If I am a prospective investor who wants to give my trading account to someone to trade I will look for the following :
1) Atleast 6 month's track record of the person's own trading account showing steady increase of capital. If there are too many sharp spikes/valleys , that means that the trader is dangerous. he can make big returns but he can also wipe off the account in no time.Posting calls and some high profit screenshots does not necessarily give full picture of how the account is handles professionally as a business, even assuming that the screenshots are true.
2) Talking to the 4-5 other clients to ensure that the risk parameters are strictly adhered to. Also find out how honest the person is when it comes to admitting his mistakes.
3) Finding out whether the trader has well defined method and a competent MM and risk control plan. I need not know the exact details of entry /exits etc.
4) I will start with small capital of say 2-3 Lakhs and observe all the trades, check contracts notes every day to see that all rules are followed.
5) We must have a rule for maximum loss for a day, for a week and for a month. These limits should NEVER ( means not even once) be exceeded.
6) Have a meeting every 3-4 weeks either meeting personally or on chat to ensure that all is going as per what is decided. Put all terms on paper ( it may or may or be a legal agreement ) so that later either party cannot say "I never meant that or I thought it that way "
7) If the trader does well , pay him his agreed share immediately. Dont cut corners in that or delay his payment. Trust is a two way street.
Smart_trade