Thinking about leaving career at energy trading desk to setup my own desk/clearing account and trading personal capital. Handful of moderate-low risk strategies (systematic, algo-based, etc.) that could provide multiple returns of current salary with minimal "desk overhead" (market data fees, broker commissions, 3P subscriptions, etc).
Has anyone done this in the past, especially on commodity derivs side? If so, what was your experience like getting off the ground? Anything you wish you had known going into it?
Look forward to reviewing any and all feedback.
I dont know anyone that has done it successfully..I think you'll find that if you dont have a business plan with a strategy that only you know to impletement it will be very difficult
When i meet et-bank or fund traders that now say they are trading for themselves i chuckle inside.
take your strategies to a big fund that will pay you a nice percentage of your Pnl and you utilize their capital instead of your own then maybe try it out for yourself after a few years of building credibility
Yeah unless you’re worth several mm I don’t see how this makes sense…like above said taking that strategy to a fund is like buying a call option at a negative premium price so getting paid to do so (base salary + % of book)…if shit hits the fan with your personal money you’re in trouble. There‘s a reason the biggest and best managers don’t just close up shop and run their own money privately…its called scale and its what makes finance so lucrative and you’re giving that up.
Few understand this.
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