Our weekly newsletter is out, and we’re tackling one of the questions we here more than you might think: how can I start my own CTA? From managed futures billionaire David Harding of Winton, to the legend of John Henry leveraging managed futures success into ownership of the Boston Red Sox, to the tale we recently told of Bill Eckhardt and the Turtle Traders – there are plenty of alluring stories to entice skilled traders to try their hand at becoming professional Commodity Trading Advisors (CTAs). Taking the leap from trading your own money to managing others’ is the first step toward building a legend of your own, but how realistic is it to turn that gleam in your eye into a successful enterprise and tens of millions in the bank?

You might think that your worries extend no further than: 1. Make money, 2. Be operationally sound, and 3. Be properly registered and compliant.  But even when you do everything you are supposed to do, the assets don’t always just come pouring in. What other challenges must an upstart CTA overcome? Well, for starters…

Jumping into the managed futures space means entering a David versus Goliath situation, as just a handful of huge CTAs control the bulk of managed futures wealth (in terms of assets under management). Does this mean all hope is lost? Definitely not. It isn’t easy, but there are a few things you should know before getting started.