How do I start my own fund that trades futures and options?

Question

Early in my investing career I quickly lost $118,000 in every market you can think of. Since then I have learned how to read financial reports, understand the effects of geoploitical situations throughout the world and I have extensively studied technical analysis (patterns, support/resistance, indicators based on oscillations & candlesticks).

I'm a CFP, and have been very successful in the past two years. I have netted a 8637% gain on my personnel investment. I rarely hold an investment more then 20 trading days and quickly drop any investment where I had an incorrect read.

Option trades --
SIRI Dec. 2005 CALLS +16%
RJR Dec. 2005 PUTS -7%
SIRI Jan. 2006 CALLS +38%
MXO Oct. 2005 PUTS +16%
MXO Mar. 2006 CALLS +645%
JCP Jan. 2007 PUTS 13%
SWFT Oct. 2006 PUTS +45%
LCC Oct. 2006 PUTS +73%
EK Jan. 2007 PUTS +144%
PNRA Jan. 2007 PUTS +86%
OMX Nov. 2006 PUTS +40%
OMX Nov. 2006 PUTS +65%
OMX Nov. 2006 CALLS +53%
XMSR Jan. 2007 PUTS +191%
BAB Dec. 2006 PUTS +37%
MTZ Oct. 2006 CALLS +26

Well I have enough capital, I'm sure. But, I want to help others by creating my own fund specifically in options and futures.

Answer 1

Here is what you want:

http://www.turnkeyhedgefund.net/

Answer 2

You can do it just for yourself by using a discount brokerage like Scottrade or Sharebuilder. But if you want to create a fund that other people can buy into, I believe you have to get a brokerage license and work for one of the big boys. I doubt that they would allow you to day trade with their customers though. You should contact an attorney who specializes in financial matters if you want to set up your own shop.

Answer 3

You can easily start your own hedge fund. Most hedge funds are structured using a corporation/limited partnership combination. (The Corporation is the General Partner of the Limited Partnership. Anyone who invests in your fund would then be Limited Partners.)

Depending upon who you wish to target, you may need to register as an Investment Advisor with your state (assets under management of $25 million) or with the SEC (assets over $30 million). You get to choose your regulatory authority if your AUM is between $25 million and $30 million. You can rely upon a number of exemptions to avoid registration, but then you will be severely restricted in how and to whom you may offer interests in your fund. (See SEC Regulation D, Rule 506.)

The compliance effort, even if you remain exempt, deserves a great deal of your attention. If you can pass the CFP, you can probably handle it. Just understand that failure to comply, and even an accidental loss of your exempt status, could result in fines to you and your management company and a right of recission extended to your limited partners.

Answer 4

Well first off, most people who invest in Futures Trading, go with major trading houses or brokerages. People who want to manage and trade for other people are CTA's and work for brokerages. You might want to look into that instead!! But if your heart is set on you own fund and all the red tape and hoops you have to jump though.......Contact the FUTURES TRADING COMMISSION. You should get all the information you need.