I have several workable Hi-Freq strategies for trading that I would like to implement. I'm currently in the process of looking for a programmer that can interface with my execution system.. I ran black boxes at my old company and knew the rate that was paid to the programmer.... That was several years ago.... Whats the current going rate/ a fair rate to pay a programmer? I'm putting up all the money, I created the strategy, and I'm taking all the risk. Thank you.
It depends - in a % of profits scenario - will you give a written commitment to trade a certain amount of capital for a prolonged period of time to allow the strategies to work? Will you provide account statements to confirm results? In the end, the programmer has to be able to estimate a return on his investment in time (vs. opportunity costs) to make this a risk worth taking.
I own everything and pay for all expenses. I just need the programmer to create a program (probably C++) to interface with the API on the execution system. If I make 50K/month net of fees on one of the disciplines... how much is a fair amount/ going rate.. to pay the programmer?
Let's slow down to make sure we are on the same wavelength. 1) The programmer gets nothing up front. You are proposing he gets a % of profits, the actual % to be determined. Is that right so far? 2) After the software is done, win or lose, you own the software. Is that right? Once I make sure I have the facts straight, I will give you my opinion.
YES and YES. He is working for free. He just wants a percentage of the Profits. I'm confident in the strategy so i'm ok with that. Just curious about the going rate. Still might put a high water mark clause in (because you never know with this market) is 10% fair?
If you're so confident of the strategy why would you give him a cut of the profits? I'd bite the bullet and pay the costs up front. The math to decide which course is better isn't too hard. You must have some idea of how much you expect to make with this strategy, no?.
might want to put in a "low water mark" clause as well, lol... 10%? of what? 10% of returns, over what period of time, over what capital base? trading on what frequency, which markets, what level of leverage, etc.?