Funding for non-algo/HF Trader?

Discussion in 'Professional Trading' started by Ericsmithx1991, Feb 25, 2016.

  1. I've been trading options on futures for 2 years now and have a good option writing strategy that has produced 45% return in Y1 and 52% return in Y2. My issue is my account size is pretty small (under $50k) and whenever I look online to see if I can get funded from a firm, it seems they only want High Frequency or Algo traders. Are there any firms that would fund a trader like me? Are my returns high enough to even get funded? Thanks!
     
  2. How did your strategy do in 2008?
     
  3. Why do you need anybody -- it already seems you've found your gold mine :finger:
     
    dartmus likes this.
  4. I haven't back-dated my strategy to see how it would have done in 2008.

    I am looking for additional funds so I can start to trade my strategy full-time as I currently work a 9-5.
     
  5. minmike

    minmike

    Option writing strats usually do good for 4 years... and then get wiped out. There are places for non hf traders, im not sure you are ready though.
     
  6. Sig

    Sig

    Those returns are a big red flag that you're taking on more risk than you think. Funders don't want huge returns, they want alpha or above average risk adjusted returns. They would be much happier to invest in something with a 7% return, beta of .1, and max drawdown of 5% that also shows those numbers under a stress backrest than in a strategy like yours. To look at it another way, there are thousands of people trading options in a personal account. By sheer random chance, a few are going to have a 45% and 52% return over 2 years. Those are the ones who are going to seek funding, the ones who blew up obviously self-select out. It's impossible for them to know based on those two topline numbers if you actually have any skill or are just the product of random chance.