PoE Hedge Fund - OFFICIAL NO-GO AS PER GGG
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I dont need the currency as I have enough to buy any item I want. But a question to the OP. Did you consider a limit to the number of people that can invest?
Why? Because it can easily happen that someone would like to invest around 5000 exalts and then, would expect huge returns. That makes the question, are you that good at trading, that you could handle these amounts of currency thrown at you? Its easy enough to work with 100-200ex consistently, but once we approach big numbers, ratio between available high value commodities with good flow reduces, so there is a so to say hard limit to what you can do with any amount of currency before finding yourself with too much currency to liquidate. It can literally become a job and huge time investment on your side to solve that particular problem if it happens. I wont name examples, but it is a real possibility and is troubling if you think about it a little. Spreading salt since 2006 Last edited by Necromael on Oct 15, 2017, 1:40:53 PM
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" Swearing at a potential investor. Nice way of building rep. Also if you lack the imagination to turn something minor into something yuge I doubt you are able to run a hudge fund. Props to AmityXIII for pointing out my mistake. Was a yuge flaw on my part. Solly! Last edited by Hallsttattian on Oct 15, 2017, 1:55:20 PM
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" " IUGE Acronym Definition IUGE International Union of Gaming Employees IUGE Intraoperative Ultrasonographically Guided Excisional Biospy " That's quite alright Mr.Hall. You can quickly rectify this minor mis-hap by investing in the newest "yuge hudge" fund! Just imagine the possibilities. Welcome aboard! SUPPORT TAGS LIMIT REACHED!!?? - Fine then.... twitch.tv/amity13 Last edited by AmityXIII on Oct 15, 2017, 2:11:17 PM
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Oh... a HEDGE fund. I was wondering what the hell a HUDGE fund was?
Be seriously... this idea that you state "that's been bouncing around my skull for the last few weeks" must have caused contra coo lacerations. No one should enjoy commodity trading more than actually playing the game content. Even more so with the bad state of trading in PoE. "You've got to grind, grind, grind at that grindstone..."
Necessity may be the mother of invention, but poor QoP in PoE is the father of frustration. The perfect solution to fix Trade Chat: www.pathofexile.com/forum/view-thread/2247070 |
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" Ha, I hear you, mate. But it is what it is, as they say. That's just the nature of my wiring, I guess. I've always been that way (WoW, Diablo, etc.). I probably spend 25% of the time running maps and 75% trading. Go figure. " Oh, fear not. You're not a potential investor. " This is a great point, and it goes along with Shag's point. My current thinking is that I'd only take a limited number of small initial investments. Maybe 10 people @ 100c each. Probably friends, clan members, and early adopters who get in touch with me. Very small. With that, I'd simply demonstrate the viability of the investment model and would be able to work out any kinks. After that, I'd allow them to bump up their investments to something more sizable, but would still cap the amount (say 1000c perhaps). I would probably want to work with that for a little while before moving on. Finally, I could imagine having more people added to the fund, but on a 1-by-1 trial basis. Add someone, regain their deposit, get a feel for the volume, then add someone else if all good. That way I could organically reach a level that felt sustainable. I would likely take the fund members' input insofar as balancing the number of participants with the maximum investment capital. I'd like to have a diversity of investors, though, to benefit different types of players. Have some guys who want to invest big (hundreds of EX), but then also have small guys who are just looking for a leg up (50c - 200c). That would allow for maximum community impact and would also let me dial in my capital quite precisely. | |
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Value of pixels differs in the eyes of each player. That's why something like this will not and should not work in the setting of PoE.
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" I'm afraid I have no idea what you are talking about. Perhaps elaborate? Fact is, the market determines the relative value of currency. This is the case in PoE, as well as in IRL. Whether or not an individual thinks a particular trade or item is a good deal is certainly subjective, but traders don't operate at the individual level. They operate at the market level. Whether or not 2 people agree on the relative value of an EX doesn't impact whether or not you can profit from trading. "Something like this" does and should work in PoE. It does every day. I'm already doing it. I'm just looking to expand upon that success. Maybe if you explain yourself a bit more, I'll get it. | |
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I see one problem, there is no actual investing happening here. At least not in the same sense as it occurs in the FOREX market place. The PoE currency market is in no way analogous to FOREX - as someone with experience in this area as well.
The price of currencies in PoE is more or less fixed, so for a 20% take you're really not doing anything except being paid a premium for your time. The only real volatility is in the exchange rate of exalts to chaos and that market is not as large as many would speculate. Why would you even take 20% of a person's return? It doesn't make sense and smacks of a scam, you should be able to take some fee sure but it should be very small thus your incentive is to grow the fund not simply skim chaos from the few investors you get. The fee should be proportional to the service provided and this service, from my perspective, is quite minimal. If trading is so fun for you why charge a fee at all just give people a proportion of their trade equal to the growth in the over all account (fund) - this would be a more honest way to run things. You will make more currency by virtue of being able to facilitate more bulk trades than smaller investors anyway so you will see more growth and can scrap the scam fee. Additionally, anyone can trade in PoE but calling what you are doing "investing" would involve a very charitable interpretation of the word. You basically set a buy price and a sell price and then sit around waiting for PM's you - risk nothing. In my opinion what makes CFD trading fun or interesting is the risk factor trading on leveraged positions for higher returns. |
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I had a pretty thriving 'business' in Dark Age of Camelot. I was honest with people telling them specifically my costs and asked them only to cover them. I made 'profit' off good will... and far more profit than my 'competition' made by trying to figure out how much to charge so the players wouldn't feel taken advantage of.
End game was that there was really no value to anything in the game, even though I once thought that there was. You'll get there too. A stack of 100 exalts only holds value because you imagine it should. They really don't. You'll either eventually quit playing, or you'll simply hoard them for their perceived value. Maybe you'll trade for an item or two which will quickly make the game even that much more boring. I can't see it lasting. See... money in the real world is power. Political power. You can make actual change to your environment with it. You can change "the game". Here, nah. Currency stops being meaningful, either at the end of the league or when you have what ever items you might want. |
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" Don't beat the guy up over semantic bullshit. If someone gives him money while he does this little operation then they are investing, period. Also, so much of what you said about the fee is asinine. I can't quite wrap my head around why someone would do this, but then again people make all sorts of weird decisions, like choosing to be celibate and I don't understand that shit either. This set-up would be great for me (if it actually worked). I always play a lot in the beginning of a league before taking a lengthy break and then returning to finish up a few achievements and find a new build. This way I could come back and have more currency to toy around with before the end of each league. I'd be willing to invest the 50-100c and give this a shot OP. Just shoot me a PM. |
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