MacroDozer Account Opening
At some point, we must share prodigy and marvel
Table of Contents
1. Executive Summary
2. Why Should You Care?
3. Account Opening Process
3.1 Joint Tenants In Common Account
3.2 Funding & Withdrawal
3.3 Fee Structure & Minimum Deposit
3.4 Legal Matters
4. Investor Relations & Lock-up
5. Final Comments
1. Executive Summary
Account opening is possible when your trading is limited.
The funds will never leave your hands.
Transparency and flexibility are close to 100%.
2. Why Should You Care?
Please don’t. At least not too much.
In recent months, we've seen an above-average demand for organizing or managing other people's money. While we are not official investment advisors or wealth managers, we can see the benefits of replicating personal trades for friends and family. In addition, our background in investment banking and our secret lifelong love for trading could help with some of these challenges - that's where this journey begins.
We also understand that not everyone has the time to follow every BrainDozer1 and that using MacroDozers' favourite tools like data, probabilities, and derivatives can be overwhelming. After all, keeping up with the markets is a full-time job.
In this article, we would like to share with you how we might be able to help. Friends and family, that's it for now. We will find a way if you are interested and do not find yourself in either category.
We enjoy creating content and sharing ideas through BrainDozer articles. That's why we will continue to use this format instead of creating a more structured website that lacks dynamics and the mental journey.
3. Account Opening Process
MacroDozer has no interest in depositing and holding other people's money. On the contrary, we enjoy complete transparency and flexibility for all parties involved. Over time, we have always managed to start projects cautiously and make incremental improvements and course corrections. This is because we, too, know the value of optionality, and the more the collective value is preserved, the better.
With this in mind, we will cultivate the account opening process and the business relationship. Let's go.
3.1 Joint Tenants In Common Account
MacroDozer's preferred broker for most derivatives trades is tastytrade. Founders and CEOs Tom Sosnoff and Scott Sheridan founded thinkorswim in 1999, acquired by Charles Schwab's TD Ameritrade in 2009. At the time, thinkorswim was the best options trading platform, now superseded by tastytrade with an even faster and more intuitive trading and data analysis package.
Funds deposited with tastytrade are protected by the SIPC (Securities Investor Protection Corporation) and a group of London insurers, with Lloyd's of London being the lead insurer.
Opening a MacroDozer account means signing up for a Tenants in Common account with tastytrade. Control of this account is shared with MacroDozer, and Tenants in Common implies that ownership of the assets within the account is segregated.
Setting up trading activities via individual Joint Tenants in Common accounts instead of pooling money in funds saves time and money. It also keeps things clear and transparent.
3.2 Funding & Withdrawal
US residents can quickly link their bank accounts to tastytrade via an ACH relationship and fund and defund the account. A traditional bank transfer for depositing and withdrawing money is also possible.
Non-US residents can deposit and withdraw funds from the tastytrade account via a traditional international wire transfer or through CurrencyFair, a fast and cost-effective option for cross-border transactions.
3.3 Fee Structure & Minimum Deposit
The annual management fee to cover time and administrative expenses is 2.0%. The minimum deposit is $50,000, and the maximum is $1,000,000. We charge the management fee no earlier than one month after the first trade entry and when the overall portfolio performance has exceeded 2.0%. We earn the fee before we charge it.
The annual performance fee for Prodigy and Marvel is 20% and is charged twelve months after the first trade entry. This aligns interests and keeps motivation at a healthy level.
Example Calculation
Deposit: $100,000
Performance: 30%
Earnings Before Performance Fee: 30,000
Performance Fee: 30,000 x 20% = 6,000
Net Earnings: 24,000
The annual performance fee will only be charged if the Net Earnings are positive and exceed the relative S&P 500 benchmark performance over the relevant period.
3.4 Legal Matters
The Joint Tenants in Common agreement signed with tastytrade covers most legal matters. For example, you give MacroDozer the authority to execute trades, but MacroDozer has no transfer or other control over the money.
We may sign other papers once MacroDozer has a legal home, probably in winter 2023/ 2024, UAE.
4. Investor Relations & Lock-up
We will have limited time for investor relations2 to achieve optimal performance and keep costs as low as possible. The focus will be developing investment ideas, including trade structuring and execution. Weekly BrainDozer articles and a LifeChat will cover the majority of investor education and communication.
Technically, there is no lock-up period, the accounts and funds are 100% owned by the account holder, and there is complete freedom in the flow of funds. However, the annual management fee is calculated based on the maximum money held in the account during the year.3
Having said that, we prefer to work with funds that are idle and not needed. Steady hands and stable funds can generate actual performance and compound annually. MacroDozer reserves the right to stop trading when funds fall below certain funding thresholds.
To better understand MacroDozer's investment strategies, including risk management and performance measurements, please read MacroDozer's Investment Philosophy.
5. Final Comments
Expect the MacroDozer Account Opening article to be updated regularly. We will continue to streamline the process and add additional details as requested or necessary.
BrainDoζer articles and trade alerts are for educational purposes; they do not constitute investment advice.
Unless you let me spin your Oceanco occasionally.
Excludes MacroDoζer’s current year performance.