Trading using someone else's funds

[Harrison]

Hello. I've been quite successful so far in my trading endeavors. So much so that I've been offered a decent amount of money to trade with if I split the profits 50/50. I just have some questions on how I can go about doing this carefully.

How can I ensure that I am keeping track of when I am using their funds and when I am not? I guess I could always open a second trading account which would keep the funds separate, however, this would be a bit of a pain having to sign in and out of multiple accounts.

If I added the funds to my own account how can I keep track of profits? Could I calculate the percentage of what the newly added funds are compared to my current funds? And if I need to cash out or share profits in the future, I would take that percentage of my total funds and remove them?

For example, if I currently have $10,000 and am loaned $3,000, bringing me to $13,000, could I take the percentage of the loan (23%) and multiply it by my ending balance? So,if a year later, my ending balance is $37,245, would taking 23% of this balance ($8,566) provide me with the correct amount of funds? Then take the 50/50 split profit amount ($4,283) and send it back to the loaner? Does my math seem to add up?

Thanks.

Edit: Just so everyone knows, a close friend of mine has asked me to trade with some of their money. They have witnessed my trading and know that I am profitable. It is NOT a random person as others have suggested on this thread. Either way this does not matter and I would like to keep the discussion on topic.

 

[Howard]

Well why the hell do you want to accept the loan if you are such a 'self proclaimed good trader' when you can easily trade with your own funds and grow them to trillions ( as you are a good trader). Why split profits when you can have it all ?
The answer to my question lies in the very fact that there is something shady about you (may be you want to lure some newbie to contact you for trading).
How come you be a good trader when you do not even know how to divide profits ( simple percentage math) ?

 

[Cristian]

Well why the hell do you want to accept the loan if you are such a 'self proclaimed good trader' when you can easily trade with your own funds and grow them to trillions ( as you are a good trader). Why split profits when you can have it all ?
The answer to my question lies in the very fact that there is something shady about you (may be you want to lure some newbie to contact you for trading).
How come you be a good trader when you do not even know how to divide profits ( simple percentage math) ?

You've hit it right in the spot!!! As a proclaimed trader this maths shouldn't be a problem or else I have no idea how you got your profit in trading

And even if someone was to provide funds then there's no guarantee that 1st you'll not run away with the money and 2nd that you'll even make any profit and 3rd whether you'll even share that profit. Brokers are there for a reason and you can't act all on your own.

Warning to the 'greedy' ones on here reading this ridiculous 'post', don't give your money to this person or if you're thinking about it at least have some collateral or assurance in place before engaging in business, though this is not something many people would recommend.

 

[Ahmir]

Talk to them about the percentage, not a good idea to just follow our suggestions to you how should be the dividend. Both parties should agree to the deal, win or loss. Since you are the one managing their money, try to include your "talent's fee" to them.

However, I don't know why these people offered you to trade their money. Do you mean they witnessed how good you are? Who are these? Friends or random people? I just hope they are really the ones who offer you to trade their money and not the other way around as I found it suspicious.

 

[Jair]

This I guess will just bit more little tricky! Why?

Maybe you are putting your main account at risk because the exchange platform that you have been used might be detected you using multiple accounts which are most trading platforms strictly against their rules.

Just a piece of suggestion, let them register to the exchange site you used under their name and ask them the login details including the fund that they want you to use. If that is a 50/50% dividend share on profit, that is very easy to do the math if it is separated.

I don't understand the loaned part. If you separate that fund, there no more calculating the percentage.

 

[Seven]

You can use portfolio tracking apps through connecting your account's API Key and you will be able to see the percentage profit or loss you have made in real time. Apps like 3commas, bituniverse, blockfolio are reliable.

So if you combine the whole loaned amount from your friend to yours. What you will be looking at would the percentage profit or Loss you would have made from the time you generated and integrated your account's API key to the App. So all you have to do is take a half of that percentage profit/loss from the loaned amount.

