Selling systems I developed to hedge fund

Discussion in 'Professional Trading' started by mchugh, Jun 26, 2005.

  1. I suggest the following: Ask to join the hedge fund for a minimum of one year and ask for a sizable bonus up front. The bonus is in essence payment for the systems, and the year is to make sure they get implemented correctly and ensure them that you won't bail after receiving payment.

    Both you and the HF will have "skin in the game", which is how good business usually is built.

    Edit: I have started and build several software companies, and that's how I always buy/embed third party technologies.
     
    #41     Jun 27, 2005
  2. MAESTRO

    MAESTRO

    I second that. From my own similar experience hedge funds will not touch you unless you are personally attached to the deal (what ever deal you can strike). So, find a fund and marry it for a while, see how it goes.
     
    #42     Jun 27, 2005
  3. mhashe

    mhashe


    Personally I have very little faith on individuals who openly professes to be a person of faith. They're usually the most crooked around. :D
     
    #43     Jun 27, 2005
  4. Too bad for you, you may be missing out on some excellent people in your life.

    :p
     
    #44     Jun 27, 2005
  5. Choad

    Choad

    The first question anybody should ask is "why are you selling a good system that makes money?". The idea that "I have enough money and I don't want to trade it..." is a bit thin IMHO.

    The other point is to look at different system sites like Chuck LeBeau's and Wealth Lab and even Collective2 and see how many systems no longer work. So maybe selling them is the way to go - get your money now because the system won't work soon anyway. And if that's the case, why would you buy them, or at least, why would you pay more than five bucks?
     
    #45     Jun 27, 2005
  6. mchugh

    mchugh

    I'll trade the s.o.b.'s if I can't sell them. There's nothing "thin" about it. But given the option, I would prefer to sell them and take the risk and some money off the table. That's why I started the thread - to find out if selling them is a feasible option.

    And if a hedge fund were to look at the stats and the backtesting as well as the real time trades for the last seven months, they would then make an assessment on the value of the investment. I think $5 is a little low.

    But thanks for the input.
     
    #46     Jun 27, 2005
  7. TGM

    TGM

    Well there are people at institutions that look at and buy systems. Not uncommon.

    Commodities Corporation had a whole program for buying systems from traders. I know they still had something going for Goldman Sachs (CC is now owned by Goldman Sachs). I don't have any more details for you. I am not a systems guy.

    The people you want are institutions. Large Wall Street institutions or large Institutionalized hedge funds (there are only a handful that do this). I do not have any contacts anymore on the system side. But they are out there.

    You definitely want to start by calling Commodities Corporation in Princeon New Jersey. They have historically dealt with alot of systems. Although they are only a mirror image of what they were 10 years ago. There are people there that you can glean info from. There is not a firm on Wall Street that has NOT bought systems at one time or another.

    Oh and I have seen the paperwork and the details that CC wanted for systems (this was around 1997). Very thorough.
     
    #47     Jun 27, 2005
  8. mchugh

    mchugh

    Thanks for the concrete info, TGM.
     
    #48     Jun 27, 2005
  9. Hamlet

    Hamlet


    Funny. :D
     
    #49     Jun 27, 2005
  10. Once you give real signals ( generated by your system ) their geeks will crack your codes in matter of days at most.
     
    #50     Jun 28, 2005