Mav seems to make sense. But I still don't understand why it's illegal if the owner of the actual money stays the owner and all i'm doing is setting up the trading strategy.. which obviously trades on it's own since its automated. Which firms are you talking about.
Replace trading strategy with dealing narcotics and you are saying the same thing. Hey your honor, it wasn't my money or my drugs. I was simply the go between guy. Look, the good news is all this doesn't matter because that whole prop structure is over anyway and it's the high cost of these regulations that is part of it. I don't understand why for the life of me you can't do your strategy in an IB account under a POA. If he is giving you more then 100k you can get portfolio margin which quite frankly is more money then any prop would give you and the money is insured. Oh, I hope you didn't leave out that little detail with him, that is the prop firm went under all his money is gone. Yeah, you might want to mention that.