A thousand bucks The reason I'd be able to live on $1000 per month is because I'd be drawing an additional $1000 from my savings. It's true a person can' live on $1000, but they can on $2000 (of course not in Manhattan), and still this sort of venture isn't for everybody, certainly not for the regular employee. The 50% equity is what makes it worth in my view, otherwise there are plenty of jobs that pay a lot more but never in a lifetime will they provide the opportunity that a startup could bring. And "If you don't find a way to make money while you sleep, you will work until you die" (Warren Buffet).
I might reconsider. Like constructing a profitable strategy, this whole cofounder thing is a tentative into the unknown. It takes tweaking and feedback to find the thing that works
So why not do it (full time r&d) for six months and keep 100% of the equity. It will only cost you an extra 6K for six months (plus the 6K which you are happy to take from savings). You can always go back to your day job after six months.
I plan to do exactly that in about a year from now (in the meantime I'm saving the money and exploring other options).
How does a person or idea go from obscurity to prominence? How does a seed or fertilized zygote become a Redwood tree or a person? How does a virus amplify within its host and spread to new hosts? How does the on/off switching of transistors lead to productivity gains through software? How does a business idea become a multinational corporation? How does a trader become profitable? The common denominators to these questions involves organized information, such as genetic code or an algorithm and a hospitable environment. Thus, for one to be successful, they need to either find the environment that is suitable for their system or adapt their system to the current environment. Several paths to wealth include using other people's money, other people's time or expertise, and/or developing a system that that identifies and capitalizes on market inefficiencies. Selling short term options seems to have a positive long term expectation because of rapid theta decay, with all other things being equal. If sound money management is used, one can more confidently increase leverage without creating undue risk of blowing up one's account. The addition of sound, basic technical analysis will allow one to enter positions when conditions are favorable and to avoid maintaining a position during an unfavorable trading environment. To reduce variance even further, one can either pursue a multiple low correlation asset strategy or use multiple entry points before reaching a full position. To address the OP's questions, I propose the following: 1. Analyze the market(s) you are interested in and develop a system that has a positive expectation without curve fitting. The system should be robust enough to show profitability in a variety of market conditions. 2. Trade this system for, perhaps, a couple of years while making adjustments to your system as necessary. 3. Once your track record is established, look for funding. Although my suggestions would take time to implement, you will be in complete control and will avoid the potential distractions a partner would bring. I mentioned earlier that one of the keys to success is using other people's time and expertise. However, my questions for the OP would address his willingness to put forth the sustained effort required in finding someone suitable for this task and properly maintaining that relationship.
That was my impression, too. The OP is looking for a "unicorn" and is willing to pay $1000 per month for a full-time job, which translates to roughly $6/hour wage. The job comes with a flashy title of a "co-founder", but pays below the minimum wage rate. The apparent intent is to liberate the OP from the time-consuming task of coding the options arbitrage models. The OP is betting on his assessment of the labor market which signals to him that the quants are so desperate these days (such as the former head trader at Deutsche Bank, currently unemployed), that someone will take him on his offer. Did I get everything right?