I have developed a strategy that has shown some promise with the projection of closing prices in individual equities. I have tested it on about 50 stocks, many times each. I am about to test on a much larger data set. Provided that the strategy continues to show promise, I wanted to get some advice on where to go with it next. The way I see it, I have 2 options: trade it myself and then try to raise capital (while I have only a small amount of capital I could initially use, I would be able to raise much more should trading go well), or try to sell the strategy to someone. I am a bit confused on who would be interested in a strategy like this. It isn't HFT, it might make a few trades toward the end of the day and hold them to the close. Would a prop firm have any interest in something like this? A bank, hedge fund? I really have no idea where to go with it should I go this route, so any advice is appreciated.
Trade the strategy yourself and build a track record with it and then explore other options. Having an actual track record will improve your chances greatly of either being able to lease or sell the strategy or to raise capital.
I agree with fan27 -- Trade the strategy yourself first to build a track record. Use a separate brokerage account just for this strategy, so you can easily show the results. Also, the biggest bang for your buck would be using options.
I agree, K. Dog Many people are so quick to talk themselves up and build-up a big game...But if you'd ask them to document a proven real money track record that lasts and proves for a year or greater...many will drop like flies and disappear. I don't think a single trading journal here on ET has ever came out a winner overall in the end. It's rare for someone, anyone, anywhere...to step out of the shadows and into the Light`