Eg If a total of 13,000 (where 10K is yours and 3K is your friend's) increases by 50% in profits as shown by the App. All you do is determine 50% profit of $3k which is $1,500 (you take a half which is $750)

 

[Dhruv]

There is nothing wrong with trading with trading with other peoples funds; the reality is that are you professional enough to make profits and pay the legally documented roi such terms demand ? If someone elses money you mention is borrowing; then it is a wrong motive as you cannot borrow to trade. Earn your capital, and trade with perfection and peace of mind.

 

[Aayan]

How can I ensure that I am keeping track of when I am using their funds and when I am not? I guess I could always open a second trading account which would keep the funds separate, however, this would be a bit of a pain having to sign in and out of multiple accounts.

I was laughing when I read that you are a successful trader but you still cannot figure out how to ensure whose funds are you using when trading.

Anyways I will tell you how it is done. Suppose you have 10k USD which you borrowed from them and 10k USD of your own. Now your capital is 20k and any trade you make is combined of both of yours money. For example you made a 2k trade and profited $50 then you can't say you used your own funds and pay them nothing, that is not how trading works. You need to them pay 50% fro your profits from each trade as you mentioned you have agreed for 50-50 cut for each individual.

if you really think you are professional you need to work on your basics man otherwise you might be just sort of lucky in trading and false believing that you have mastered it.

 

[Yadiel]

I was laughing when I read that you are a successful trader but you still cannot figure out how to ensure whose funds are you using when trading.

Anyways I will tell you how it is done. Suppose you have 10k USD which you borrowed from them and 10k USD of your own. Now your capital is 20k and any trade you make is combined of both of yours money. For example you made a 2k trade and profited $50 then you can't say you used your own funds and pay them nothing, that is not how trading works. You need to them pay 50% fro your profits from each trade as you mentioned you have agreed for 50-50 cut for each individual.

if you really think you are professional you need to work on your basics man otherwise you might be just sort of lucky in trading and false believing that you have mastered it.

Also, do you really believe that someone would easily throw up some bucks for him to handle out trades for other people? No one on this forum will surely consider it out specially a self-proclaimed
one without even minding on showing of his statistics or profit percentage on his trading account. Do you really think that someone will easily believe on that without showing of proofs?
Verbal thing wont be enough.

In mention about dividing profits then it would be better if you do make multiple account and since he arent dealing with 20k usd or more then unverified account will be enough for that.
It cant be blocked nor violate platform rules so that you wont really have some headache on how to calculate between profits but as a trader this is just a basic thing to be done.

@OP, are you really a trader?

 

[Jermaine]

Well, I would suggest that you better take loans and promise them a fixed return rather than agreeing to profit's share because I am telling you from my experience when you take loans and trade with someone else money you would always feel under pressure of doing more trades and that is where even the best traders fall apart.

The best way to accept investment from sources is by promising them a reasonable amount of return on their invest monthly or yearly as it suits both parties. This way you do not create unwanted pressure on yourself and once you accumulate enough funds of your own you can always tell them that you do not need more investment, while if you work on profit share you are always bound to work with them.

 

[Emerson]

Computing your profits while not yet proving the good trades is not a good way to indulge yourself into this responsibility. I know for sure that you knew trading isn't always the winning thing. If someone will loan you money to trade, did you two perhaps have a deal on how will be the consequences if you lose the trades?

It is not a good idea to take someone's fund and trade it even if you have a deal of 50/50 for the profits. The way I look into it, your friend is investing into you thus it wasn't 100% guaranteed that you will give back that 50% as you promised since trading should not be taken for granted

 

[Stone]

Try out a small amount then use excel when calculating. Implement formulas so that when you add numbers, the total could easily be seen. Also, I'm assuming profits also include losses? Cause if no, then you're going to lose quite a bit. Also, the math seems to add up, I also don't see anything wrong with it. Additionally, if your friend would like to add funds when he's already given you some, you can imagine it like ending the first contract and continuing with a second contract. Just get his share and add it to the funds he's going to add again and rinse and repeat.

