How to sell a profitable trading strategy?

tomorton · Aug 11, 2019

Aquarians said:
Preferred path is through networking. I'm starting to work with a former big-finance trader who's friends with a guy whose father in law is a high network individual (some $100MM net worth). I know the latter is willing to put up $1MM-$5MM of seed capital into a hedge fund business (he's already got about half of his money in stocks anyways). As long as what I have is legit, I think I have a good chance on getting that seed capital.

My problem now is not that my research results are not up to the challenge, as far as I see it they are up to much more that millions, probably could handle billions without anyone much noticing. My real problem is security, how to handle research results with enough discretion that they keep working ... indefinitely?
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Good luck to you.

TommyR · Aug 11, 2019

aquarias deserves after 14 years i think

easymon1 · Aug 11, 2019

is the process black box, or will customers know how to replicate your system?

murray t turtle · Aug 11, 2019

tomorton said:
You've spent 14 years on this project and you say you don't know what to do next. I could not under any circumstances put any faith in anything you say.

But if you find that psychiatric help is a little expensive, I might be tempted to help out.
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%%
Well @ 30-40%, if it was me- I would buy + sell/trade it myself.But then i'm a trader/investor,pardon a little humor, i'm not into overpriced psyco babble much.LOL.
And the way markets work, I wish 14 years would fix us for life; but markets change, so I would find something I enjoy .

Amahrix · Aug 11, 2019

ffs1001 said:
As my post count shows, I am relatively new to Elitetrade, but I am not new to trading - been doing it for a couple of decades. I do it for a living with my own money. I came to this site as a means to learn from others (and share some of my own knowledge), and I'm trying to stay professional but a couple of threads have made me question the seriousness of some of the posters:

1) A guy who has a winning system capable of making him 30-40% a year and yet he has not used his own money to benefit from it, but instead is looking for someone to give him millions for the "system".
2) A guy who claims to have made 8000% profit in a week.
https://www.elitetrader.com/et/threads/up-8-000-for-the-week.334957/

I have no idea what to make it all frankly.
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https://www.elitetrader.com/et/threads/are-you-too-anxious-to-win.334884/

easymon1 · Aug 11, 2019

Mr. Aquarians
Call this guy Monday 1:00 - 2:00 PM EST, he's a cpa, trades, sells a system, has run other successful businesses, seen a couple dollars and people, friendly all day long. He'll sort you out.
TOLL FREE 877-927-6648
INTERNATIONALLY 727-873-7618
live while the livin's good.
cheers.

kj5159 · Aug 11, 2019

Aquarians said:
It looks like research is eventually giving results (after 14 years it would be about time) and backtests show a yield of 30-40% per year with a Sharpe of over 2. Good enough to deploy it on my own money, but I've too little of those money to be worth keeping this just for myself.

I know the "regular" path for retail (a.k.a "dumb") traders is to run the strategy on their money for a while then show "track record" and hope someone buys that. But there's also the quants working as researcher in hedge funds and once they find such a strategy, they don't have to run it for 10 years on their own savings to convince the fund to deploy it on it's capital. It's their job to do that, if the strategy withholds theoretical peer review and passes staging (virtual paper) tests, it's getting promoted to production.

I've never worked in such an alpha research position, partly because getting one is about as straightforward as winning the lottery and partly because in my location (Romania) the only work avaible is of the low level code monkey type. And when you got that, the whole ecosystem (local peers, local managers, remote managers, remote CEOs) is structured around never acknowledging that monkeys can think (me doing research as a side project), let alone talk (bring it out in the open). It's like Sarah suddenly starting to say, right before she passes away since she's nothing to lose anyways, "fuck you yew piece of shits, you could have been rich if only the thought that my opinion matters would have gone through your tiny heads" ( https://www.nytimes.com/2019/08/09/opinion/chimpanzee-sarah.html )

So anywayz, I have to re-run the tests on a broader scope but this time I'm 99.9% confident it's the real thing. I've been 98% confident previously and it was faulty data, since then I've thought of a curated data feed as a possible side business to my side business but that's small change anyways (although I've listed the subscription price at $12,000 / year). Now it's most likely not the data, or if it is then I'm raising my curation price to $120,000

So how to proceed from now?
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Quantopian.com

Hedge funds will plug in your strategy and pay you a cut, no risk to you.

TommyR · Aug 11, 2019

aquarius im 100k usd bid for this strategy i think its a fit with my risk preferences

TommyR · Aug 11, 2019

*aquarians make sure you improve me quickly if it goes higher or looks to be runnning away

ironchef · Aug 11, 2019

Aquarians said:
It looks like research is eventually giving results (after 14 years it would be about time) and backtests show a yield of 30-40% per year with a Sharpe of over 2. Good enough to deploy it on my own money, but I've too little of those money to be worth keeping this just for myself.

I know the "regular" path for retail (a.k.a "dumb") traders is to run the strategy on their money for a while then show "track record" and hope someone buys that. But there's also the quants working as researcher in hedge funds and once they find such a strategy, they don't have to run it for 10 years on their own savings to convince the fund to deploy it on it's capital. It's their job to do that, if the strategy withholds theoretical peer review and passes staging (virtual paper) tests, it's getting promoted to production.

I've never worked in such an alpha research position, partly because getting one is about as straightforward as winning the lottery and partly because in my location (Romania) the only work avaible is of the low level code monkey type. And when you got that, the whole ecosystem (local peers, local managers, remote managers, remote CEOs) is structured around never acknowledging that monkeys can think (me doing research as a side project), let alone talk (bring it out in the open). It's like Sarah suddenly starting to say, right before she passes away since she's nothing to lose anyways, "fuck you yew piece of shits, you could have been rich if only the thought that my opinion matters would have gone through your tiny heads" ( https://www.nytimes.com/2019/08/09/opinion/chimpanzee-sarah.html )

So anywayz, I have to re-run the tests on a broader scope but this time I'm 99.9% confident it's the real thing. I've been 98% confident previously and it was faulty data, since then I've thought of a curated data feed as a possible side business to my side business but that's small change anyways (although I've listed the subscription price at $12,000 / year). Now it's most likely not the data, or if it is then I'm raising my curation price to $120,000

So how to proceed from now?
More...

Congratulations! I am happy you found your winning recipe.

I doubt you will find too many sympathetic ears on ET. Those that financially can afford to back you won't because they don't need you to make more money. Those who need your recipe usually don't have the funds to back you.

If I were you I take a two prong approach. With a 30-40% return, you can:

1. Quickly compound your small sum rapidly so eventually that small sum will become a big enough sum and you likely won't need external funds. It took me a long time but I don't need outside funding now. More important, it helps your credibility and credential.

2. Keep looking for backers and as your performance acquires a long term track record, money will come chasing you.

In any case, don't give up your dream. The worst thing for us is to regret should have, could have in our old age.