I have just recently finished developing and testing a system that requires at least $1 mil USD capital, and I want to run it on Tradestation. How do I go about obtaining this capital? I looked at some of the pro firms that let you use their capital, but they seem to require that you use their platforms. I have things completely automated and that is a must (I have, at times, 150-160 stocks trading at one time). Obviously, I could port the code over to any automated system, if I approved of it. I thought about just running it with my measly capital, but average shares/trade will be 10-20 shares! obviously, not a good idea from a commission standpoint (unless there is someone out there that bills comissions in 10 shares, lol) The system has a 62.5% return with a 4% drawdown, consistent for the last 4 years (its all the data i have). Trades average 2-5 days. Trades U.S. equities. -funky
you mean you moving into the dream home, but you dont have any trading capital? You trying to get on that show "Cribs"? Mr. Zen
Try a Venture Capital firm (the small ones)... Make up a very formal business plan with incredibly detailed projections, and bring a very well laid out bio of yourself with your background and experience pertaining to trading or systems development. Venture Capital is out kickin tires right now....good time IMO to show them what you have.....why not?
Funky So you want someone to give you capital to trade with. You want them to let you hold positions for a few days. You want them to let you trade it on a tradestation platform. You don't want to give them any % of the profits. You say itâs a 4 year back tested system but never used in a live trading environment. It seems like your not rational and would you give money to a person like you? Have you spoken with your parents maybe they will give you the money? Do you have a past profitable trading record?
i've actually calculated that I need around 200k capital (with 2x margin @400k) to get to 100 shares / trade. that would keep commissions at the normal .01 / trade. so i guess i'm not too far off!! i am probably going to just trade it with my capital for now, just to gather more data (even though I have spent the last 2 months acquiring appropriate slippage #'s so i could put this thing together). i have calculated that even with my measly wad of capital, trading on average 20 shares/trade, and paying 5x commissions (paying for 100 shares/trade minimum), the system still performs good enough for now (40% return instead of 62.5%, and still a ridculously low drawdown). the only question in the meantime is, am i gonna get fill problems with 20 share lots? not a bad problem to have though lol
Yes they will....in the beginning. Then build up your capital from profits and expand on your ideas and build further systems....then go SOLO!
brokerboy, these are definitely the obstacles. i don't even like the idea of using other people's money to trade, its sort of a last resort thing. basically, the entire reason is to reduce the skid on my trades by way of commissions. i have already gathered the slippage data and have very detailed/precise models. this is something that has evolved over a year. obviously, people lending me money are either going to get: 1. commissions (bright model). 2. interest on the money (bank loan model). i am not, however, excited to give away my profits to anyone. especially if i have to share my system, or enable someone to be able to backwards engineer it, although it would be quite hard. my parents are not rich.