Find a wealthy backer through networking (£100k investment +), trade their funds successfully, and look to apply to hedge fund incubators after demonstrating you can replicate your performance managing larger amounts. ''

Again you need to be FSA authorised.
 
Zulutrader is fine if you are longer term and have the right broker and again you do not need to be fsa regulated to trade someones elses money in most situations.
 
Chartsy said:
''why not go on zulutrader and earn a fortune that way.with those sort of figures you will soon have huge backing. you also dont need to be regulated to trade other peoples money ''

Heh, I odn't fancy having 1000+ other traders with the same stops and targets as me, brokers would nail us all; don't you guys remember why dante shut down PS?

Oh come on! The market will go where it's going to go, and the brokers can't do sh1t about that unless they're willing to expose themselves to some serious arb opportunities. In relation to TD, he was just a paranoid wreck from sleeping next to his screens and having to use a potty because he didn't want to miss a pin.

You do need to be FSA authorised to trade someones money if they are an individual and not an authorised firm. There are maybe loopholes in that if you don't publicly advertise for funding it doesn't count, i'm not sure about this though.

As for the figures, i've ran 'backtests' for a couple of years back and this year was definitely oddly good; The average is around 40-42% with 10-12% drawdown, even then though i'd like to think my profit-drawdown ratio is on par with 99% of funds.

''Your options are:

1. Family and friends.

2. Find a wealthy backer through networking (£100k investment +), trade their funds successfully, and look to apply to hedge fund incubators after demonstrating you can replicate your performance managing larger amounts. ''

Again you need to be FSA authorised.

You're wrong. Look up "power of attorney" or "PAMM".
Click to expand...

.
 
Also chartsy, your backtest of 2 years is no where near long enough. You need 10 years minimum, particularly if you're on higher timeframes. In fact, you should probably double that again if you're trading dailies.
 
Hi

firstly well done 51% with max draw of 6.5% is awesome. you could give a few hedge funds a call and present your track record. They might throw you a line to trade.


Chartsy said:
I normally advocate the higher timeframes; I've become consistently profitable trading them, and think they're a lot calmer; you can plan your trades, where you might adjust stops,targets, etc.

Since December 2010 i've made 51%,with a maximum drawdown of 6.5%, risking 1.5-2% per trade on daily charts (forex),uncompounded with no scaling in or out.

Problem is wtf do I get backing as a swing trader? Unless I find some FSA legal loophole which lets me trade money for individuals without being FSA authorised/registered, i'm going to have trouble being backed; the majority of prop firms seem to hate swing trading and anything which requires overnight margin.

Could ye' just let me know of any ways of finding funding as a swing trader :D
Click to expand...
 
Also, the backtests don't really count; I trade discretionarily, I just did a chronological, bar by bar backtest ( being honest of course, no point in lying to myself) which is why I didn't bother 'backtesting' any further.
 
Chartsy said:
POA/PAMM allow you to trade someones account, but you cannot derive an income from that.
Click to expand...

Profit splits is how you get paid in this game, boy! PAMM is set up to transfer an agreed % of all profits to your account. What more do you want?? Don't say you want someone to give you a salary because you're up in your spreadbetting account for a very short amount of time, because it ain't gonna happen. Sorry to break it to you.

Also, don't quote sh1t back to me as facts when you obviously know fook all. Have a nice day.
 
VendorExterminator said:
Profit splits is how you get paid in this game, boy! PAMM is set up to transfer an agreed % of all profits to your account. What more do you want?? Don't say you want someone to give you a salary because you're up in your spreadbetting account for a very short amount of time, because it ain't gonna happen. Sorry to break it to you.

Also, don't quote sh1t back to me as facts when you obviously know fook all. Have a nice day.
Click to expand...

So? doesn't mean it's a legal transfer.
Read the user 'Grantx''s posts:http://www.trade2win.com/boards/general-career-advice/27017-trading-other-peoples-money.html
 
Chartsy said:
So? doesn't mean it's a legal transfer.
Read the user 'Grantx''s posts:http://www.trade2win.com/boards/general-career-advice/27017-trading-other-peoples-money.html
Click to expand...

Do you really think forex brokers would offer PAMM if they think their clients are going to get slammed by the FSA?? Until you've got a few £100,000 under management through PAMM, you're not going to have issues from the FSA, so long as there's transparency and contracts (detailing profit splits) drawn up for all parties concerned. These really are worries that you don't need to concern yourself with at your stage.
 
VendorExterminator said:
Do you really think forex brokers would offer PAMM if they think their clients are going to get slammed by the FSA?? Until you've got a few £100,000 under management through PAMM, you're not going to have issues from the FSA, so long as there's transparency and contracts (detailing profit splits) drawn up for all parties concerned. These really are worries that you don't need to concern yourself with at your stage.
Click to expand...

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.
 
You must log in or register to reply here.

Similar threads

C
Trading,FSA, degrees,track records....
Replies
0
Views
2K
Chartsy
C
Alan Farley
  • Article
Swing & Position Trading Day Trading & Scalping Are You a Trend Trader or a Swing Trader?
Replies
4
Views
4K
foroom lluzers
F
C
Where (excluding IB) accepts swing traders?
Replies
0
Views
1K
Chartsy
C
M
A swing trader with daily ideas...
6 7 8
Replies
141
Views
38K
DuCaan
D
Brandon Wendell
  • Article
Swing & Position Trading Swing Stops
Replies
4
Views
4K
ronaldm
R
Top