Though you guys should probably set an amount where you would stop so that losses wouldn't exceed a certain percentage, for both you and him. Just beware that since you're doing a 50/50 share, you're also going to share a 50/50 loss whenever a loss happens, and since your investment is higher than his, that could be quite painful.

PS: if any newbies would like to use this guy as a medium to trade, I suggest not. Not saying that this guy is bad, but since he's trading using his friends' funds, there's nothing wrong with that since they know each other irl, but for those in the forum, you could only be said as internet friends, which is really just a friendly saying of strangers.

 

[Ronan]

If ever someone wants you to trade for them using their funds, I don't see any wrong with this one dude.
Now the answer of course would depend on you, and it's up to you how many percent you can give profit to your
capitalist, if yo want to play safe you can tell him/Her that you can give 1% daily profit where in 1 month 30%.
but this is just a suggestion came from me only, the final choice or decision will still be yours.

 

[Mustafa]

Easy solution. Don't allow your friend to loan it to you. Instead, have him create a trading account, with him being in full control of the funds. Then you are only given API access so you can execute trades, you can't deposit or withdraw. This gives you no way to access his funds. Then if he makes profit, he gives it to you directly.

Warning: don't do it though.

 

[Ignacio]

That's quite simple mate. Ask your friend to create an account on the exchange you want to trade and then ask him to deposit the amount himself and get the credentials and then trade for your friend. I know you have already said that you don't want the hassle to create multiple accounts which is why for every person you are trading you will have to say them to create the account. You will just have to maintain the credentials.
For that you can use a software or a trusted extension which encrypts the credentials.
Also, you must keep your account and trading separate and do not mix it with your clients or else it will just create a mess and will trouble you to calculate the profit/loss.

 

[Jesiah]

I once worked at a brokerage company and the broker manages customer money...
trading with other people's money is nothing new, but you must have good skills so that people who entrust their money to you are not disappointed and even sue you because of their loss. I personally do not believe you are able to manage other people's money for trading in crypto, jajajaja.

 

[Cash]

You can be called as a fund manager if you manage someone's fund and not yours. For those who want to become a fund manager, it requires a lot of knowledge about cryptocurrencies especially in trading. The risks are high because when you manage someone's fund, it can affect your emotions and decisions when it comes to trading. Using someone's fund is good if you do not have enough capital and you want to grow it but it is a bit risky because it is not your fund after all.

 

[Daxton]

If you want to be a fund manager for someone's else money then it is always better to have their money in separate account then you won't get confusion with your profits and theirs.There are some tools available in the market to connect multiple exchange under one wallet but I am not sure about their trust level.

 

[Walter]

PS: if any newbies would like to use this guy as a medium to trade, I suggest not. Not saying that this guy is bad, but since he's trading using his friends' funds, there's nothing wrong with that since they know each other irl, but for those in the forum, you could only be said as internet friends, which is really just a friendly saying of strangers.

But don't lose the opportunity for you to grow in trading as you are just relying on other people.

My point here is that, you should be responsible about your assets as you are the one who earned that. I'm not against the OP, but are you thinking of the possibilities? It's okay if someone is so busy that he can't pay attention or don't have time for him to control his assets, that's understandable. But if you have that opportunity to learn trading, grab it!

Just like what you've said, if they are friends in real life, that's okay. But still friends can betray you, we never know, it depends on the situation if you really trust someone to handle and trade your assets.

 

[Erick]

Hello. I've been quite successful so far in my trading endeavors. So much so that I've been offered a decent amount of money to trade with if I split the profits 50/50. I just have some questions on how I can go about doing this carefully.

50/50 is quite good enough mate, you both agree with the sharing at first but if you are using the more than the amount that he'll give to you, well that is a different situation and sharing. Handling money is really hard when you don't trust each other, it could sometimes create the misunderstanding that leads into questioning. I suggest having all the records intact and available for that case.

But to avoid such a thing, I suggest you have your own capital. And in times you'll lose (as we can't neglect it to happen), you can't be blamed either.