Starting Black Box co.

Discussion in 'Professional Trading' started by GoinBig, Nov 16, 2011.

  1. GoinBig


    I do not want to register as CTA because I have high paying consulting job and they may not like it.

    I have a robust model as well as performance record, which is the way to approach bank/prop for licensing it?

    PS: I already know about currensee and covestor
  2. GoinBig


    Some help please!

    I'll need atleast one month notice to resign from job. So current plan is that if I can get any of these biggies interested, I'll notify about my resignation. Just want to be cautious, since trying this first time, that I don't end up with nowhere to work.
  3. Banks/hedge funds do not typically license trading systems.

  4. RAY


    Since you are leaving your high paying job (with a months notice); that makes your reasoning for not going the CTA route no longer an issue.

    Your Welcome
  5. GoinBig


    Well, it's not just a one month's notice, I'll need to do few things before I leave: find a replacement for myself, settle up few things. This may take anything from 25-45 days and will help me maintain goodwill. I just need to make sure that I'm about to have good cashflow before quitting job, just want to be conservative in this economy.
  6. GoinBig


    Also, the FX model I seek to license has characteristics which Funds may prefer. I've used a lot of conditional hedging to smoothen the equity curve which comes at the cost of lower CAR. The typical HNWI may not appreciate it.
  7. Then don't give notice until you see the cashflow.

    I have lost count of the number of new black box firms I have seen fail. Most had proprietors as confident as you appear to be about the viability of their trading models.
  8. GoinBig


    I understand this business (rather most startup) is inherently risky; hence the same reason for being cautious.

    So I've met this guy on linkedin who seems to have lot of contacts. He says if I can write a decent white paper he will get me crucial appointments. I will start working on the white paper from Monday. Other suggestions are welcome.
  9. kxvid


    Linkedin isnt really setup for meeting anyone besides scammers so id be cautious. You best bet may be to setup a blank check company and trade the system on your own acct. Accredited investors are going to want to see prior business success among your founders. Its hard to get taken seriously without having atleast a bachelors in some discipline. With that and a compelling story getting funded is hard but possible.
  10. GoinBig


    English is my second language so I don't know what my posts sounded like :D I'm about to complete PhD and have good background in telecommunication networks.
    #10     Nov 18, 2011