What should I do?

Discussion in 'Strategy Building' started by galilean, Apr 15, 2008.

  1. galilean


    I'm a software engineer. I have spent most of my spare time in the past few years on studying the stock market. I worked out a model which seems to be quite promising based on backtesting. In particular, my model trades stocks only (no short). It might take 10 to 20 minutes to make around 5 trades a day, ideally near the market close (because my back testing is based on daily close price). My backtest runs back to year 2000 and the average anualized return range between 40% to 50%. To make this model work, I need a startup capital of at least 200K.

    What should I do? Can I sell this model to somebody (a trader or a trading company)? Should I look for an investor to put this model into work? Anybody interested in this model?
  2. Unless you trade it yourself and you have real records that are close to your backtesting results, you're probably not going to find any major investors. My suggestion is to trade whatever amount of money you can afford to trade with and either automate your strategy by hiring a programmer or trade it yourself, the former most likely being the better idea since you have a day job.

    Or you could quit your job and join a proprietary trading firm, they'll back you with size if you show some profitability off the bat.